COUNCILLORS on the Isle of Wight are set to make a decision today which could make waves across the Solent in Southampton.

The authority’s planning committee is to debate Red Funnel’s controversial application to build a new terminal building and marshalling yard in East Cowes.

If the application is refused, it could force the ferry firm to rethink their plans for their new Southampton terminal at Trafalgar Dock.

This in turn could have a knock-on effect of delaying the ambitious scheme to develop the Royal Pier site.

The proposal has caused widespread controversy in Cowes with objectors saying it will cost existing marine-related jobs on the site of the proposed marshalling yard.

However, Red Funnel maintain the £6.5 million scheme will create up to 200 jobs and create a “better gateway” to the island.

Their proposal involves demolishing the current terminal, along with seven properties, including a pub and a Chinese restaurant, in the town’s Dover Road and moving waterfront businesses located in Seaholme Yard and Trinity Wharf.

The proposals – which would eventually see the redevelopment of the old terminal with a mix of retail, restaurants and residential properties – is in line with the East Cowes Master Plan drawn up in 2007 and officers have recommended conditional approval.

The businesses affected will see their leases run out in 2017 and Red Funnel claims the two marine companies, which would have to move, could relocate to Kingston Marine Park.

Key to the new plan is a new marshalling yard to handle more vehicles.

Red Funnel say that last year there were 6,000 ferry departures from Cowes and on around 300 occasions the car park, divided in two by Castle Street, overflowed causing congestion in the town.

The plans have divided the island community and seen rival petitions set up – the pro-Red Funnel petition has more than 1,430 supporters while more than 800 opponents to the scheme have signed up with the East Cowes Community Forum.

The forum’s website says: “We would like to see an alternative plan that will ensure the town has a solid economic foundation and maximise the employability potential and security of this key waterfront assets for future generations.

“This plan conflicts with the established Solent LEP Strategy for East Cowes.

"The current proposal for East Cowes, by Red Funnel, as part of the Solent Gateways Project will damage innovative SMEs and the long term economy of the Isle of Wight.

"It will not increase tourism and won’t help true inward investment into the island." 

A spokesperson from Red Funnel said: “It’s a once in a lifetime opportunity for the Isle of Wight and the plan will bring huge benefits if it’s approved.

"The plan will deliver an improved ferry service, create new jobs and improve traffic flow around East Cowes.

"The proposed development will help the whole island prosper in the near future.”