MORECAMBE has lost the money-spinning Punk Festival to arch rivals Blackpool.

Local retailers and hoteliers are angry that the council failed to keep the high profile event, which generated an estimated £1.3 million, in the resort.

But the council has vowed to organise their own festival, maybe even a rival punk festival, which will attract overnight visitors.

Morecambe Chamber of Trade claimed the news was a body blow for the resort and spokesman John Bates said: "It's a tremendous loss Morecambe can ill afford. We are a holiday resort or nothing. We feel the council backed down too early in their conflict with the market traders."

The row with market traders over the use of the Festival Market as a venue clouded negotiations between the council and punk organisers, Holidays in the Sun.

And this year organisers have gone for the Winter Gardens in Blackpool despite the council making every effort to meet the promoter's requirements, including guaranteeing an appropriate venue to host the event.

A disappointed council leader, Cllr Heath said: "We were extremely committed to having the Punk Festival in Morecambe again and were able to offer them an appropriate venue and the kind of support which helped make the event so successful in previous years.

"It is therefore disappointing that they have decided to go elsewhere for 2002 but we hope they will return next year.

"However, I can assure hoteliers and local businesses that this Cabinet is determined the forthcoming season's Festival Programme will be better than ever, attracting thousands of overnight visitors to the resort. We are wholly committed to generating overnight stays and will be looking very closely at the Festival and Events programme due to be presented to Cabinet next week.

Cllr James Airey, Cabinet member with responsibility for regeneration, added: "Last year's event was exceptional although it must be remembered that this was a very special anniversary for punk and it is unlikely this year's event would have attracted such numbers. Equally, the council has an exceptional record for delivering events which attract thousands of extra people to the area.

"We are dedicated to continuing this policy in order to help the hoteliers and local businesses by attracting even more people into the resort. All of this will be taken fully into account when we finalise plans for the 2002 Festivals and Events Programme."