Community leaders in Newhaven see proposals for a £10 million, 18-storey skyscraper as the latest symbol of a town on the up.

They are confident £30 million-worth of investment has dragged the town out of the doldrums towards a brighter future.

The town's regeneration during the past decade could soon have a towering new symbol in an 18-storey landmark skyscraper.

We revealed yesterday how developer Sign of Four wants to build the 240ft steel and glass building in Newhaven town centre.

The £10 million scheme would feature 22 new homes, offices and a pedestrian walkway linking Newhaven High Street to the station and ferry terminal.

Community figures have been cautious about discussing the merits of the plans, particularly whether a skyscraper would be suitable for Newhaven. But the fact the proposals have been drawn up have been taken as a resounding endorsement of Newhaven's prospects.

Marek Lorys, chairman of Newhaven civic society Turning The Tide, said: "I'm a little concerned about how the building will fit into Newhaven. But it is wonderful someone is thinking on such an expansive scope about investing here."

The announcement of the skyscraper plans, called 1 Bridge Street, came as the town faces a crucial stage in its development.

The Single Regeneration Budget (SRB) funding which has motored Newhaven's renaissance since 1996 runs out in March.

It was awarded in response to concerns about high unemployment, poor education performances and low business interest in the area.

The Government cash, amounting to £6.4 million, has paid for schemes such as the Denton Island Training and Business Centre at a previously-derelict site.

The SRB backing allowed another £30 million to be raised from other sources. The money has helped fund an £11 million development at the West Quay, with a similar scheme earmarked for the Railway Quay.

Modern fishing facilities, a fish market, walkway and cycleway were opened at the West Quay in April. Work on 46 houses and 20 flats is due to be finished by the end of the year.

Visitor facilities at Newhaven Fort have been upgraded to attract more interest and infrastructure has been improved at the Avis Way Industrial Estate.

The town could also be looking at its own property boom. Some 450 new homes are proposed for Railway Quay, with other properties planned for the West Quay, Court Farm Road and Harbour Heights.

Sarah Ireland, programme manager for the Newhaven Economic Partnership, said: "Properties are being built and they are being occupied at a rate of knots.

"Newhaven isn't competing in the same league as Brighton. But there is a new confidence here which is inspiring people to move into the area."

Newhaven county councillor David Rogers said: "The Sign of Four proposals are another example of people taking much more interest in the town than in the past.

"Newhaven is halfway between Eastbourne and Brighton, with very good transport access to both.

"We're attracting more people here but what is just as important is keeping young people who have grown up here. In the past they may have felt they needed to move away to get a job once they finished their education."

A key factor in the town's resurgence has been the change of operators at Newhaven ferry terminal. In January 1999 P&O Stena announced it was going to scrap the ferry link to Dieppe after 173 years.

But Hoverspeed stepped into the breach with its SuperSeaCat Two ferry.

Last year French consortium Transmanche bought most of the port for £15 million and has invested in improving the port's facilities.

The newly-formed Newhaven Strategic Network (NSN) last week published its ambitious wish list for the next ten years.

Among the ideas are:

A port access road connecting to the new Eastside Business Park and allowing the development of an outer port
A modernised railway station with bus, taxi and car parking facilities
A country park along the riverbank from Lewes Recreation Ground towards Piddinghoe
A high-quality housing development at North Quay, along with better mooring and boat facilities to boost tourism.

The NSN will be looking towards "single-pot funding" from the South-East England Development Agency, as well as business and county council investment.

Mr Lorys believes there is still plenty to be done.

He said: "It needs physical refurbishment, as well as some kind of stimulus for the retail activity we haven't yet put our finger on.

"There's plenty here which people often don't realise - the marina, a diving school, the fishing charters, Paradise Park and the beach. They are excellent but we have to offer our visitors a bit more. Again, a lot of work has been done on the business parks but we need to make them look better to attract visitors."

He would also like to see the town's artistic community given more opportunity to display talents.

At public exhibitions last week, there was strong support for improving pedestrian and cycle access in the town, boosting public transport and improving activities for youngsters.

One possible cloud on the horizon is the threat of an incinerator at the North Quay, which campaigners have vowed to fight.

Penny Shimmins, programme manager for the Newhaven Community Development Association and who chairs the NSN, said: "People are feeling uneasy that it would negatively affect the town and the developments.

"But still there is a real positivity in the area. A few years ago Newhaven had got very tatty. Now people feel something can be done to change things."