HOPES up to 400 jobs could be created in Southampton by a new Government department in the city have been dashed. The jobs are going to Tyneside instead.

The Marine Management Organisation (MMO) is be founded in the north-east. It is a blow to Southampton’s plans to create a major “marine cluster”.

Port companies, local politicians and trade group Business Southampton pitched the city as the “natural” home for the MMO to the Government.

The city is already home to a burgeoning cluster of marine expertise, they argued, with the Maritime Coastguard Agency, the National Oceanography Centre and the Royal Yachting Association operating out of bases in the city.

The prestige marine insurance brand Lloyds Register, is also relocating from its historic home in London. This too was thought to be a powerful argument in Southampton’s favour.

Test MP Alan Whitehead said the city was “uniquely placed” to house the department,which will govern how Britain’s waterways are managed if the Marine Bill currently going through Parliament is approved as expected.

But marine and fisheries minister Huw Irranca- Davies revealed Tyneside had won out.

“Tyneside was chosen for several reasons he said, not least because of its broad range and good balance of marine interests,” he said. “It has a working port, a busy local fishing industry and businesses including off-shore renewable energy development, all of which fit well with the MMO’s role.”

Councillor Royston Smith, Cabinet member for economic development attacked the Government for “playing politics” with the decision. He said.

“Southampton is absolutely the right place for this: the prime location. This is a politically motivated decision.”