THE Times is already receiving enquiries about interest free loans, following the offer by the paper's owner Sir Ray Tindle to help those hit by the foot and mouth crisis.

Sir Ray has made £250,000 in total available, to be loaned to people requiring immediate assistance to make ends meet.

Other financial assistance has come from Britain's largest business organisation, the Federation of Small Businesses.

The FSB has set aside £500,000 to grant short-term interest-free loans to any FSB member suffering severe trading hardship resulting from the foot and mouth outbreaks.

Last week the Liberal Democrat group on West Devon Borough Council proposed setting up a ring-fenced disaster fund of £100,000 and emergency committee to administer it.

Cllr Nicholas Waterhouse, group leader, said: 'West Devon's economy is overwhelmingly dependent on agriculture and visitor services — both face melt-down.

'The whole agricultural sector is on the brink. The visitor sector has already crossed it, since we are effectively shut for the vital Easter period, and for an indefinate period into the summer,' he said.

'Pubs and petrol stations may cling on to their local custom and survive — hotels, guest houses and holiday lets will not, and neither will their seasonal staff, suppliers or visitor attractions.'

Cllr Waterhouse said the saddest of all was the holiday accommodation of farmers who have diversified as a hedge against falling farm income — the classic 'double whammy'.

'The 1967 epidemic peaked after five weeks but it was 16 weeks before it was effectively over. A glance at the calendar will tell you that West Devon's hospitality industry is shut for Easter, when the first wave of visitors normally revives business struggling to survive the dead period of winter.

'It will be lucky to re-open before midsummer — and visitors don't respond to the news by rushing back. A huge relaunch will be required.'

However, the proposal for the disaster fund was not adopted.

Cllr Peter Hill, chairman of the policy and resources committee which sets the annual budgets, said: 'The suggestion was basically sprung on council. There is money in reserves we can dip into and if we have to we obviously will, but I think we have to make government fully aware of the situation.'

He said the crisis in West Devon, the poorest borough in the county, was so far-reaching, the government should be responsible for some form of compensation.

Cllr Dick Eberlie, leader of West Devon Borough Council's Conservative group, said the council felt deep sympathy for the farmers.

'All fear the appalling disasters of infection and loss of livestock and, perhaps, livelihoods. All are under severe threat. All are living a nightmare. So whatever we, as a council, can do to assist and give relief we certainly should do. And I believe we are doing so.'