AMBITIOUS plans to restore the northern reaches of the Lancaster canal are not just a pipedream - but an economy-boosting reality which will go ahead.

That was the verdict last week as the first financial piece in the multi million pound canal jigsaw fell into place.

The Northern Reaches Canal Restoration Group has secured the £750,000 it needs to push ahead with planning and design work for phase one of the £60 million project.

It wants to launch a massive three-phase development which would see the reopening of a 14-mile stretch of canal from Kendal to Tewitfield, near Carnforth.

News of the cash backing came at a packed out public meeting at Kendal Town Hall last Wednesday, where restoration group chairman Hal Bagot said he was 'delighted'.

And he is sure the creation of a 'new' canal will provide a big boost to the economy of the area.

Mr Bagot said it was estimated that phase one would cost £13.5million and be completed by 2009.

The plan envisages a marina at Canal Head in Kendal which would attract a mixed development of waterside cafes, pubs, shops and even housing.

He told the meeting he hoped the canal corridor would become a magnet for big business.

The second stage of the canal project would continue south to Millness, at a cost of a further £21.5 million, while the final stage would re-open 10km of the route to Tewitfield and the rest of the national canal network.