York Hospital staff can continue using council car parks at a discount after all, it emerged today.

Evening Press inquiries have revealed that a major misunderstanding led hospital bosses to believe that substantial discounts for parking at Foss Bank and Marygate car parks were being removed.

City of York Council said it had never intended removing the discount for the ten permits.

Bill Woolley, assistant director development and transport, said the discounts - which had been negotiated previously in recognition of the special difficulties faced by health service staff - were still available for the coming year.

He believed the misunderstanding had arisen after bills for the full cost of £1,000 per permit had been sent in error to York Hospitals NHS Trust for the coming year.

The Press revealed on Tuesday that Trust director of facilities Danny Morgan believed it could no longer afford the permits because of the removal of the discount. He said he had been informed that the discount could not continue because of increased usage of the car parks.

Pathology lab assistant Lynda Walker, of Wressle, near Selby, said then that she feared the loss of her permit would force her to park on the city's streets and risk walking to and from work at the hospital late at night.

She was delighted by today's news, and said it vindicated her decision to contact the Press and the paper's subsequent investigation. "It would never have come to light otherwise," she said. "It's brilliant. I had been thinking I might have had to finish working there." Mr Morgan said: "It's excellent news." He said it was "almost certain" that the trust would now be able to carry on buying the permits if the discount continued, although he would have to consult with staff first.

Mr Woolley said he was not aware of any member of council staff confirming to the trust that the discount was being withdrawn. He said the only cost increase facing the trust was one in line with the general increase in permit costs, which reflected increases in daytime charges and the introduction of evening charges.

Updated: 10:35 Thursday, March 25, 2004