FEARS that a fresh bid by Portland Port to store volatile fuel could affect the £6 million development of the Weymouth and Portland Sailing Academy were dismissed today.

Academy project manager John Tweed said that with outline planning permission now in place for the new sailing centre development at Osprey Quay, work need not be delayed by the long running saga involving the Mere Tank Farm.

Portland Port's recent application to store increased amounts of kerosene in the Mere tanks was opposed by the Health and Safety Executive (HSE) because they said it would be dangerous to store flammable liquids so close to the sailing academy.

The port's appeal against rejection of planning permission was this week turned down, but the firm has said it will now try again, with a fresh planning application featuring extra safety measures.

Portland Port's Rupert Best says he hopes that the new application, due to be submitted in the next few weeks, will win over the HSE.

He said the application's main changes will include assurances that kerosene would not be stored in tanks nearest to the academy, and that higher bunding (banks) would be placed around the tanks to prevent the possibility of overspill.

Mr Tweed said he did not believe Portland Port's fresh bid would affect the sailing academy development. "The HSE would only give the go- ahead to the new application if they felt that the academy development and Portland Port's plans were compatible," he added.

"The Secretary of State recognises in his decision that it is not a case of having one or the other and we are not dependent on the outcome of the Tank Farm bid."

Port bosses claim their proposals for the Mere Tank Farm are vital for the port's long-term prosperity.

Rupert Best said: "The tank farm plays a vital part in the port and without it the number of visiting vessels would be badly hit. That would mean we would probably have to increase charges, which nobody wants."

Weymouth and Portland Borough Council director of environmental services Richard Burgess said: "We hope Portland Port will talk to ourselves and the HSE about their planned changes prior to submitting any application."