HUNDREDS of businesses were urged today to save York's Christmas lights -after Nestl Rowntree pulled the plug on future sponsorship.

The confectionery giant has made massive donations over the last two years - including £30,000 in 2004 - to ensure York sparkles over the festive season.

But it has now told the city's Christmas lights committee that it will not be able to contribute towards this year's appeal.

The news comes only a day after the Evening Press revealed that Nestl was temporarily closing down several production lines at its York factory, and seeking to dispense with temporary agency staff.

A company spokeswoman told the Evening Press: "We've been very pleased to sponsor the York Christmas lights for the past two years and hope that the illuminations committee are successful in finding new sponsors for this year."

She said the company was "proud to play an active part in the York community" - for example by supporting the Make Space initiative, a national programme to develop a network of contemporary, dynamic and safe out-of- school clubs, several of which were in and around the York area. But the Christmas lights decision leaves fundraisers having to find at least £60,000 from other sources just to repeat the illuminations staged in the city centre last Christmas, with £100,000 needed to stage a brighter display.

Committee chairman Frank Wood said today: "We are very grateful to Nestl for its support over the last two years, but I am very disappointed (by the decision)."

He said the committee would now be writing to hundreds of businesses across the city to urge them to contribute towards the fund - including the larger retailers, who had not generally contributed as generously as smaller traders.

Mr Wood, of the Goodramgate jewellers Braithwaites, gave a stark warning that if sufficient funds did not come in "our beautiful city" would be without lights next Christmas.

Tourism boss Gillian Cruddas appealed to York's businesses to get behind the lights appeal to make the city an attractive destination over the Christmas season.

"Our Yuletide York programme is massively important for the city's economy and benefits a range of businesses, especially the shops," said Mrs Cruddas, chief executive of York tourism bureau.

"Half a million visitors came into the city last year, approximately 12 per cent of our annual visitor numbers, spending a minimum of £33 million.

"It is vitally important, if York is to keep ahead of the competition, that we make the city inviting and special at Christmas time."

She added that she was disappointed Nestl could no longer offer sponsorship, but was also grateful for its generous support previously.

Len Cruddas, chief executive of York and North Yorkshire Chamber of Commerce, said the lights were very important to the city centre as it competed for custom with cities such as Leeds and also out-of-town shopping centres.

He also spoke of his gratitude for Nestl's support, but said that the city needed a sustainable, long-term solution to the problems of funding the Christmas lights, instead of "scrabbling around each year" to find the money.

City deal is not affected

York City Football Club will not be affected by possible changes at Nestl, as cash for a sponsorship deal which included renaming their ground KitKat Crescent was paid in full up front.

Communications director Sophie McGill said: "York City's sponsorship deal with Nestl for the naming rights of KitKat Crescent was agreed in January, 2005.

"The deal is for two years and will expire in January, 2007. We received £100,000 payment in January, 2005, to enable the club to complete the acquisition of the majority shareholding in Bootham Crescent Holdings.

"Nestl's support was crucial in our efforts to secure the ground and we are always grateful for their help and assistance."

Updated: 15:55 Wednesday, January 25, 2006