YORK taxpayers must not lose out on the £1 million the city invested in bringing Thrall Europa to town, say the city's Liberal Democrats.

Expressing his dismay at the news that Thrall could close its manufacturing plant in December with the the loss of 260 jobs, Lib Dem leader Steve Galloway demanded answers as to City of York Council's investment in the Holgate Park site.

Freight company EWS - which placed a five-year order for 2,500 wagons with Thrall back in 1997 - has said it would be looking elsewhere if it needed new wagon stock.

In March, the Evening Press reported how £1 million of public money was used to lure Thrall Europa to York.

Leaked papers revealed that £950,000 was given to refurbish the former York Carriageworks buildings for Thrall by the council.

Thrall now has new landlords, Ashtenne Industrial Fund Ltd, but Coun Galloway still wants to uncover the questions about the council's investment in the site.

He said: "We have once again raised with council officials our query about the terms and conditions of the council's investment in this site and the need to ensure that either council taxpayers benefit from any increase in value resulting from the sale of the asset, or that alternative manufacturing industry is introduced at the Holgate Road works.

"Liberal Democrats have asked officers to arrange to meet with Thrall officials to discuss how employment may be sustained for the company's local workforce."

Roy Templeman, council director of environment and development services, said: "The unwelcome news from Thrall Europa is not related to the sale of the Holgate Road site some months ago.

"Council officers have been talking to the new owners to ensure that the investment and strategic significance of the Thrall works is, if at all possible, retained and occupied by the rail industry or manufacturing."

Meanwhile, an EWS spokesman said: "We are coming to the end of our order. (Whatever happens) We will go into the market place. There are other people who build wagons."

Updated: 10:01 Saturday, June 29, 2002