BUSINESSES in streets away from the city centre are struggling under tough parking restrictions.

Coun David Merrett, City of York Council's opposition Labour group leader, told councillors at a meeting of the economic and community safety scrutiny board that shops in streets away from the city centre - such as Walmgate and Gillygate - were experiencing problems.

He said: "I think there's a real issue with peripheral streets.

"Parking prices are putting a time pressure on people to get straight into the city centre rather than taking their time browsing in the peripheral streets.

"They (retailers) are saying that the Park&Ride is working so well that people are choosing to go right into the city rather than getting off the bus and walking in."

Angus McArthur, owner of Snow Home, in Gillygate, said Park&Ride services had a definite effect on streets on the edge of the city centre.

He said: "On the Park&Ride you get carried right into the centre and you're not aware of streets like Gillygate and Micklegate.

"I think the volume of people down the street is not what it was - I am taking fewer credit card transactions during the week.

"I strongly feel that the charges are high - and that comes from customer feedback too."

Mark Band, owner of Walmgate News, said: "It's dead round here now - and it'll be even worse once they get this on-street parking sorted. People used to park up for half an hour, but that's all stopping now.

"I think they are diverting people out of town. It's so easy to go out of town now and park for free, and you can take as long as you want."

Pauline Dalby, owner of New Moon, in Walmgate, agreed, saying Walmgate's potential was being under-used.

She said: "The Park&Ride buses don't go anywhere near us.

"Parking is definitely an issue - and the new charges don't help because it restricts people's time."

Coun Ann Reid, executive member for planning and transport, said: "I think it's early days yet to decide what the impact of the changes in parking are having.

"The parking meters haven't come into effect yet."

Updated: 13:30 Wednesday, March 24, 2004