Wirral Council could be dealt a £20m bill if they go back on a development deal for a millionaire’s golf course, housing and luxury hotel.

The revelation was made at an explosive full council meeting that saw calls for an investigation into ‘corruption and incompetence’ over the legally binding contract, details of which only came to light last week.

Documents have revealed the previous Labour administration signed a development framework agreement that gave private developers Nicklaus Joint Venture Group (NJV) exclusivity to put forward plans for a Celtic Manor golf resort on a floodplain in Hoylake.

It has caused fury amongst opposition members who fear this now ties the local authority to the plans, which have been subject to borough wide protests.

At a fiery full council meeting on Monday night, conservative councillor David-Burgess Joyce said: “Something in the state of Denmark smells slightly. We have a situation where the council can’t withdraw. We are committed.

“The cheap scam double glazing man has been to our house, we have signed on the dotted line and we are no longer able to cancel the contract, and I would like to know what the council leader intends to do to formally investigate either corruption or incompetence in public office.”

His comments were met by a round of applause from members of the public- who were threatened with being kicked out of the council chambers on a number of occasions for jeering at elected members.

But it infuriated new council leader Pat Hackett, who runs the council with a minority Labour administration.

He accused his Tory rival of launching a ‘smear’ with no evidence to support his claims, asking him repeatedly to retract the comments.

But Burgess-Joyce refused to take back what he said, adding: “The question I’m asking is if there isn’t corruption and there isn’t incompetence then you will find that out and the people of Wirral will be happy with the answer and I will happily come back here and apologise, but until that time something is smelling in Wirral”.

What is a development agreement?

A spokesperson from Wirral Council said the development agreement was an ‘exclusivity agreement’ that Celtic Manor are the only developers who could put forward a development on that land.

Part of it included the council making a decision on whether to invest in the scheme or not. That decision was made by the cabinet on July 8, who chose not to loan NJV £26m to fund the project.

Meetings that led to that decision being made were held in private because of the ‘commercial sensitivity’ of the plans.

But last night, Lib Dem councillor Alan Brame revealed councillors had been told the local authority could be liable to pay ‘£15 to £20m’ if they back track on the deal.

He said: “What we know now is the vast majority of people in Wirral do not want this scheme. The problem is we are tied into it because of this development agreement, and we have been advised that should the council renege on this agreement, that we stand liable potentially to charges of about £15 to £20 million pounds. That is a huge decision which councillors have to weigh up. “

Cllr Brame was then warned to ‘be careful’ by members after the shock revelation.

But the defiant councillor continued: “ I think it’s time we are open and people know what the situation is. Too much is done in secret. This all hinges on the fact we are a cabinet system that keeps the information to itself and that is why why most members on this side of the chamber are keen to change the way Wirral is governed and to move to a committee system. so things are not done behind closed doors. When it comes to a decision like this the people need to know what’s going on. “

Calls to change how Wirral is governed came after Labour lost its overall control in May’s local elections, leading to former leader Phil Davis stepping down.

It was his cabinet who made the decision to enter into the development agreement and to consider funding the scheme, which they said could bring jobs and give a boost to the local high-street.

Although the new cabinet agreed not to loan money for the £200m scheme, it could still go ahead if developers seek funding from elsewhere.

Last week a spokesperson from the council insisted the development agreement does not guarantee NJV permission to build on the land, with any decision being subject to the full planning process.

But many opposition members are not convinced.

Putting forward a motion calling for openness and transparency on the next intended steps, Conservative Councillor Geoffrey Watt branded the situation a ‘sorry saga’ that has effectively committed the council to a ‘done deal’ with no clear exit strategy.

This was passed, along with a Lib Dem motion that all elected members be kept fully informed of any further discussions with the developer about their intentions moving forward.