SCOTLAND'S canals are to be brought into the 21st century in a plan to create new communities and business opportunities.

Scottish Canals, which took over ownership from British Waterways, plan to put the Forth and Clyde canal at the heart of re-generation projects and promote the canals in the north of Scotland as holiday destinations.

It is preparing an investment strategy designed to encourage more people to live alongside canals, more businesses on the banks and more tourism and leisure activities to generate income.

The Forth and Clyde Canal, which runs from Bowling in West Dunbartonshire to Grangemouth with a branch from Maryhill into Port Dundas near the city centre, will be the focus of a nationwide strategy. Plans for a watersports centre at Port Dundas are in place and the site is expected to be a feature of the youth olympics in 2018 if Glasgow is successful in its bid.

A company has been set up to secure investment to buy canalside land for regeneration projects, with plans for more holiday homes along the Cale-donian and Crinan canals.

Transport Minister Keith Brown announced the plans yesterday. He said: "Scotland's canals are a great national asset and their revival offers real opportunities, not only for recreation and regeneration, but for the wider economy."