“We have had discussions, we are having discussions. But there’s no result of any kind [at the moment].

“In my experience of regeneration, things can often take a lot longer than you hope.

“There was a complete business plan with a cocktail of finance.

“There is no change in any of that. The land is still there, the concept is still there. It’s a matter of finding another organisation to take it forward.

“There have been many projects that have stalled and then revived.

“That’s what I hope is the situation we are in here. But it would be foolish to make promises.”

Mr Hamilton Fazey, who is also chairman of Waterloo Residents Association, said: “I have suggested to Margaret Carney [Sefton’s chief executive] that a community interest company be formed.

“At the moment, this is likely to become an orphan project. But I do think it is a great project if we can keep it alive.

“A community interest company would create a buffer between the project and the public sector.”

He said if the project could be saved he would like there to be a ferry stop at the observatory to make it an even more attractive proposition for tourists.

Cllr Dowd said: “It’s not necessarily one of our priorities. It’s going to be a pretty expensive project. We are not in a position to drive any capital for this.

“We have got a range of projects that we’re are working on like Building Schools for the Future.

“In terms of capital projects we have got enough on our plate without going down the path of taking something on that was not initiated in the borough.”

The original international design competition for the tower attracted 92 designs from around the world.

OPINION: PAGE 10