THE city council handed over £125,000 to the organisers of the Liverpool Boat Show – a month before they pulled the plug on the event.

Officials are now in negotiations to recover some of the money paid to London-based Marine Industry Events (MIE) in January.

The money was handed over as part of the city council’s agreement to sponsor the 10-day event, which was expected to generate millions for the local economy.

MIE cited the recession trading conditions and the recent London Boat Show’s poor performance, when it pulled the plug on the Liverpool event in February.

James Gower, event director of MIE, said the money had been put towards installing new pontoons in the Albert Dock complex and that the firm had incurred significant losses because of the cancellation.

Last night deputy leader of the Liberal Democrat opposition Cllr Flo Clucas said the council should have been more careful with taxpayers’ cash.

But Labour’s cabinet member for culture Cllr Wendy Simon insisted the money had “not been wasted” as new facilities were now in place for the long term.

The defunct boat show is being re-branded as the “Spring on the Waterfront” and will go ahead on the same dates – April 29 to May 8 – as a scaled down form of what was originally planned.

Last night Mr Gower said: “The funding for the boat show included our own personal investment and has left a legacy for Liverpool.

“There is now effectively a brand new marina [at the Albert Dock complex].

“It is there in place and ready should anyone else want to come and run an event, and it cost substantially more than the investment Liverpool City Council put in.”

British Waterways also contributed £500,000 towards the new pontoons.