UP TO £10 million could be shaved off the cost of transforming the sealink from the Isles of Scilly by switching the mainland base to Falmouth from Penzance, the Western Morning News can reveal.

The news nearly a quarter of the cost of the project could be saved comes as councillors on the islands voted to fund a feasibility study into the change.

The decision was taken amid fears the controversy raging in Penzance over a new ferry terminal could cause funding to time out – cited as "disastrous" for the islands.

Philip Hygate, chief executive of the Council for the Isles of Scilly, said the stakes were high and it was a serious move. "I am not interested in scaremongering," he said. "We are intelligently looking at another alternative."

Mr Hygate said Penzance was the preferred terminus for the ferry between the UK mainland and the Scilly Isles and plans for an massive upgrade of facilities for the boat have been endorsed wholeheartedly by the island community.

However, in Penzance the matter remains unresolved with fierce debate over two alternatives on the table.

With £44 million worth of funding only available for a limited time, Mr Hygate said the islands had to protect its community and investigate an alternative destination for the ferry.

"We would be reckless if we didn't have a reasonable fall back position," he said.

He conceded the journey time from the islands to the mainland would increase by as much as 45 minute but, he said, there was potential to shave £10 million off the cost as Falmouth docks did not require the major capital works necessary at Penzance.

With such a large saving, there was a real argument to specify a faster boat under a contract to run the ferry service which is currently out to tender, he said.

"To be honest, Falmouth is looking more attractive," he said. "The advantage is that good quality dock facilities are already there. There is lots of potential for business growth because it's a bigger tourist catchment area.

"Falmouth also gets cruise ships in and there is the chance to link up with them and get people out to the Scillies."

A longer journey time could be turned into a "coastal cruise" to take in the beautiful scenery en route to the islands. It could even call into a number of places, including Penzance, he said.

Mr Hygate and the chairman of the Scilly Isles council, Julia Day, have already visited Falmouth docks where he said they received a warm welcome.

Harbour Commissioners who control the port of Falmouth have also been "keen to talk", said Mr Hygate.

A spot next to thriving Discovery Quay and the National Maritime Museum, which becomes vacant in the next few weeks, has already been identified as a potential home for the ferry.

Cornwall councillor for Falmouth, Mike Varney, said he did not wish to undercut Penzance in a bid for the ferry. But he said if Penzance "does not get its act together" in time, Falmouth would welcome the prestige of the link.

"If Falmouth was the only option to keep this service, we would certainly be very supportive," he said.

At a meeting on the islands, councillors unanimously voted the fund the £3,500 "scoping" document, a preliminary to a more sweeping feasibility study. Members were genuinely concerned that ongoing discussions in Penzance could cause the project to miss its funding slot.

Coun Day said: "This would be disastrous for the Scilly Islands.

"It's no secret that whoever wins the next election will be making spending cuts and we just do not know when, if ever, this money will be available again."

The snail's pace of progress has already soured relations between the Scilly Council and local MP Andrew George.

Last week, councillors voted to bypass Mr George in any future discussions at ministerial level because they felt his views were out of step with their own.