SPECULATION is mounting that council chiefs are contemplating a radical rethink on the Turner Centre, Thanet’s multi-million pound flagship arts centre.

Kent County Council is understood to be weighing up whether the centre could be relocated to another part of the harbour in a bid to cut costs.

Under the existing plans, it is due to be built alongside the stone pier at Margate.

Contractors are due to tell KCC their latest estimate for building the centre, in line with plans for it to be partially embedded in the sea bed.

Although it has been hailed as an iconic design, the centre has been dogged by problems. Costs have spiralled to £30million, four times the original estimate and the gallery will now not open until 2008, some four years later than forecast.

Kent County Council is understood to be anxious the final bill for sticking by the original radical design could increase still further because of the rising price of steel, the main material being used in the construction.

Council chiefs are also concerned their own efforts to secure backing from private sponsors may not bridge what is a widening funding shortfall.

Cllr Michael Hill (Con), KCC’s cabinet member for community services, would not be drawn on what alternatives might be on the table and emphasised the council remained committed to an arts centre in the town.

"The contractors are due to give us their proposals and prices next week. If the price is okay, we will proceed to contract and get on. If the price is not okay, then we will have to review the issue. All things are possible.

"We are firmly committed to the regeneration of Margate and an arts gallery to contribute to that," he said.

But he confirmed: "This is an important stage. We will be looking at the costings with our own professional advisers, including engineers, once we have got firm proposals. We will be making a decision as quickly as we possibly can."

Thanet council’s opposition Labour group leader Cllr Richard Nicholson said there are indicators that show all may not be well with the current scheme.

He said: "The steel contract for the projected centre has not been let as far as I am aware. This is a telling sign. It would have to be a tailor-made design and if the project fell by the wayside, the whole steel structure would be useless anywhere else. You cannot pull steel apart to recreate another structure.

"I still believe that a Turner centre would be a valuable attraction for Margate. However, over recent years our group has viewed with increasing concern the apparent lack of will to control the spiralling costs associated with the project."

Thanet council leader Cllr Sandy Ezekiel said he was not prepared to comment further on speculation regarding the future location of the centre.

But he stressed: "I am confident that the Turner Contemporary will be built in Margate and that it will play a vital role in the town’s regeneration plans."

The Arts Council has agreed funding of £4.1million, with a further £4million pledged by SEEDA, the South East England Development Agency.