SCARBOROUGH'S highways and engineer chief has defended the resort's controversial parking system, forecasting that it will generate thousands of pounds to improve the transport scheme.

Derek Rowell, director of technical services for the borough council, said that while it had lost £150,000 in its first year because of the massive capital investment in installing pay-and-display machines, the expected income in the current financial year is set to be £742,000 - £10,000 up on the original forecast.

"Indeed, the scheme is expected to make £350,000 this year," said Mr Rowell. "All of this is good news and by this time next year we should be receiving at a real surplus.

"We are now looking at schemes to allow that money to be ploughed back into local transport - such as the improvement of park and ride services, safety schemes, and highway improvements, which will bring real benefits to the borough."

This year, some £749,000 had been spent on highway schemes with a further £845,000 planned for 2002, said Mr Rowell.

"Many of them would not have received funding if the council had not been brave enough to introduce integrated transport."

He added: "The parking scheme is settling down and surveys show a level of use that compares favourably with use before it was brought in when on-street parking was free.

"This has helped increase private sector investment in multi-storey car parks while the park and ride system has increased fivefold to 50,000 this year."

However, he said, consultations were ongoing with leaders of the holiday and retail industry as well as with residents and a number of adjustments had been made to the original scheme in the light of experience.

Updated: 10:16 Thursday, December 13, 2001