Business leaders in Ryedale have issued a desperate plea to council chiefs to help regenerate their town to prevent more job losses.

But a crucial part of their proposal, which involves two-hour free parking in Malton, may not be adopted because of a lack of funding.

The Malton and Norton Town Centre Initiative (TCI), which is helping to co-ordinate the appeal, claims numerous businesses have reported a drop in sales of between five and 20 per cent since February.

"Business profitability is seriously under threat," said a report from the TCI.

"Some staff are on short-time working and jobs are currently being lost.

"While many firms are working hard to get through this difficult situation it is clear businesses will fail unless substantial support is given by the district council as a matter of urgency."

Blame for the drop in trade is being firmly pinned on the floods and the foot and mouth crisis.

Besides two-hour free parking - which traders claim would act as an incentive to visitors - there are calls to actively promote Malton as a stopping destination to coach companies and create extra coach parking spaces in Newgate Street.

Other suggestions for revitalising the town include better facilities for young people, a pedestrianised Market Place in Malton, and landscaping the riverside to make it a visitor attraction.

But Ryedale officials say the parking and coach schemes could not go ahead this year because funding first needs to be approved by Yorkshire Forward and the Countryside Agency.

But, they say, their approval won't be available until next year.

Malton and Norton Chamber of Trade chairman Denys Townsend said he was disappointed the council was not taking action over free car parking.

He added: "As for the coach parking, all we are asking is for the council to support the proposal in principle.

"If it does, the town centre manager will find the funding for that scheme.

"There is an urgent need for this to go through quickly, because over the next few months we want to start promoting the area to coach companies as a stopping off point in time for next summer."

Denis Lindsay, of Ryedale Business Action - which is campaigning for free parking in Malton - said the situation was dire for traders.

"There is a need to get these issues moving, but the council seems to be fiddling around," he said.

Members of Ryedale District Council's policy and resources committee are set to discuss and give their views on the issues mentioned above and consider traders' pleas at Ryedale House tomorrow at 6.30pm.

Updated: 11:18 Wednesday, June 27, 2001