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The wreck of the Solway Harvester could be moved to Ramsey and sold as scrap.
The plan was revealed in Tynwald today by Transport Minister David Anderson.
Seven fishing crew lost their lives when the boat went down off the Manx coast almost nine years ago.
The delayed inquest reached an accidental death verdict a fortnight ago.
Now, the vessel's owner Richard Gidney has been given until the end of the month to sign a 'transfer of ownership' document.
It that doesn't happen, the boat will be seized under the Harbours Act.
Mr Anderson told Tynwald a decision had been made on the Solway's ultimate fate:
"The department's current intention is to have the Solway Harvester scrapped at Ramsey Shipyard.
"The families of the crew have been advised of the department's intention and concur that this is the preferred option for disposal.
"Preliminary discussions have been held with the management of Ramsey Shipyard and they advise that it is feasible to carry out the scrapping expeditiously on the slipway, and behind screens in order to minimise the visual impact of the work".
(Image: The salvaged Solway Harvester at her present berth in Douglas Harbour).
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