LANCASHIRE County Council has been slammed over plans to offer loans to over 30,000 employees to buy cars.

Opposition councillors say the scheme makes a mockery of the council's commitment to public transport and the environment.

And they fear that many of the cars bought with the loans will never be used for council business.

Conservative group leader, Robert Hodge, said: "The proposed policies now are that some 36,500 council employees will be eligible to borrow unlimited sums of money at a lowest rate of 7.4 per cent for the purchase of a motor vehicle. "If the loan is £10,000 it could mean that some £3.65 million will have to be made available as well as , in the extreme, placing more than 36,500 more vehicles on our roads."

Green city councillor Jon Barry also attacked the council's stance.

He said: "The county council has its priorities in a twist. On one hand, through its Travelwise policy it is urging the public to use public transport, to walk and to cycle -- but on the other hand, it is doling out cheap loans to its own employees to buy new cars."

However, members of the county council's ruling Labour group claimed that the car loans would actually improve the environment.

They claim that a special discount of 1.5 per cent for cars with motors below 1200cc will encourage staff to buy smaller cars.

Committee chairman, Cllr Jean Battle, said: "The extra discount of 1.5 per cent will be a great attraction for staff to switch to a smaller vehicle below 1200cc.

"At the same time it also gives the many employees who are occasional car users the same opportunity to obtain a loan as authorised users."