There are 650 second homes paying half-price council tax in Ryedale. At the moment, the average discounted council tax on a second home in Ryedale is just £420 a year. This compares with an average £840 for the ordinary resident with just one home. In addition, there are up to 150 holiday homes classified as business properties which attract business rates.

John Richardson, of Ryedale Tourism Association, says second home owners may only pay half price council tax, but many of Ryedale's second homes make an important contribution to the local economy.

"If someone lives, say, in Rosedale and has a house in Cropton with visitors for 30 weeks, those 30 weeks are high-spending weeks. A family of four living in a holiday home for 30 weeks spends the same as a local family would in 52 weeks."

On the other hand, where homes were left empty there was no contribution to the local economy nor to the community.

"In the case of a second home that is not let, unfortunately, the local economy doesn't benefit by the spend of the person in it. It would be a better policy that when a second house is empty, we could get something out of it."

Tom Tyler, of the tongue-in-cheek association Ryedale Against Tourism (RATS), says most ordinary people don't get any benefit from tourists in the region. Rather, they have to suffer the crowded roads and so on in the season.

From his home in Marton, he said: "I am inclined to believe that second home owners should pay the full tax. People who get the benefit of tourism should pay."

He added for good measure: "Local people have to use the crowded car parks and have to pay full whack. Why don't they charge tourists extra?"

Liz and Lloyd Varley, of Nottingham, have a second home in Pickering which they rent out. They bought their house because they love the area and, says Liz, it would be lovely to retire here.

"If the council tax went up, we would just have to absorb it. I don't know how we would do that to be honest. We are fair people but perhaps we would have to pinch up our prices."

She said they use much of their rental income on improving the house.

In Newton-upon-Rawcliffe, Pat Anderson lives next door to her second home which she rents out to tourists.

She pointed out that tourism was worth an estimated £120m a year. "Until foot and mouth, people did not realise the value of it," she said. "This would be just another nail in the coffin after the fuel strike, floods, foot and mouth and September 11."

Whether or not councils charge the full rate of tax for second home owners would be up to them to decide. Local authorities will be asked by the Government to give their views on the new consultation paper. Views are also sought on how the extra money raised should be spent.

Coun Elizabeth Shields, of Ryedale District Council, said: "If people can afford a second home, then they can afford to pay the full tax."

She was concerned about the effect empty properties had on the life of communities.

"In many cases, young people are unable to find accommodation in their local villages, either because there are no available properties or they cannot afford the price."

However, she said, it was important to attract people to visit Ryedale.

"We want to encourage visitors who will come and stay in hotels, guesthouses and farmsteads. We need people to come and stay."

One solution to accommodation for tourists would be timeshares, she suggested.

Updated: 10:36 Thursday, November 29, 2001