THE Government has pledged £300,000 to help with the regeneration of the historic Manchester Bolton and Bury Canal .

The cash injection will finance a tunnel to carry the canal under the final section of the Manchester and Salford Inner Relief Route which is now being built along the north bank of the River Irwell in the city centre.

Without the tunnel, which will be next to Prince's Bridge in Salford, the new road would have completely blocked the path of the 15-mile canal, making any restoration virtually impossible.

This decision, says British Waterways, reflects the importance now attached to waterway restoration as a catalyst for regeneration, bringing social, economic and environmental benefits to urban and rural areas.

Dave Fletcher, chief executive of British Waterways, said: "The Government recognises that road building schemes should not threaten viable canal restoration projects and today's decision is a crucial milestone." Derek Cochrane, British Waterways' North West regional director, added: "I am delighted the Government is supporting Manchester's canals in this way.

"We believe that restoring this historic waterway will act as an important catalyst for further regeneration in Salford, Bolton and Bury."

He continued: "I am sure this decision will be welcomed by everyone who has an interest in the future of our waterways.

"The news is a tribute to all those who have been working so hard to restore the Manchester, Bolton and Bury Canal to its former glory."

This canal was opened in 1796 to link Bolton and Bury to the River Irwell and was mainly used to carry coal, timber and passengers to the city centre.

However, the advent of the railways led to a drastic cut in canal traffic. By the beginning of the last century, the waterway was declining rapidly and was finally abandoned in 1961.

Efforts to restore the canal intensified in 1987 when the Manchester, Bolton and Bury Canal Society was formed.

The Society and British Waterways are now driving the restoration forward in partnership with the three local authorities in the area and the plans are developing well.

Commenting on the £300,000 investment announcement, Margaret Fletcher, Society chairman, said: "We are delighted with the news, which means that the benefits of regeneration can be brought to Salford, Bolton and Bury.

"We are pleased that a positive outcome from our 14 years of campaigning is now on the near horizon in that Manchester, Bolton and Bury Canal will link to the other restored and rejuvenated canals in the Manchester area."