THE District Auditor has been asked to check that £2.8 million of taxpayers' money has not been lost with the closure of Thrall Europa.

City of York Council's Liberal Democrat leader, Coun Steve Galloway, has asked for the auditor to look at what has happened to cash which was invested in the company five years ago. He said he was eager to ensure that it was not lost.

The management of the Holgate Road company announced on Friday that it would close in December, with the loss of 260 jobs.

Parent company, Trinity Rail GmbH, said the closure was expected because there were no foreseeable further orders when the company completes a five-year contract to build wagons for EWS.

Coun Galloway said: "The council invested £2.8 million into the Holgate Road site, with £1 million direct to Thrall for plant, and £1.8 million for more general redevelopment of the site.

"Members were very keen that there should be a return on that investment and the question is whether we will see that.

"My main concern is for York council taxpayers. I want to see the £1 million protect some continuing jobs, and I want to find out whether or not the £1.8 million safeguards us an interest in the site."

Council leader, Dave Merrett, said he was meeting council officers today to have the situation explained.

He said: "It is important to remember that, as far as I can recollect, all council members were concerned to secure a skilled manufacturing business in the city, and we took decisions to secure that.

"We now must ensure that we are able to continue that and, if possible, secure alternative rail industry involvement."

Updated: 11:32 Monday, July 01, 2002