STAFF at Lancashire County Council are being offered cheap loans to buy cars in a controversial new move supporting the Government's drive for a cleaner environment.

The pioneering car loan scheme, offered to all employees, gives a special discount of 1.5 per cent for loans to buy vehicles with an engine size below 1200cc.

And county council chairman Jean Battle said it would give employees the incentive to buy smaller and more environmentally friendly cars.

But Conservative group leader Robert Hodge wholly condemned the decision by Labour group members.

He said: "This decision completely flies in the face of Lancashire County Council's campaigns and policies being promoted to reduce the amount of car usage.

"The Conservative group's record on personnel relationships is one of excellence and we have always attempted to be model employers," he added.

"However, we also have a responsibility to the rate-payers of Lancashire to ensure that their money is used efficiently and properly which will not be the case if these proposals are enacted."

Coun Battle said she welcomed the far-sighted innovation by her committee.

"Under our policy of 'greening' Lancashire we have introduced quality bus schemes, built cycle lanes and actively promoted public transport, cycling and walking," she said.

"However, we accept that many people will still have to use cars for work and this discount scheme is another strand to our 'greening' policy."