POOLE'S ambitious plans to regenerate the town centre will need a contribution of £1m each year for five years from the cash- strapped council.

Two weeks ago the Borough of Poole announced an overspend on its 02/03 budget of more than £500,000 and is seeking savings to prevent drastic cuts this year.

Bob Jackson, head of financial services, said resources had been set aside to meet the immediate £1m for the bridge/town scheme.

"For subsequent years that's something members will have to consider against other priorities when they consider the budget," he said.

Cllr Ron Parker, local economy portfolio holder, said: "We have assets. We will be looking at anything surplus to requirements we could dispose of."

Another consideration, which will also go to the council's cabinet next Tuesday, is the government's flagship Private Finance Initiative (PFI).

A condition of the government award of £14.1m for a new lifting bridge was that the council looked into PFI - which would generate more government funds.

Nine options range from a private company operating and maintaining both bridges and possibly looking after highway maintenance or street lighting.

Listed as more unlikely is throwing in car parking or park- and-ride along with the new bridge.

In August council officers will meet Department for Transport officials and should know in September what they require.

This huge regeneration of the town centre and lower Hamworthy, needs £44m in Phase I to open up brownfield sites with road networks, junctions, land and streetscape costs.

Developer contributions plus council funds, PFI or government permission to borrow, will fund the scheme.

Policy director Bernie Topham said: "It will provide several thousand new homes, of which 40 per cent will be affordable housing, jobs and public spaces for community use.

"This is a major opportunity for the town. If it wasn't taken there would be a lot of criticism," she said.