LIVERPOOL has been handed more European funding to improve its waterfront as it seeks to win a slice of Southampton’s lucrative cruise industry.

As the “cruise wars” between the rival cities continues to simmer, the EU is once more pouring millions of pounds of public money into a Merseyside project to help the city economy.

It has has emerged Brussels has given Liverpool £3.5m to cover half the cost of a new waterside, passenger pontoon to boost its tourism trade.

The news will rub more salt into Southampton’s wounds as it seeks to regenerate its own historic waterfront in and around the old Royal Pier.

Alan Jones, project manager of the planned £10m Aeronautica tourist attraction at Southampton docks, said: “We wouldn’t have a cat in hell’s chance of receiving any EU money as Brussels considers us too affluent to need cash.’’

Liverpool is looking to strike a deal with the Government to allow the use of its £21m publicly-funded Pier Head terminal for full turnaround cruises, despite it being built with £9m of European funds on the condition it would only be used for calling cruises.

The previous Labour Government rejected Liverpool’s first request, ruling it would be “unfair competition.”

Southampton argued for a “level playing field’’, saying it had built up a highly-successful cruising industry, purely through private investment by Associated British Ports, owners and operators of the city’s docks, and city-based shipping lines, with not a penny of outside help.

Southampton council leader, Royston Smith, said: “We continue to ask for a level playing field and fair competition with other cities. Once again, Liverpool appears to be benefiting from another huge public subsidy, this time in the form of EU grant funding.

“I’ve said all along, Southampton’s success has not been a result of pumping public money into, what is, a private enterprise. We’ll continue to watch |developments with interest.”

The £7m Liverpool project will replace a similar, Pier Head structure, used by passengers travelling on the Mersey ferries, which sank in severe weather in March 2006.

But Mr Jones, a leading figure behind Aeronautica, a proposed heritage centre telling the story of Southampton and its role in transportation, said: “It is so terribly unfair, because if Aeronautica was being planned in Liverpool, the EU would give it firm financial backing, but there is no future whatsoever in Southampton even bothering to apply.’’

Hampshire Euro MP and UKIP party leader Nigel Farage added: "I give my wholeheated support for the stand being made by Royston Smith over the subsidies being given to Liverpool.

"Southampton is a sucess because of the hard work of its people and companies, but there hard work is threatened by the gift of subsidies to a rival.

"It is odd to me that a Conservative Government is supporting the use of taxpayer subsidies funeled through the EU to undermine sucessful private enterprise.

"The local conservatives in Southampton are bang on the money here. Southampton isn't asking for favours just fair play".

Liverpool council’s cabinet member for regeneration, Malcolm Kennedy, said: “I am pleased good progress is being made with this project, which will be another boost to city tourism. The waterfront is a major asset for the city and I welcome the fact the new pontoon will be in place soon.”