SQUATTERS protesting against the "scandalous waste" of buildings lying empty and disused in York have found a new home - in a former pub.

Six protesters have moved in to the Gimcrack Hotel, in Fulford Road, which has been boarded-up since the business closed eight months ago.

The group includes some members of the White Swan Hotel activists, who were evicted ten days ago after spending a month at the Piccadilly building, which they renamed the Rainbow Peace Hotel.

Spokesman Gareth Spydaz, 40, said the group was taking direct action to bring attention to the scandalous waste of disused properties in York.

He said: "We sincerely believe that this building ought to be recognised as something for future generations to inherit and brought back into use, even as a public house.

"We've got a wonderful building here with original period features. It would not take much to get it back up and running for everyone's benefit."

The Gimcrack, which is in a conservation area, was closed in September 2002. It has two main bar areas, a beer cellar, guest rooms, kitchens, offices and a two acre garden and children's play area.

The building is owned by PD Smith (Holdings) Ltd, which also owns the Queen's Hotel in Skeldergate, York, and the Parsonage Country House Hotel at Escrick.

The business, which is based at Moorside Farm, Lordsmoor Lane, Strensall, bought the building, which traded as a pub for 70 years, in October last year for an estimated £700,000 from leisure giant Tom Cobleigh.

Craig Smith, the managing director of PD Smith (Holdings) Ltd, said he only learned about the squatters when the Evening Press contacted him. He said he would be talking to his solicitors about his legal position. "We do not know what sort of people they are. If they just want a roof over their heads it's not so bad, but we do not want any trouble with drugs or alcohol."

A spokeswoman for York Police said they had received several reports of people in the gardens but no indication of people actually inside the building.

Fishergate ward councillor Andrew D'Agorne said he was concerned for the safety of people occupying the building.

He said: "I have written to the owners a number of times about security and the future of the building, but I have yet to receive a reply."

A planning application for the site submitted by R and S Construction, of Pocklington, was recently revised to include 24 dwellings. Residents and Green Party campaigners furiously opposed the closure of the pub.

Updated: 11:11 Friday, May 30, 2003