HUNDREDS of new jobs could be created to help tackle the looming recession under updated plans for the canal regeneration project.

Stroud District Council hopes 600 permanent positions will be generated and the construction work will stimulate business for local contractors.

The authority also claims the economic crisis should reduce the project’s costs.

Speaking at a press conference at Ebley Mill on Monday, Nigel Studdert-Kennedy, cabinet member for regeneration and tourism, said: "We think we’ve got it right in terms of what the community is looking for.

"We think it’s right in terms of both protecting employment and creating new employment.

"The fundamentals for doing it haven’t changed – the financial arrangements are better than they were.

"I would like to think all the councillors will support it."

The updated plans concern phase 1A of the project between Saul and Brimscombe Port.

SDC would lead an estimated £17.5million regeneration between Ocean and the Iron Works, and also create a multi-user towpath between Saul and Ocean.

Meanwhile a private developer would take over responsibility for an estimated £7.9million redevelopment of Brimscombe Port.

Officers have confirmed several developers have shown an interest.

"We’re very keen, where the appropriate conditions have been met, to use local businesses to do the construction work," said Cllr Studdert-Kennedy.

The council hope the Brimscombe development, which is now ‘employment-led’ instead of 'housing-led' as was previously planned, would create half of the 600 jobs expected to be generated by the project.

Other estimated benefits for the district include £531,000 of annual income, £83milion of private sector investment and protection heritage and wildlife.

Cllr Studdert-Kennedy also hopes the construction costs would be reduced by the looming recession.

"Nobody in their right mind are going to take the first tender they’re offered when people are being laid off left and right in the construction industry," he said.

"The market has become competitive."

SDC has already committed £1.35million to the project and needs to further earmark about £2.34million to receive a grant of nearly £12million from the Heritage Lottery Fund.

The authority plans to raise all the extra money by the sale of the former Electricity Board depot in Dudbridge and the Rackfield car park in Dursley.

Suggestions to borrow some of the funds have been scrapped.

SDC chief executive David Hagg said: "This is almost a once in a lifetime opportunity.

"The plans have been looked at independently and there’s a fairly substantial capacity for risk and inflation provision in there."

He added the involvement of a private developer would reduce the council’s financial liability.

But in a report presented to councillors, head of finance Sandra Cowley warned there was no other capital income if costs soared.

She also advised against borrowing until the £3million deposited in an Icelandic band was recovered. The updated plans allow the council to suspend the project if costs soar.

A full council meeting will decide whether to go ahead with the project on Tuesday, December 16.

* See the final decision on Wednesday, December 17 at stroudnewsandjournal.co.uk