Turning a historic Oxford boatyard into flats could jeopardise the future of the city's river dwellers, says the yard's operator.

Castle Mill Boatyard, home of Alchemy Boats, could be closed to make way for 41 residential units, including 14 affordable homes.

Last Monday (August 16), the Oxford Mail reported that prizewinning author Philip Pullman had spoken out against the proposals to develop the yard.

The yard -- at the former Lucy's factory on the South Oxford Canal, in Jericho -- inspired the author to invent the Gyptians, nomadic boat people who feature in the His Dark Materials trilogy.

The yard's lease holder, Steve Goodlad, 40, who has lived on the canal for seven years, said: "The plans to redevelop were made 10 years ago when this was not a working yard.

"Now it is used by more than 70 house boats.

"If this boatyard goes, all of those homes will be left without this essential service.

"It would be like taking 20 houses and cutting off their electricity, water and gas."

Mr Goodlad, who has held the lease for two years, but worked at the yard for seven, provides a legally essential, four-yearly boat inspection as well as vital maintenance work.

He is hoping British Waterways will renew his lease, which comes up this year.

He said: "I think it would be a tragedy for this site to become derelict -- so when the Government appeal comes up in March 2005 inspectors will not be looking at a working boatyard.

"It could mean that within four years, canal boats in Oxford will be illegal."

Mr Goodlad said it was difficult for him to employ full-time staff, and he was limited to taking on sub-contractors because he had never had a long-term lease with British Waterways.

He said many of Oxford's boat dwellers had settled in Oxford. Many also had steady jobs, and include solicitors, architects, carpenters and various business people.

Phil Ableson, 38, who runs a tree surgery business in Oxford and lives on a houseboat, said: "My biggest fear is that in emergency situations, if a boat happens to be sinking and Castle Mill closes, it will mean a four hour journey instead of 20 minutes, and will jeopardise our health and safety.

"A lot of people are involved with the boatyard, and it means if you have a problem on your boat, there are always skilled people around who can help you out.

He added: "There's a good community on the canal, going all the way up to St Ebbe's.

"If Castle Mill closes it will totally break down a big part of the community. The only good that will come out of this is that it will line the pockets of British Waterways."

Vanessa Wiggins, a British Waterways spokesman, said: "We recognise the importance of good facilities for boaters and we are in touch with Mr Goodlad about the issue."