Liverpool cruise terminal broke no EU rules

THE European Commission has ruled in favour of Liverpool in its long running sea-saga with rival port Southampton over the Pier Head Cruise Terminal.

Liverpool sailed into stormy waters when Southampton complained the conversion of the city’s cruise facility into a terminal broke EU funding rules.

Southampton wanted Liverpool to pay back all of the money it received from Brussels.

Last night, a statement released in Brussels revealed the European Commission has ruled that public funding worth £17.8m granted for the construction of the Liverpool cruise terminal is in line with EU state aid rules. It added the new infrastructure on the Mersey furthers EU transport policy objectives without unduly distorting competition in the Single Market.

It means there will be no claw back of the Euro money.

A Cruise Liner Floats By Fort Perch Rock (Pix Angie Sammons)

But Southampton City Council Tory opposition leader Cllr Royston Smith, told the Southern Daily Echo: “It is absolutely shocking that the EU thinks it is acceptable for public money to be used in this way.

“This is the worst possible outcome we could expect and really wrong.

“This tells us everything that we need to know about the need to renegotiate our position with the EU or leave it all together.”

Mayor Anderson's opinion obviously differed. He welcomed the ruling, saying: "We were confident of our position and are disappointed that the biggest UK cruise liner port felt it necessary to ask the European Commission to investigate, especially as the Port of Southampton has benefitted from public investment in infrastructure which has enabled it to grow to its current position."

The victory flag was hoisted above the Mersey as the first cruise ship of the season docked at the cruise terminal.

Complaint

The season begins with the arrival of the 700 passenger Discovery, with 700 passengers aboard. It will be the first of more than 40 cruise liners scheduled to use the cruise terminal this year.

An investigation was launched following a complaint by Southampton into the riverfront terminal which was originally built as a ‘port of call facility’. That meant cruise liners could call at Liverpool but not start or end cruises from the Pier Head.

After Joe Anderson paved the way for cruises to start at Liverpool the commission started to examine the financing of a new cruise terminal in Liverpool. The project received funding from the UK (£9.2 million) and from EU Structural Funds (£8.6 million).

The UK carried out an in-depth financial analysis showing that the terminal operator's income from the use of the infrastructure would be insufficient to cover the investment costs over a period of 20 years.

Therefore, the project would not be carried out without public funding. 

In their decision the EU said: “The investment will allow for a better exploitation of sea transport services, particularly in the cruise industry.

The Commission found that the public funding was limited to the minimum necessary to make the investment possible.

The Commission also found that the potential distortions of competition triggered by the public funding will be limited because the terminal will have a small market share, both in the EU and UK markets. The positive effects of the project will outweigh any potential distortions of competition brought about by the aid.”

Liverpool City Council’s cabinet member for culture and tourism, Cllr Wendy Simon, said: “The cruise liner industry is growing year on year and the cruise liner terminal continues to attract new ships.  This is fantastic for Liverpool’s growth and economy and simply highlights the success of the city as a popular tourist destination.

“It is always great to see these big ships on the Mersey and I hope we can encourage lots of families and young and old to go along to the waterfront and take a look at one of the many ships we will be seeing in 2014.”

Cruise Terminal manager, Angie Redhead, said: “I am delighted to be welcoming so many cruise ships to the city this year.

“Liverpool is going from strength to strength as a passenger destination and I hope we continue to see new visitors to our shores in the future.”