THE National Lottery could demand a share of the proceeds if the controversial sale of Richmond's old railway station building goes ahead.

Richmondshire District Council heard that a sale could proceed only when the lottery was informed, as its heritage fund had contributed £200,000 towards the £420,000 restoration of the listed building three years ago.

Martin Drydale, finance unit manager, told the full council on Tuesday that the National Lottery was therefore entitled to a say on the future of the early Victorian building.

"If we consider a sale, then they could ask for a share of the proceeds, but that is something which has yet to be determined," he said.

An offer from a company interested in acquiring the premises was considered in private session.

Coun Clive World appealed for an investigation into the way the council had handled the matter of the old railway station. The motion was defeated 15-13.

The closure of Richmond Garden and Farm Centre, which occupied the premises for 27 years, just before Christmas angered many residents and businesses in the town.

Proprietor Mike Pattison claimed he had been forced out by the council because the site had been earmarked for leisure and his business fell outside that definition.

Harry Tabiner, council chief executive, has insisted throughout that Mr Pattison gave notice to quit, unprompted.

Coun World had hoped an inquiry would lay the matter to rest. "There are still questions to be asked and questions to be answered," he said.

Coun John Harris added: "There is still a feeling among some people that this matter was mishandled. An investigation would mean the public would be reassured.

"It was the secrecy which surrounded the issue from the outset which led to misunderstandings and an inquiry would help establish if there are lessons to be learned."

Coun John Blackie, among those who voted to reject the idea of an investigation, said: "What would an inquiry find out that we don't know already? The district council sometimes has to respect confidentiality when dealing with sensitive commercial issues; we should be looking forward and not back."