Fears have been raised that a multi-million marina plan for one of the West Highlands' yachting hotspots could triple in size threatening jobs at existing operations.

Dunstaffnage Marina has raised concerns over the new £3.1m marina development within nearby Oban Bay being led by Argyll and Bute Council. Due to be opened this summer, it is billed as a 36 berth facility but appears it could accommodate around 100.

According to Ewan Bell, Chairman of the Dunstaffnage Marina company, there are over 1,000 berths available up and down the coast within just 25-miles of Oban and none of these operators are full so there is no demand for another facility of this size.

He said that the council's £3m investment raised State Aids issues as it would displace other businesses. His own company employed 20 full-time permanently and more during the sailing season.

He said the council said it would be "a safe step ashore facility for cruise ship passengers, kayakers, day trip operators and leisure vessels." But having seen the business plan through Freedom of Information, he said "this development is clearly intended to be something much bigger and it looks to be far more likely to be 100-vessels along with super yachts. Given that £3.1 million is the supposed cost it appears to be somewhat disproportionate for only 36-boats!"

He said the council business plan was flawed, quoting seven years old data which “cannot be relied upon.”

He said the council had calculated that the Oban marina would be full every day and night for a six month season, which was "somewhat fanciful" given conditions on the west coast. The council had identified a local operator to run the marina even before any tendering process.

Mr Bell said:"We have invested heavily in the marina at Dunstaffnage with staff and training and as recently as last summer opened a new £750,000 berth facility to attract super yachts from all over the world since the smaller boat market is at saturation on the west coast. Clearly, it will be the case that local operators will suffer financially in what is already a short and difficult summer season."

His comments were sent to the council and a spokesman responded:

“The council is building short stay berths for visiting yachts that will bring economic benefits to the town and surrounding area, which has widespread local support. "

He said it would contribute to Scotland's marine tourism strategy, “Awakening the Giant”, which had identified the need for more berthing capacity in this area. It was backed by all the main Scottish Development Agencies.

He said "The creation of 36 finger-berth pontoons and a concrete floating breakwater will provide flexible short-stay capacity." It was designed to complement existing facilities and would help realise the council's long-standing ambition of making Oban a focus for the whole west coast marine industry.

“Our investment of over £3m in the transit berthing and associated maritime visitor facilities will make it easier for marine visitors to come to Oban and will facilitate easy access to Oban for kayakers, yachters, cruise ships and tour operators.”

But Argyll and Bute MSP Mike Russell said it appeared the council never thought about damage to existing businesses "some of whom have invested very heavily in recent years including Dunstaffnage which recently built a facility for super yachts to add to its existing offering."

He said belatedly the council had been forced to admit that there would be a negative effect on the five existing local marinas " but they can’t – or they won’t – say how long it will last and how deep the downturn will be.

"Consequently it appears as if the council is using public money in a way that may actually lead to job losses. They are also spending much more than any marina thinks they need to spend for the number of berths they claim to be providing. We need some answers to all this, and quickly.”