PETERSFIELD'S In Bloom, town marketing initiative and Christmas lights group have been given a £2,500 cash boost from the town council.

The Petersfield Golden Jubilee Committee will be told that £1,650 is available if it needs it and £500 is set to be spent on a new computer programme system at the town hall.

Money will also be put aside for drainage works at the Heath pond and for a set of goalposts at the Avenue playing fields.

At a meeting of the finance and general purposes committee last Thursday chairman Dr Brian Keefe revealed that the council will have money left over for the organisations from a VAT settlement.

Last year the town council was told it would face a bill of between £40,000 and £50,000 for not paying VAT in the correct way for the last three years.

Money had been put away to deal with the problem by former committee chairman George Watkinson. In the meantime grants to the In Bloom, marketing initiative and Christmas lights committees were reduced.

At last Thursday's meeting Dr Keefe said it was necessary to treat the problem with caution. He said: "When dealing with VAT it is necessary to wear both belt and braces.

"VAT moves in very slow and mysterious ways. HM Customs have not imposed a fine on us but they still could. It would be less than prudent for us to spend all that money now."

Although the council has not yet been given the final figure for the bill from officers at HM Customs, Dr Keefe said the committee was ready to reconsider the applications for funds.

Dr Keefe said: "Last year our town clerk and officers went through the budget with a fine tooth comb to look for items we could reduce.

"I don't believe we were being ungenerous at the time, but I think we can do more for these groups now."

The town council has also recently agreed to a grant of £11,000 to Petersfield Rugby Football Club to pay for temporary changing rooms next season.

Dr Keefe pointed out that this agreement was subject to the council receiving confirmation in writing that the payment could be made under capital items.

Town council clerk Barbara Macken has received a letter, but councillors expressed concern that it does not state categorically that the grant can be classed as capital.

Councillors eventually agreed to make the payment partly from the grant fund and partly from the money left over from the VAT bill.

The town council had received a quote of £1,400 to carry out drainage work at the Heath, which includes the use of CCTV cameras to assess the problem and work to the main pipe.

But John Crowhurst claimed the work would be a waste of time.

He said: "We should get rid of the pipe completely because I believe the problem will only come back again. I think we should leave an open drain at the number one fairway all the way to Pulens Lane and Heath Road East."

Councillors agreed to put the money aside while the various options to correct the drainage are looked into.