Councillors will now decide whether to go ahead with the plan
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A multi-million pound plan to improve transport links to the Isles of Scilly has been give conditional approval by the Department for Transport.
It follows a bid for £23.84m in government funds to upgrade St Mary's and Penzance harbours and buy a new freight and passenger boat.
Another £6.5m would come from European Objective One or Convergence funding.
Current boats serving the freight and passenger needs of the Isles of Scilly are at the end of their working lives.
The scheme would see the passenger ferry Scillonian III and the freight ship Gry Maritha replaced with a £17.5m combined passenger and cargo vessel which would then be leased back to the ferry operator, the Isles of Scilly Steamship Company.
Cornwall County Council will now make a firm decision whether to proceed with the project following the announcement of the Department for Transport's funding.
The scheme is managed by the Isles of Scilly Route Partnership which represents local authorities, mainland link transport operators and key landowners.