Harland & Wolff has been given the final go-ahead to sell a portion of its land to safeguard the future of the ailing shipyard. The Minister of Regional Development, Mr Peter Robinson, announced yesterday that Belfast Harbour Commissioners would conclude the agreement with developers to begin work on the 80 acres no longer needed by the company for shipbuilding.

The firm will use money from the sale to restructure but, despite the deal, the jobs of 144 workers currently on notice are likely to go.

Responding to the announcement, Sir Reg Empey, Minister of Enterprise, Trade and Investment, said it meant Harland & Wolff could now move ahead with the implementation of its business plan.

"The company will have the opportunity to become more compact, better focused and have the best chance to succeed in a competitive market," he said.

Titanic Quarter Limited (TQL), the shipyard's sister company established to develop a 105-acre site on Belfast's riverfront, welcomed what it said was a "forward-thinking" decision that served the public's interest.

TQL will now conclude an agreement with the Harbour Commissioners to regenerate and develop the new site.

Commenting on the deal, Sir David Fell, TQL chairman, said it was a public/private partnership between two parties committed to revitalising this part of the city. "Our vision for the birthplace of the famous Titanic is the creation of a new complementary city centre quarter," he said.

"The concept of a new mixed use city centre quarter, located on one of the largest waterfront sites in Europe, is one of the most exciting opportunities ever seen in Northern Ireland."

Mr Fell hoped the Titanic Quarter might play a part in boosting Belfast's bid for European Capital of Culture in 2008.

Shipyard chief executive Mr Brynulv Mugaas said the announcement signalled the beginning of a new era for Harland & Wolff. - (Additional reporting PA)