BOLD new plans have been unveiled to create a series of artificial reefs by sinking old warships off Portland.

The project would boost the economy by breathing new life into the ailing diving industry while also helping to support the angling and fishing trades and to promote nature and education.

A not-for-profit community group called Wreck to Reef Ltd has been set up to realise the vision, a first for UK waters. The group has wide support from the marine industry, local authorities and other bodies.

What started as a plan to boost the diving industry by sinking one ship – modelled on the HMS Scylla project in Whitsand Bay near Plymouth – has grown into a major scheme to create a sanctuary involving in time at least four vessels.

Wreck to Reef has already obtained permission in principle from the Crown for its favoured area of seabed in Balaclava Bay on the north eastern side of Portland, and has presented its proposal to Portland Port, the harbour authority which has jurisdiction for the waters.

Initial project funding has come from two local marine businesses, O’Three and Fathom & Blues, but the hope is to get the Regional Development Agency (RDA) to fund the first phase.

The RDA has poured millions of pounds into regenerating Portland since the closure of the Royal Navy base and was the main financier for the HMS Scylla project in 2004, contributing £1.38 million. That project paid for itself within 14 months in terms of benefit to the local economy, say Wreck to Reef.

The first phase would involve securing an ex-Royal Navy Type 42 Destroyer and preparing it for the 2011 dive season. Discussions are under way but it is understood a ship could cost as little as £100,000.

To help the borough economy it is proposed to moor it in Weymouth Harbour next year where it will be decommissioned and prepared by local companies.

Once it is sunk it is envisaged a working group would be established to manage the project and secure grants to obtain further vessels.

The Dorset 2012 Legacy Board has thrown its weight behind the plans, which it sees as supporting the bid to turn Weymouth and Portland into a centre of international marine and leisure excellence.

Economic impact studies to support the proposal are currently being carried out by Weymouth and Portland Borough Council and Dorset County Council.

Wreck to Reef project co-ordinator Neville Copperthwaite said: “This is an innovative project which will bring increased revenue into Weymouth and Portland for many years.

“It’s the kind of initiative the government is trying to encourage especially in these difficult financial times.”

Mr Copperthwaite said Olympic sailing events at Portland and the buildings being constructed to support it was a great achievement.

He added: “You don’t have to walk very far from Osprey Quay to Castletown to see a very different picture.

“No-one noticed the decline in the diving industry because the focus has been on the Olympics but I think now it’s time to look at the broader picture.

“We could have a world class sailing centre and a world class diving centre alongside.”

Portland Port’s environment manager Sandy Wilson said she was aware of the project but couldn’t comment further.

No-one at the RDA was available for comment.