On a knife edge

A £4M scheme to expand the Cherry Tree Centre is on the verge of collapse after a dispute between the council and the centre's owners.

Parkwood Properties, which took over the centre last year, wants to extend the existing shopping area by building a two-storey car park and increasing the number of shop units.

Planning permission for the scheme was granted in February. But at a cabinet meeting last week Liberal Democrat and Conservative councillors joined forces to reject an offer by the company to buy out the council's 10-year lease on the centre car park, which is owned by Parkwood.

It is understood the company offered the council a settlement of around £500,000 but members felt the figure was inadequate compensation for the loss of £110,000 a year in revenue from parking charges.

Work on the scheme, which was due to start in September, has now been postponed indefinitely.

Robert Maxted, of Parkwood Properties, said: "It is disappointing and irritating that we have negotiated with officers only to find this overturned by councillors."

"The car park is an integral part of our plans and unless we can reach agreement we're going to have to say to prospective tenants that we can't proceed - it's as simple as that."

Wallasey Labour MP Angela Eagle has hit out at the two parties for taking a "narrow and short-sighted" view on the issue.

She said: "The council officers considered the matter in some detail and came to the view that it was in the long-term financial interests of the council to accept the original offer in relation to the car park.

"It is astonishing that Conservative and Liberal Democrat members are prepared to overrule the council's own experts and put the whole issue in jeopardy."

But Liberal Democrat Stuart Kelly - who had the casting vote - said the amount offered was just "not enough".

Conservative Cllr Lesley Rennie said: "Everybody wants to see the regeneration of Liscard and Wallasey but we want to make sure that we get good value for money; if we had accepted what was being offered there would be a loss for the council.

"We're not closing the matter completely and we hope negotiations will take place but we're not happy with the situation as it is at the moment."

A spokesman for Wirral Council declined to comment on the "confidential" matter.