A MAJOR leisure development near the former royal yacht Britannia's new home in Leith could be sunk because of fears of fire from a chemical store, writes Raymond Duncan.

Planning officers are set to recommend a #1.5m plan to transform the area's historic Old Corn Exchange into a top tourism facility be rejected on safety grounds because it is only 300m from the store containing more than 1000 tonnes of ammonium nitrate.

The Health and Safety Executive said yesterday it had advised against the planning application on safety grounds. Its stance is a blow to a plan for a Celtic folk centre with bars, restaurants and a stage.

Partner David Redpath said they had spent #25,000 on architects and consultants ''without a whiff of any problem over developing this site from this chemical works until a few days ago''. He said there were new flats and restaurants in the area and questioned why it appeared they were being ''singled out''.

A HSE report is said to indicate the Old Corn Exchange is ''within the consultation distance of a notifiable site''.