AN action plan to boost the rural economy of North Yorkshire by cashing in on the natural assets and traditions of England's largest county has been presented to county councillors.

The plan is the result of a study jointly funded by regional development agency Yorkshire Forward, the Government Office for Yorkshire and the county council. Research was conducted by consultants SQW.

The county council executive was told on Tuesday that farm diversification, outdoor adventure, exploiting the heritage landscape, special festivals and events were among the potential opportunities for generating more income and investment for North Yorkshire.

The consultants said it was vital to strengthen the North Yorkshire economy by making it more independent, which would then create new employment and opportunities.

The executive heard that the partner organisations were earmarking £1m to help the new rural economy project.

The SQW report highlighted mixed strengths in North Yorkshire. While it had high school attainment levels, a picturesque landscape and environment, high self employment and low unemployment, it suffered from low wages, poor retention of university graduates and, in some areas, low activity rates.

It said more could be done to add value to food produced in North Yorkshire and a project officer was proposed to drive new ideas, in line with the Defra strategy for sustainable food and farming.

Local food producers could be helped to market their wares through development of information technology and broadband, said the consultants.

They believed more tourists could be attracted to North Yorkshire by developing outdoor adventure opportunities such as fell running, mountain biking, caving, sand yachting and sea kayaking.

The consultants suggested that the two national park authorities should work on this idea with the Yorkshire Tourist Board, local councils, the Sports Council, local sports clubs and the new North Yorkshire cultural partnership.

It was hoped that a co-ordinated programme of rural festivals could be launched in 2006.

The consultants added that parish councils should be asked to help identify suitable sites for affordable housing as well as workspace for small businesses.

The county council executive broadly accepted the results of the research although it was stressed that a knowledge-based economy involving IT and broadband must play an important part.

An urgent report was also called for on the future of local agricultural shows following controversial Government plans for a new tax as part of an overhaul of the licensing system.

The consultants' report will be considered further at regional level before recommendations are made to a joint development board including the county council.