CONFUSION over merger plans means Liverpool's new Local Enterprise Partnership is in chaos – before it has even started to operate.

The Liverpool Local Enterprise  Partnership (LEP) is supposed to replace  the Northwest Development Agency by merging into one organisation with tourism  and investment body, The Mersey  Partnership (TMP).

But the deal has collapsed leaving the  Lorraine Rogers-led TMP with an  uncertain future.

It is not clear whether Ms Rogers and  TMP chairman Rod Holmes will be able to  work together in future, as the merger was  being pushed by Mr Holmes.

TMP also faces a further  uncertainty due to its  high level of  public funding. It will hold an emergency board  meeting today.

The LEP, made up of key  players from the public and  private sector, currently only  exists in a “shadow” form.

It cannot get on with doing its  job of promoting job creation  and economic development in  Merseyside until it is officially  up and running.

The LEP’s board had already  signed-off on the merger, but ultimately  TMP blocked  the deal.

It is understood talks collapsed over the  new staffing structure and who exactly  would have a job in the new set up.

A source said the top priority at the  moment was to ensure that Robert Hough,  the chairman elect of the LEP, does not walk  away due to the inability of Merseyside to get its act together. The former Liverpool Airport boss is  understood to be frustrated at the lack of  progress.

A spokesman for Liverpool LEP said  talks had lasted three months.

“Given the need to ensure discussions  did not draw out excessively, a timescale of  January 31 was set to conclude  negotiations.

“It is disappointing to report  that a future framework,  although approved by the LEP  board, has not been concluded  between TMP and LEP within  the timescale anticipated. To  that end LEP has agreed with  TMP to withdraw from any  further discussions on this matter, which has now been drawn to a close.”

A further announcement  will be made soon, he  added.