PROPOSALS for charging motorists for on-street parking are under consideration following a preliminary report into reducing congestion.

The initiative could see charges introduced to park in market towns, including Northallerton, Richmond and Thirsk, replacing the free disc system.

But the proposal has prompted fears it could drive shoppers away from town centres when many of them are already struggling to survive.

A report has now been drawn up for a working group established by North Yorkshire County Council to consider the issue, following the introduction of on-street charges in Harrogate and Scarborough.

County environment director Mike Moore said no decision on extending the scheme to other towns would be made without extensive consultation.

He said if charges were introduced they should be accompanied by an overall transport strategy, including park and ride, improvements in public transport, better facilities for cyclists and pedestrians and parking areas for residents.

But he said the Government was encouraging local authorities to look at ways of generating income, with on-street parking charges one option to pay for transport improvements.

Local authorities which did not maximise the opportunities to make money in this way could be penalised.

Mr Moore said the regional transport strategy stated that a major purpose of introducing charges was to make people more aware of the cost on others of using a car in terms of congestion, pollution and noise.

But he said the strategy recognised there would be limited capacity to raise money through charges in rural areas.

He said: "There is also a concern that in the more rural parts of the county, the public transport system is not of sufficiently high quality and frequency to provide a realistic alternative for most journeys."

Mr Moore said on-street charging could raise concerns among traders that business could be hit.

He said: "Extension of on-street charging schemes is always controversial and successful implementation would depend on convincing local councils and interest groups that the benefits outweigh their perceived disadvantages."

But Mike Nicholls, chairman of Richmondshire Business and Tourism Association, said: "We would be very much against on-street, particularly as it affects the Market Place in Richmond.

"We should be looking at running the limited-stay system better instead of restricting parking and making people pay for it.