THE battle over the future of the tourism industry in West Somerset took another twist on Monday night when district councillors were faced with a line of placard-waving protesters.

Despite a recommendation from district council chief executive Tim Howes to merge the marketing of Exmoor and West Somerset with North Devon and Torridge, councillors had other ideas and gave "the industry" another chance.

The proposal to create a Devon/Exmoor partnership was greeted with howls of protest when it was first suggested, with hoteliers and businessmen accusing him of only looking at pound signs and not the views of local people.

They feared the area would lose its identity with prospective visitors being lured to the larger centre of Barnstaple, primarily because of better access via the North Devon Link Road.

Last week the Free Press reported on hoteliers' plans to set up a mini-picket line outside the council chamber to make sure district councillors were left in no doubt as to the strength of their opposition to Mr Howes' plans.

Now those residents and protesters will have the opportunity to present their case to the council in three months time in a bid to persuade members to go it alone and create a Greater Exmoor Company.

Minehead Residents Association secretary Malcolm Higgins gave councillors an outline proposal for such a marketing company, created under the umbrella of the Exmoor Tourist Association, at the start of the meeting.

It set out a five-year vision for the future and accused the district council of failing to support the tourism industry, claiming that in 1993-94 the council's tourism budget was £48,750 compared with £6,866 in 1998-99.

The report concluded that the Greater Exmoor Marketing Company Ltd was an "exciting opportunity" with the association's own ballot proving that 80 per cent of its members favoured the stand alone option.

However, Mr Higgins stressed that the financial calculations in the report were purely speculative at this stage and appealed for more time to draw up a proper business plan.

But not all tourism providers sided with Mr Higgins as Ros McGuire of the Minehead Hoteliers Association claimed the majority of her members wanted to join up with North Devon believing the new organisation would have a better chance of European funding.

She said: "A lot has been said about going independent but who would manage the guide? We need a professional outfit.

"It is easy to produce a guide but to market it takes money and expertise . . . we believe we would have far more success going with North Devon."

According to Mr Howes' report to Monday night's meeting of the cabinet, a merger with North Devon would set the council back £73,000 a year over five years with the industry stumping up a further £100,000 a year.

His report also stated: "It is envisaged that £267,000 of European funding would be forthcoming to support the Devon/Exmoor partnership."

However, on Monday night he told councillors: "When it comes to European funding nothing is certain. What I can say is that the Devon/Exmoor partnership is more likely to get funding than we are."

He also estimated that the Greater Exmoor proposal would require £150,000 a year of council money, plus £219,000 from the industry and at least £199,000 from Europe.

His report went on to suggest that the council could reduce its funding to a stand-alone option to £73,000 leaving the industry to pick up the tab to a tune of £292,000.

Deputy chairman and county Cllr Colin Hill said that as far as Europe was concerned, the bigger the region, the more likely it was to attract funding.

He said West Somerset could be in "serious trouble" if it stood alone against North Devon and tried to beat its bigger brother in the scramble for European cash.

After the meeting, Butlins manager Bryan Leaker, who chaired the working group that voted against a merger, said it was vital the tourism industry worked together on the project.

He said: "The industry in West Somerset and Greater Exmoor must respond in a positive manner if there is to be any chance of the area retaining its identity."

His views were echoed by Richard Hunt, chairman of the Exmoor Tourism Advisory Group, who said he was pleased councillors had not decided to vote in favour of a merger just yet.

But he said he was concerned that the business plan would have to be done during the busiest time of the year.

He added: "It is good news but it does pose problems in terms of getting the time to do it when we're up to our necks in visitors.

"Maybe the district council could fund someone from outside to actually do the plan and we'll provide the information for it."

Cabinet members have already sought assurances from Mr Howes that the authority's own officers will help to produce the business plan.

Chairman of Minehead Chamber of Commerce, Mike Padgett, said he hoped all professional groups associated with the tourism industry would be given the chance to produce business plans.

These could include both the Exmoor Tourist Association and design company Compass Group Holdings, of Minehead, which had previously offered to draw up a tourism plan for the council.

During the meeting, Cllr Hill said he would be happy to give members of the tourism industry the chance to draw up a professional business plan - and sought assurances they would receive all the help they needed from district council officials.

Cllr Simon Stokes said: "West Somerset is reliant on tourism and it is something that we as a responsible council must support."

But he accused the council of having already decided what it wanted to do and presenting that option "with a couple of woolly ones" in an attempt to get people to side with the authority.

He said a serious alternative should be costed and examined professionally in direct comparison to the North Devon option before any final decision was taken.

"The tourism industry cannot make up its mind because it has not been given an alternative option.

"Even those who want to go in with North Devon want to have more information. People are not being given a proper choice," Cllr Stokes said.

In the event, members of the cabinet voted by four votes to two to give tourism providers the chance to come up with a credible alternative based on the theory of a stand alone company.

They will have to present an interim business plan to the cabinet on September 4, followed by a final plan on October 2.

That will then go before the full council meeting on October 18.