Plans to splash out almost £5m on a new boathouse for the historic schooner Peggy will be laid before Tynwald next week.

Manx National Heritage insists it has always been its intention to return Peggy to public display in Castletown - and a ’stunning’ new exhibition centre is the most viable option.

But the plans were rubbished as ’fantasy’ earlier this year by the then chief minister Howard Quayle.

Peggy, the world’s oldest schooner and one of the oldest complete wooden sailing boats, has been slowly drying out in a purpose-built humidity-controlled warehouse in Braddan since January 2015 following her removal from her dank cellar in Castletown’s Nautical Museum.

In May 2021 MNH was directed by Tynwald to provide an outline of options and timescales to bring Peggy home.

Its report, laid before this month’s Tynwald sitting, details seven options.

And it concludes that the most appropriate plan is for the vessel to be housed, complete with her original masts and rigging, in a new building constructed within the courtyard of the Nautical Museum at an estimated cost of £2,125,000.

But associated work to conserve and repair the historic buildings, and create an exhibition centre based around the life of George Quayle, the wealthy banker and maverick inventor, for whom Peggy was built as a pleasure craft in 1789, will cost a further estimated £2,850,000, taking the total bill to £4,925,000.

MNH says a realistic timescale, assuming all necessary approvals and consents are given and project funding is secured, would permit the site to reopen in 2025.

It says it is conscious that at a challenging time for the island’s finances the costs are significant.

But it says there are no viable existing spaces where the Peggy can be displayed.

And it says returning her without her mast and rigging would result in a ’highly compromised visitor experience’ which would devalue the site and the international significance of the Peggy.

The report says: ’The project must ensure it respects, protects and explains the importance of the Peggy, George Quayle’s legacy and the Nautical Museum site for future generations and delivers a high quality visitor experience.

’Seeking to return the Peggy to an existing area of the Nautical Museum or in isolation cannot achieve this.’

MNH says it will raise funds and work with stakeholders, donors and potential sponsors.

It will look at a combination of possible funding sources, including traditional grant applications and philanthropic support.

To progress the project it will need certainty on total funding, the report states.

It adds: ’This project offers the opportunity to re-present the whole site to provide a stunning display of the Peggy, fully rigged with her original masts and replicated sails, with access fully enabled for existing and new audiences of all ages and abilities with the opportunity to experience the Peggy in her entirety and at close proximity with views under, around and into the boat.

’The creation of a high impact visitor attraction would substantially enhance the island and Castletown’s visitor offering, helping to refresh and reinforce the island’s vital heritage offer as a compelling and attractive destination - for the island population, group travel operators and independent incoming visitors alike.’