LYME'S harbour slipway is in danger of a "catastrophic collapse" leaving the resort's lifeboat high and dry, a report has warned.

The sudden unexpected loss of the launch area would force the RNLI to cease operations- putting lives at risk, say officials.

The worst case scenario was spelled out to West Dorset councillors last week when they agreed to back a recommendation to press ahead with an urgent replacement - despite a massive rise in costs.

Shelving the project was one option put to the district's Environment Overview and Scrutiny Committee when members heard the bill for their approved scheme would exceed the original budget by a thumping £350,000.

Now the district council is faced with having to downgrade the design and ask its funding partners - the RNLI - to stump up more cash.

The committee was told that since the original plan for a new slipway was drawn up in 1998 construction costs have risen by 35 per cent.

It means the council's contribution must now rise from £180,000 to £245,000 and the RNLI's share from £150,000 to £220,000.

Meanwhile talks will be held with WEB Construction who produced the lowest tender at £788,186 in a bid to reduce their bill to nearer the £500,000 that will now be available for the new launching area.

The committee was told this would mean redesigning the slipway scheme to a more basic level - requiring fresh approval from the planning authority and English Heritage who had already backed the original design.

But the committee was told that despite the extra money and design modifications the option to abandon the project altogether was definitely not recommended.

"The old slipway has reached the end of its economic life and needs to be replaced as soon as possible to avoid a catastrophic collapse," the report warned."

There was a "very high risk" that it's sudden unexpected loss would cause the RNLI to cease operations at Lyme - putting lives at risk.

Recommending the scheme proceeds Coun David Tett said: "Doing nothing is not an option because we have a statutory duty and responsibility.

"Human life must not be put at risk either by the collapse of the existing slipway of by failing to construct a new one and the attendant cessation of RNLI operations in Lyme."

The committee agreed that to avoid disruption to harbour users the building works should take place from October until March 2004. But experts warn that storms could delay the project.

"If it were to run into Easter 2004 holiday period - April 9-12 - and the construction were not sufficiently advanced to allow at least part use of the public slipway facility then this would cause considerable inconvenience to harbour users and loss of revenue to the council," the report points out.

During the works the lifeboat will be given a temporary new launch site nearby.

The recommendation to proceed with the slipway scheme will now go before the district council's executive committee for approval.