English Nature could be entitled to a £105,000 payout as a result of the proposed Portobello treatment works.

Southern Water hopes to build the treatment works on the seafront at Telscombe Cliffs. A public inquiry is taking place to determine the application.Opponents of the scheme have spoken of their anger at English Nature's decision not to object to the development.

Even the head of Southern Water said he was "amazed" at the organisation's stance.

Documents submitted to the inquiry have revealed details of the payout.

The Portobello application includes plans for a geological and interpretation centre.

But if Southern Water needs to develop the site even further at a later date and close the centre down, it would pay out the £105,000. Although the issue has been raised at the inquiry, Bob Edgar, English Nature's conservation officer for Sussex, said he he knew nothing about it. He added: "I don't know anything about this deal. If anyone should do, it is me, as I have been the person dealing with the Portobello inquiry."Jean Talbot, publicity officer for the Campaign for Residents Against Portobello, said last night: "We were all very surprised at the attitude of English Nature towards the whole project. We are angry at the discovery of this compensation deal."If English Nature says it does not know anything about this, it shows one hand does not know what the other is doing.

"Heaven help future conservation in Sussex.

"We hope the compensation scheme will never happen as we all want to see the Portobello expansion scheme at Telscombe Cliffs thrown out."

Geoffrey Theobald, Conservative opposition leader on Brighton and Hove Council, said he was "appalled" by English Nature's stance.

In its inquiry evidence, English Nature said Southern Water's plans for Telscombe Cliffs could "enhance the educational value of the site".

Several parties of students and geologists visit the site each year.

Southern Water has said it will provide the geological and interpretation centre to give students and geologists some form of access to the unique cliffs.

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