Workers in Colchester could be charged £650 a year for using company car parking spaces.

Under plans being put forward by Colchester Council the charge would reel in £1.7 million a year to improve public transport.

The proposals - to be discussed on Tuesday - are in line with the Government's Intergrated Transport White Paper and its Breaking the Log Jam consultation paper.

It aims to reduce town centre traffic problems and encourage more use of public transport.

David Green, Colchester Council head of enviromental policy, said workers parking in free spaces at their place of work would be charged.

An example would be employees of Royal London insurance company given spaces at the company's Middleborough car park.

But workers who use public car parking spaces paid for by their employer would not be affected.

Mr Green said: "Until the pilot schemes take place, it is difficult to say but in theory there could be people exempt from the charges if, for example, they ran a small business." Mr Green added that the council would try to set public car parking season tickets at a rate similar to the charge for workplace parking.

Eight areas were wanted to take part in a national pilot scheme next year but Essex County Council declined to put forward Colchester. No areas have yet been chosen by the Government.

Mr Green added: "We understand the public is saying it wants to see congestion reduced and air quality and public transport improved, so that is what we would be trying to do."

Long term plans to look at the possibility of banning cars from Colchester town centre are being considered.

The "car-free historic core" scheme is one of the most far-reaching options being considered in ongoing study into easing jams and pollution. Traffic would enter High Street via Head Street only and leave via Queen Street.

Converted for the new archive on 19 November 2001. Some images and formatting may have been lost in the conversion.