BAHAMIAN police have arrested the owners of the speedboat which killed toddler Paul Gallagher as he slept on a beach.

Clifford Nottage and Evangeless Williamson have appeared before magistrates in the Bahamian capital of Nassau, charged with manslaughter through negligence.

Williamson was additionally charged with perjury.

It is understood this charge relates to evidence he gave at a 2003 Bahamas inquest into Paul's death.

Nottage, aged 53, was released on £5,100 bail. Williamson, aged 65, was released on £6,120 bail.

The duo, who own boating firm Paradise Ocean Sports, are due back in court next week for a further hearing.

Their arrests and court appearances followed those of boat driver James Bain, aged 29.

Bain, who appeared in court on January 22 charged with manslaughter through negligence, was released on £5,100 bail and ordered not to leave the country.

He was due to appear in court again yesterday for a hearing to review the evidence against him.

Two-year-old Paul died of massive head injuries in August 2002 after the speedboat mounted the beach in The Atlantis Resort.

After nearly five years of campaigning, his parents Paul and Andrea say they are delighted the trio has finally been arrested.

Mr Gallagher, 42, said: "We are delighted the Bahamian authorities have charged these men.

"It is a fantastic step forward as we fight for Justice for Paul.

"We both want to see the case re-opened and fully investigated by the Bahamian authorities."

He added: "There are still other people who need to be held to account, including the Atlantis Resort's lifeguards, who failed to notice the boat was out of control for around a minute, with no driver at the wheel, before it mounted the beach and killed Paul."

The Gallaghers, of Repton Road, Orpington, are still awaiting information of trial dates.