RUMOURS that Masham auction mart is to close permanently were scotched yesterday.

It was revealed that the directors of the small mart, widely seen as an asset to the town and a focal point for the surrounding rural community, were investigating ways of upgrading it so that it can re-open for business when restrictions on livestock movements are lifted.

The mart has been closed for normal sales since February 26 because of the foot-and-mouth crisis and has not been used as an animal collection centre, but the directors have continued to find business between buyers and sellers off the premises. It is understood that ways of ensuring financial support have been discussed.

All marts have been closed for normal business because of foot-and-mouth and its aftermath but the government has indicated that, under an interim livestock movement regime expected to take effect next month, cattle marts which meet strict biosecurity requirements can reopen. It is not yet known when marts dealing in sheep can resume normal operations.

It was announced last month that one of North Yorkshire's oldest marts, at Ripon, was to be closed and the site in North Road sold for housing.

But Mr Willis Graham, manager of Masham mart, said talk of closure there was "just gossip."

Mr Graham, an Ilton farmer, said: "The directors are working hard to try to keep it going and looking at various opportunities, particularly with Ripon closing.

"This has left a vacuum and we are hoping to be able to fill that gap. As one door closes another opens.

"We are looking at what work is needed and what it would cost to bring the mart up to Defra standards. We are looking at different alternatives but I cannot say what they are because they are in their early stages.

"We have several meetings with various people over the next seven days and after Wednesday next week we should know just where we are going.

"We are looking positively to the future. The mart is part of Masham, part of our history, part of the Masham sheep breed and part of the district."