MEDWAY could lose more than 300 jobs this year because it is closing half the wharfs in the port of Rochester.

The stark warning comes from the boss of a firm given notice to quit just two days after it had completed a costly renovation of a riverside berth.

It could also lead to the closure of Chatham Docks, claims John Spencer, boss of marine contracting business GPS.

The council wants to build 1,800 houses on the land, calling it Rochester Riverside. The Government is providing £30million to get rid of pollution across the site, to raise the land about five metres to overcome flood risks, and start development.

But GPS, which runs a fleet of over 80 ships, tugs and lighters, said the loss of five working wharfs will undermine port activities, destroy jobs, end a number of long-established businesses and undermine Government port policies.

Mr Spencer said 300 jobs, 26 businesses and most of the port's working wharves would disappear. His company had a £6.3 million turnover last year, despite spending more than £200,000 to remove the remains of the Q-ship, HMS Chrysanthemum, from its new home.

He said: "While our story is a sad indictment of the council's attitude towards local business, the overall story is even more concerning. The Medway area has a poor record in supporting the maritime sector."

He attacked councillors and planners for not understanding what they were doing. "Nobody in the council has any particular grasp of the problems or the costs associated with what they are planning," he claimed.

He said the River Medway Business Users Association, of which GPS is a member, would oppose the plans.

Cllr Jane Chitty, Medway's regeneration portfolio holder, said GPS had been warned they had a short-term lease. She added: "The council gave them 10 months notice, which is more than anybody else. If we don't push ahead quickly we will lose this government money.

"There are huge problems about decontamination of the land, the need for new flood defences and this cannot be done without huge amounts of Government funding," she said.