CAMPAIGNERS working to re-open a rail link between two Ryedale towns say they are "extremely disappointed" at a decision to suspend vital funding.

The Strategic Rail Authority is withholding financial backing for the Malton-Pickering link, which means that plans to see it up and running are shelved.

Ernie Preston, of the Rail Passenger Committee, described it as a major set-back for rail users.

"In the short term it now means it will not happen and that's bad news for people, particularly in this area," he said.

Mr Preston said the link - which would give passengers the chance to travel through to Whitby by rail from York and Malton - would have boosted the area's economy.

"At the moment it takes four hours each way for passengers to get from West Yorkshire to Whitby by rail, but just an hour and a bit by car.

"The rail link would take no end of traffic off the road and bring more people into the National Park.

"It would have been a major benefit.

"All is not lost, but the brakes have been put down pretty hard."

Chris Millns, head of environmental enhancement with North Yorkshire County Council, said: "We had been planning to put in a bid in March or April.

"We had done quite a lot of work in preparation for that, and to receive the news that they were not accepting any new applications was extremely disappointing."

Mr Millns said that about £30,000 had already been spent preparing the case to re-open the link.

Bill Breakell, the North York Moors national park's tourism and transport officer, said: "The work we have undertaken needs to be filed and ready to pull off the shelf when the SRA is in a position to release funding again."

A spokesman for the SRA said it hoped the funding problem would only be temporary.

"We are not suspending it indefinitely, we are suspending it for a year or so," he said.

"We will not be accepting new applications, but the funding scheme will resume."

Updated: 11:13 Monday, January 27, 2003