A YORK councillor is threatening to sue the Liberal Democrats over claims made in a residents' newsletter that he admitted knowing about changes to the controversial probation hostel, but failed to make them public.

Beckfield ward councillor Richard Cregan says he is "100 per cent certain" he did not know about the change to Southview Hostel, in Boroughbridge Road, which means it can now house residents serving sentences for crimes such as child sex offences, rape or murder.

Most of the local community were not told of the change implemented on January 1.

The Liberal Democrats have now circulated a leaflet to residents in Leeman Road claiming that Coun Cregan and Coun Ruth Potter (Beckfield ward) "admitted they knew about the change as long ago as October" but failed to consult the community.

But Coun Cregan strongly denies the accusation and says he may now sue the Liberals for libel. He also intends to complain to the council standards committee.

It is believed a letter was sent to the two ward councillors and York MP Hugh Bayley in October 2001 by the National Probation Service, inviting them to a meeting to inform them of the change. But Coun Cregan said he never attended because he had moved house and the letter was sent to his old address.

"I'm not going to accept the fact that the Liberals can tell blatant lies to the residents who I represent," he said.

"I didn't attend the meeting and had no knowledge of the changes. Ruth and I didn't discuss the matter."

Liberal Democrat leader Coun Steve Galloway said: "It seems strange that both Ruth Potter and Hugh Bayley were aware of it, but didn't think to discuss it with Mr Cregan."

Coun Potter confirmed she attended the meeting with Mr Bayley.

She said: "We were told by the probation service that the residents had been informed at two liaison meetings. I have never received any complaints about the changes."

Updated: 10:51 Thursday, September 26, 2002