PARTS of Bishopthorpe Palace, the home of the Archbishop of York, Dr David Hope, could be converted into flats and rented out in a bid to raise cash for church funds, a new report has suggested.

The report, which looks into the living arrangements of the Church of England's hierarchy, has also recommended that the 13th century palace be opened to the public.

Produced by a committee chaired by Professor Anthony Mellows, the report recommends that the public should be given greater access to the palace in order to generate income to cover upkeep.

The palace could cover most of its maintenance costs while continuing to be used as living and working quarters, it says.

The report also found "grossly under-utilised" space in Bishopthorpe, particularly in parts of the buildings set aside for official guest bedrooms.

This led to the suggestion that parts of it could be developed and let commercially.

Rob Marshall, the Archbishop's spokesman, said efforts were already being made to open up the palace to the public.

Although he added that the prospect of renting flats at Bishopthorpe could be "a long-term" issue, he discounted any moves towards this in the next few years.

Mr Marshall said: "There has been an increase in the number of visitors at Bishopthorpe.

"It is progressing and evolving at the right speed. On the subject of development, I just don't think this is an issue which is a priority.

"In the long-term it may be looked at. In the immediate future one cannot see that as a legitimate option."

Bishopthorpe parish councillor Carole Green said: "Some of the comments in this report are totally unfair. I would suspect they are from people who see a large building and think 'this could be used better'.

Meanwhile, the report also says the Archbishop lives in accommodation that is neither segregated or private. It adds that "no Archbishop, or his wife and children, should be expected to live in these circumstances."

The report says: "In other contexts the word 'palace' can give the impression of grandeur."

Updated: 11:55 Wednesday, May 29, 2002