A YORK nursing home boss who has come under fire for plans to demolish the home and convert it into flats says he has been forced into the situation.

Residents in Lawrence Street have objected to the plans to demolish Laurens Manor Nursing Home and build 24 flats.

They believe it is a valuable building and should be converted rather than be demolished.

Managing partner Tony Tait says this is not what he wants, but claims City of York Council is not funding the home properly, which could soon result in his business not being viable.

He also says changes to the amount of affordable housing required within developments means the value of his land is likely to fall.

He said: "I believe strongly and passionately about the service we provide and that the elderly people deserve a fair deal and should be treated and looked after properly.

"I have been forced to go down this road. I have had offers for this land and site from all property developers over the last three to four years.

"It is an easy option to sell up and walk away, but that is not what we want to do."

Mr Tait, who is also the chairman of York Area Independent Care Group, said although he receives adequate funding for residents new to the home, those who have been in for some time are not being given the same amount - yet are still receiving the same care.

On top of this he has had to deal with large increases in insurance and has had to review his staffing costs.

He said: "We have decided to look at our options like any prudent businessman would, in case the situation deteriorates further and our business becomes unviable.

"We enjoy what we do and, most importantly, we feel we provide an excellent service which our residents deserve and appreciate. This makes it all worthwhile."

Bill Hodson, City of York Council's senior assistant director of community service, said the authority had been trying to agree a fair price for care, and had come up with a package which involved a four per cent increase on existing contracts, plus a ten per cent increase for new residents.

He said: "That has generally been welcomed by providers as a step forward because they can see how their income will increase in the future. It is a way the council can manage the rise. We cannot do it in one year, but by doing it resident by resident it is more manageable."

Updated: 11:08 Monday, April 14, 2003