CITY of York Council said today it wants more jobs to be created on the Terry's site than are currently employed there.

Chief executive David Atkinson said today's news came as a "huge disappointment" for the city.

"We are determined to provide every possible support to the workforce and to will aim to secure at least the same number of jobs from the site in future," he said.

A council spokeswoman said the site had already attracted considerable interest from developers, but the council had made it clear that it was designated as an employment site and that this would remain its fundamental purpose in the future.

"This aspect has been discussed with Kraft and the council expects to have early discussions with their property agents as soon as they are appointed," she said.

"The council's executive will be considering the use of the site in the near future so that clear parameters can be established at an early date. This will be followed by the production of a planning brief over the next few months.

"The final priority for the council is to secure a commitment from Kraft to maintain the historic Terry's link with the city."

York MP Hugh Bayley described the news as a "body blow".

He said: "It's a body blow for everyone who works at the factory and everyone in York will be sorry to see Terry's go after more than 200 years. The company and city council must do all they can to help the staff find other jobs but obviously it's a difficult time for everyone involved.

"The company has talked to me and worked closely with the union since they first announced their intentions to close and they should continue to do so."

Updated: 13:46 Tuesday, June 22, 2004