by political editor Paul Francis

A company set up to bring jobs and businesses to east Kent has had to be given an urgent cash injection of nearly £200,000 to ensure its survival, it has emerged.

East Kent Opportunities, a joint partnership set up by Kent County Council and Thanet District Council as a public company, has received a loan of £190,000 from the taxpayer after facing financial difficulties caused by the recession.

A previously confidential report that has now become public reveals that KCC and Thanet have stepped in to provide more funds to ensure it remained "a going concern."

The report, due to be discussed by Thanet council’s Conservative cabinet next week (April 29), discloses that the money has already been agreed but will have to be re-paid by next year.

It says that the money needed to be paid urgently "to ensure the organisation remains a going concern."

The development is likely to raise questions about the long-term viability of EKO and has already prompted calls from opposition parties for the two councils to explain the background to the loan.

EKO was set up in 2008 at a cost of more than half a million pounds and was charged with the job of steering the regeneration of Eurokent and the Manston Business Park sites in Thanet.

It appears that one of the reasons for the loan is that EKO had been expecting private developers to meet the costs it has incurred for developing planning applications for the two sites.

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But the recession has seen little interest in the two sites and the downturn in the market has meant that "capital receipts have not materialised."

EKO was set up in 2008 as a limited company. In addition to set up costs of £519,000, it had running costs of £473,655 in 2008-09.

A statement issued on behalf of KCC and Thanet council said: "Kent County Council and Thanet District Council are looking to the future of Thanet and remain committed to the success of East Kent Opportunities.

"We are pleased with the progress being made towards its aim of helping to create employment opportunities and diversifying the Thanet economy. Like any company, we can only achieve this by investing in it to achieve the long term goal of prosperity for the region and both councils are working closely together to realise these important aims."

David Evans, Executive Director of East Kent Opportunities, said: "We are moving towards delivering the partners’ objectives for the development of Eurokent and Manston Business Park sites in line with our shared vision for the area."

The move to designate the Eurokent site for housing instead of business development has proved contentious, with some querying the need for more residential development when there is existing permission for 1,000 homes near Westwood Cross.