Southampton’s last push for a level cruise industry playing field
15 March 2011
Southampton is making a last stand for a level playing field for the cruise industry, as plans remain afoot for public money to fund a turnaround port in Liverpool.
The Leader of Southampton City Council has arranged a meeting with Mike Penning MP on Monday, March 28 in a last attempt to put Southampton’s argument across to not grant state aid on a private industry.
Councillor Royston Smith, said: “Southampton City Council has led the protests from the start. I’ve sent several letters to both Mike Penning MP and the Secretary of Secretary of State for Transport, and now we will make a last stand at this meeting. It’s vital our voice is heard.
“The Port of Southampton has positioned itself as the cruise capital of Northern Europe by means of private investment. Liverpool must do likewise.
“Around 400 million pounds is boosted into the local economy by the cruise industry in Southampton this year. That is 400 million that will benefit local tourism, transport and businesses, such as hotels, restaurants and Southampton’s retail centre and a 15 per cent increase compared to 2010.
“This is all by the means of private investment. I will do my up most to convince Mike Penning that if Liverpool wish to compete with Southampton they should repay their public subsidy and compete on a level playing field. To do otherwise is an abuse of public funding and must be considered as ‘State Aid’.”
Southampton has firmly established itself as the countries leading cruise port. Southampton is the largest turnaround port in Northern Europe and 360 ships are expected this year. That is 55 more than in 2010.
More than 2,240 jobs are now dependent on the cruise industry in the city.
Doug Morrison, Associated British Ports (ABP) Director in Southampton said:
“Fair competition has enabled ABP to invest over £40 million in Southampton's cruise business over recent years, and we plan to invest a further £30 million with the construction of a fifth cruise terminal.
“Southampton City Council is therefore right to ask that Liverpool is not singled out by the Government for special treatment.
“The only solution is for Liverpool City Council to find £21 million of private money to repay the taxpayer the full cost of building the terminal.
“Anything else would be unfair to all the people in different parts of the country whose jobs and livelihoods depend on the success of other competing ports, including Southampton.”
Work is due to start on the new fifth cruise terminal in 2012 and will become operational in 2014.
A final decision on state aid for Liverpool is expected to be made within weeks.
For more information:
Contact: Southampton City Council Media Team
Tel: 023 8083 2000
