MORE post-public inquiry changes were revealed this week to controversial plans by West Somerset District Council to build a £5.1 million marina in Watchet Harbour.

The authority has already failed to meet an end of November deadline to sign a development agreement which it gave to an inquiry into the project last month.

Later, it abandoned the agreement altogether and instead drew up two new deals with developer Dean and Dyball Developments Ltd.

Now, councillors have decided in seceret not to give away housing land to Dean and Dyball as part of the project.

Inquiry inspector Walter Thrush was told during the three-week hearing the East Quay site would be gifted at no cost to Dean and Dyball.

But now councillors have ruled Dean and Dyball should instead pay an agreed market value for the East Wharf.

However, Dean and Dyball would see the payment returned via an increase in the council's own cash contribution to the marina development.

The extra council money would exactly match the sum paid by Dean and Dyball for the East Quay.

Council treasurer Rod Latham said: "As the receipt from the sale of the land is 100 per cent useable, the impact of this scenario is financially neutral.

"We have been looking closely at the VAT aspects, the capital control implications and issues surrounding the securing and drawing down of grant monies.

"In order to make the project feasible financially, it is structured so the construction of the marina is linked with the development of the East Wharf.

"The council's contribution similarly comprises two elements, a payment towards the cost of the marina and the transfer of council-owned land on the East Wharf.

"It is now clear the capital control and VAT issues could be dealt with much more straightforwardly if the two elements were covered in two separate but linked legal agreements.

"Moreover, the degree of certainty required to guarantee the European funding, which relates solely to the marina element, requires this approach."

Council enterprise and development manager Bruce Lang said the two agreements with Dean and Dyball were expected to be signed at the beginning of next week.

Mr Lang said a meeting with the firm would be held today (Friday) to make sure outstanding issues were settled.

The council has to have a signed marina development agreement before December 31 to avoid losing a £1.896 million European grant.

The signed agreement will be dependent on the decision of Mr Thrush, who will advise Deputy Prime Minister John Prescott whether or not he should allow use of the harbour to be changed from commercial to leisure.

Mr Thrush is not expected to make his recommendation until February.