GILLINGHAM have scrapped plans for a new share issue which chairman Paul Scally saw as a solution to ease the club’s financial problems.

He broke the news during a stormy debate live on BBC Radio Kent on Friday when he dismissed the Gillingham Supporters Trust as nothing more than a “talking shop”.

Earlier in the week, the Trust had issued a statement calling for greater clarity over the club’s financial problems and Mr Scally’s suggestion that Priestfield Stadium may have to be sold to meet debts.

They also urged him to call an extraordinary meeting of shareholders so that the full implications could be examined.

In a scathing broadside against the Trust, Mr Scally questioned their motives and accused them of muddying the waters over the financial problems.

He told Trust chairman Nigel Holland: “I’ve given your group the benefit of the doubt. I’ve sat back and watched how it develops and I’ve made no comment as to whether we support it or not.

“The manner in which you go about your business, the things I’m hearing back about the way you are conducting your business, leads me to believe that you’re just another talking shop.

“Regarding the club’s financial state, the situation is that we have a shortfall in cash but we are trading successfully.

“We probably lost £500,000 in the accounts to May this year. In the current trading period we'll probably break even and go into profit next year. That information has been put consistently and precisely in my programme notes and in the letters I’ve sent to 6,000 people.”

He then disclosed that he had abandoned the idea of a new share issue as the response had not been strong enough to justify legal costs of £150,000. It had been hoped a new issue would raise between £3 - 4 million.

Mr Holland, a Gillingham supporter for 30 years, rejected all of Mr Scally’s criticism of the statement. He insisted: “This statement, letter, call it what you will, is in no way critical.

“If you read it, it is not critical. On the contrary it is supportive. We have never, at any time, criticised Paul Scally's performance. We have praised it.

“All we are asking is for more information and clarity. Nothing more than that.

“The Gillingham Supporters Trust certainly cannot run the football club better than Paul Scally and we’ve never said that.

“The Trust is a small group of supporters dedicated to helping the club.”