A SMALL North Yorkshire bus company, which won a mass of support from villagers after its service was axed, has vowed to continue despite competition from a major travel company.

The director of Harrogate Coach Travel said he would continue to run services throughout villages on the outskirts of York and Ripon, despite facing tough competition from Arriva.

More than 350 villagers who use the service signed a petition to keep the company running the service, but Arriva put in a lower tender and the company lost out.

The company, run by director Craig Temple, has only three drivers and was set up a year ago after winning a contract from North Yorkshire County Council.

The service mainly covers rural villages on the outskirts of York including Hessay, Moor Monkton and Whixley, as well as villages surrounding Boroughbridge and Ripon.

It ran the service until it lost the contract to Arriva. But Mr Temple said he had spent a year building up the business, which was now reliable and well-used. When it lost the contract, 365 villagers from across the area signed a petition in support of the company. Following the support from local people, Mr Temple said he would continue the service alongside Arriva's service and would see if he could continue to make a profit.

He said: "What I have decided to do is to keep the drivers in jobs because people said that is what they wanted."

Mr Temple said he believed North Yorkshire County Council should listen to local people who wanted to use his company.

He said: "North Yorkshire County Council is a public-funded body paid for by us.

"When 365 tax payers sign a petition saying they want us to carry on that should mean something."

There was nobody available at North Yorkshire County Council to make a comment.

Ken Clarke, managing director of Arriva Yorkshire, said: "We are very pleased to have won the contract and to run this service."

Updated: 10:01 Friday, May 02, 2003