ENVIRONMENT Secretary Elliot Morley has agreed to sign up for the remaining cost of the multi-million pound sea defence scheme at Scarborough.
Councillor Eileen Bosomworth, leader of Scarborough Council, said: "There has been a lot of hard work and negotiations behind the scenes throughout this difficult time and I am really pleased that we have been able to reach this point.
"The coastal protection scheme will safeguard the town and its assets for many years and I am firmly of the opinion that, in the long term, it will be judged as a very positive and visionary scheme for Scarborough."
The work has involved building a sea defence scheme around the Royal Albert and Marine Drives and along the 250-year-old East Pier to protect the harbour.
Reports indicate that contractors Edmund Nuttall Limited had been seeking an agreement over an alleged cost overrun of £27m, after the price doubled to about £54m after delays due to unexpected ground conditions, limits on working hours and cracks found in the accropodes - large concrete blocks - used to build the defences.
However, the scheme has been dogged by controversy as a result of criticism of council officers by the audit commission for awarding a consultancy contract without going out to European tender.
Coun Bosomworth said: "In order to allay the concerns of council tax payers, I am now able to confirm that grant money has been approved and received from Defra which will enable the council to make a full settlement to the contractors."
She said negotiations were continuing over remedial work on the accropodes.
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