WATCHET'S weekly open air market will have local stalls only this season after negotiations with the commercial operator who helped expand the initiative broke down.

West Coast Markets is threatening legal action against Watchet Town Council - which organises the Esplanade market - after accusing the authority of 'doing a u-turn'.

The company, which also runs weekly markets in Minehead, struck a deal with the council to introduce commercial stalls last year.

Spokesman Brian Davies said in 2010 his company had paid an agreed fee to the council - regardless of the number of stalls - and taken the pitch money for all the stalls, including the local element.

In addition, it had covered the cost of advertising the market.

But Mr Davies said the council now wanted the money from the local stalls.

"Last year there were only about four local stalls but this year the number has risen to around 12, which reduces the amount of ground available for commercial stallholders," he said.

"The council still wants us to pay the fee and we have already spent money on advertising.

"It's just not viable without retaining the money from all the stalls.

"I'm very disappointed. We have run markets in this area for 36 years and we don't feel the council has treated us fairly.

"We had a verbal agreement that the terms and conditions would be the same as last year and they have done a u-turn.

"We shall be consulting our solicitors over this."

Council chairman Cllr Sally de Renzy-Martin said everyone involved in the joint venture was disappointed.

"Despite efforts from all parties, a compromise could not be found," she said.

"As a result, the local market currently trading on the Esplanade will not be joined by the commercial market for the foreseeable future."

Cllr de Renzy-Martin said the main reason for the breakdown in negotiations was that the company had felt there would be a duplication of stalls provided by both the local and commercial stallholders - although Mr Davies insisted it was just one of the reasons.

"Watchet Town Council put an offer on the table to reduce the fee paid by the market operator but he declined," she said.

Council clerk Sarah Reed said the authority had tried to be as understanding as possible but was facing increased costs this year.

"We have to pay West Somerset Council £2.50 for each stallholder's vehicle parked on the East Quay - a fee which the district council waived last year.

"In addition we have had to take on the ownership of the gazebos used by the local stalls and we have also had to take out market insurance."

Mrs Reed said the number of local stalls last year was definitely more than four and that under an agreement with the district council, which owns the Esplanade and had to give permission for the market, it had to be a third of the total number.

"The success of the local element of the market is due in the main to a small group of local people without whose hard work the market would not run," she said.

"They are also supported by council's ground staff, who put up and dismantle the market tents and oversee the market, together with administrative support from the council's office staff."

Mrs Reed said the council believed a mix of local and commercial stalls at the weekly summer market was good for the town and its economy and would look at the possibility of finding an alternative operator for the 2012 season.