A CUT of £500 million to be pumped into waterways nationwide could be the key to the regeneration of Radcliffe.

The canal through the middle of the town is one of just nine projects across Britain to be given priority status for major restoration by British Waterways.

Around £32 million is needed to reinstate a 12-mile stretch of the Manchester, Bolton and Bury Canal to repair locks, excavate and waterproof filled-in stretches and negotiate new obstacles such as the M60 motorway.

The route links Bolton and Bury to the River Irwell at Salford, and it is hoped that restoring it to its Victorian grandeur will spark the regeneration of Radcliffe.

Water Street, where a new bridge was installed across the dormant canal, will be in particular need of attention.

Work is expected to begin late next year, with completion planned for the end of 2005.

Mrs Margaret Fletcher, chairman of the Manchester Bury and Bolton Canal Society, said: "It is about making sure that there is a navigable route along the canal.

"It could bring a lot of tourism to Radcliffe. Other towns like Stalybridge with the Huddersfield Narrow Canal have been transformed.

"If Radcliffe plays its cards right it could really benefit. Places like the Royal Oak are right on the canal and could pick up a lot of trade, as could shops nearby."

The society was formed in 1987 with the aim of persuading authorities to restore the route, which was closed in the 1960s.

The canal opened in 1796 and saw its heaviest use, from goods narrowboats and passenger packet boats between Bury and Manchester, in the 19th century.