BECAUSE of council delays, Medway has lost out on a major international event which would have brought an estimated £10 - 12 million to the area.

The Tall Ships Race was to have come to Medway in 2005. But it will now go to Newcastle because the council's cabinet failed to give approval in time.

By the time it finally gave the go-ahead, on Monday, and council officers had faxed the formal documents to the Sail Training Association, Newcastle had beaten Medway to it.

The bungle has sparked a fierce political row. Labour's Cllr John Shaw said he was stunned Medway Council's cabinet had missed out on a golden opportunity to generate between £10million and £12million for the local economy.

He said: "The cabinet kept saying the decision needed to go to full council because initially they would have had to pay out around £60,000. The whole event could have cost up to £600,000, but in return millions of pounds could have been generated.

"But they kept delaying, which was absolutely ridiculous. Because they didn't sign the heads of agreement in time, Newcastle jumped in with an offer and by the time our cabinet signed all the paperwork they were told it was too late."

Medway would have been the third port of call for the race, which is due to visit Waterford in Ireland, Cherbourg in France, Frederickshaven in Denmark and Amsterdam in the Netherlands.

This year Portsmouth acted as host and said for every pound invested, they got about £10 back, owing to 80 tall ships and many support vessels visiting the city.

Medway was considered a strong contender because it has a population of 253,000 and is near to London.

Cllr Paul Godwin, leader of the Labour group, said he was embarrassed by the bungle.

He said: "The cabinet could have made the decision at any time because they had the delegated authority. I do think we were being rushed into a decision, but it was up to them and I do feel embarrassed to be honest."

A spokesman for Medway Council said they had simply been "pipped to the post". Cabinet leader Rodney Chambers said: "It is very unfortunate but at least we have been able to demonstrate that we are capable of holding such a major event.

"The shortlist came down to Newcastle and ourselves and at the end of the day they were in a slightly stronger position than we were."