A NEW parking row has broken out amid revelations that South Hams Council is renting out precious new parking spaces to the highest bidder – potentially handing them over to rich second home owners.

The space for around five new parking spaces off Victoria Road, Dartmouth, has become available following the demolition of the old Ford Valley leat aqueduct.

The district council plans to let the spaces through a sealed tender process so that it can get the best deal for the valuable new spaces.

That decision has infuriated Dartmouth businessman Phil Hayward who declared: 'Basically it means that if I have a lot of money and I can outbid the next bidder, I get the space. It won't matter if I live in Hong Kong and only use the space for one week in the year. It won't matter a jot.'

And the former Royal Marine, who runs a letting agency, added: 'It's outrageous for the people of Dartmouth who live here and need a parking space.'

But a district council spokesman said: 'Sealed tenders are still considered to be the most equitable and transparent ways of ensuring everybody has the opportunity to bid.'

South hams Council spent £228,000 in 2011 to pipe the Ford Valley leat underground so that it could eventually do away with the crumbling Victoria aqueduct which ran on pillars for more than 100 yards along the rear of homes.

The leat was in such poor condition that there were fears that it could collapse and flood nearby homes.

Work finally began on demolishing the structure a fortnight ago.

The demolition has freed up a small area of land at the bottom end of the old aqueduct where there is room for around five parking spaces.

This week the district council was still working out exactly how many cars it can get on to the site.

Mr Hayward warned that people with the most cash will end up getting the spaces – whether they live permanently in the town or not. He pointed out that parking was a major issue in the town.

'They could look at a fairer system based on residents, how long they have lived in the town and whether they have any other means of parking and also based on the number of cars per household' he said.

'That is not what is happening. It just seems to be a money grabbing thing for the council.'

He pointed out that he had lived in Ford for the last 15 years.

'I am going to put in a bid but I may well lose out to someone living in London or Birmingham,' he added.

The council spokesman added: 'As a public body we do look at every case on its merits but as guardians of the public purse we do have to be efficient and effective at getting best value for money.

'We can take special circumstances into account and where there is an overwhelming wider public benefit, we will dispose of land for as little as £1, as is the case with disposals to housing associations to aid the delivery of affordable housing projects.

'However, when a situation like this arises, it is only right to ensure best value – we would be rightly criticised had we given a space to a local businessman at a rental figure that was below what another party would have paid.'