One of Alresford's biggest employers, Hankins garage, is closing after more than 100 years' service to the town.

The 14 staff at the business in West Street have been made redundant, though all were kept informed of company plans and all have have had job offers, said the managing-director, John Hankin.

Mr Hankin (51) plans to open another garage, buying and selling classic cars, in the next12 months.

Spiralling costs and changing operating conditions have forced the closure of the garage, which is now a dealer for the Malaysian-manufactured Proton.

"Reaction in town to news of the closure had been pretty mixed," Mr Hankin said. "Some people have been violently rude, while others have been sympathetic.

"There many reasons for closing," he told the Hampshire Chronicle. "First, it has got very expensive to be in business in the centre of the town, for rates and everything else.

"Secondly, it has become more difficult to sell things like petrol, because there is definitely a two-tier system in operation, where other garages are supplied more cheaply. Rural garages are having to pay more for their fuel from the big companies than city garages.

"Then, a fortnight ago, a customer who came in for a service said he had bought a new car from a wholesaler at a cheaper price than I could.

"Restrictions are being placed on garages like mine. New EC legislation on health and safety will require alteration of the pumps on the forecourt to suck away vapour, which is thought to cause cancer. It would cost between £60,000 and £70,000 to do it here, replacing the pumps and pump lines and other work."

Another factor was block exemption, where a manufacturer allocated a certain amount of "exclusive" territory to a franchise dealer.

"This will happen next year and it means anybody who comes up to the franchise standard can sell cars. The territory allocated to a franchise dealer will go.

"Also, its very hard in Alresford to get staff. I have been looking for a salesman for 18 months and an accounts lady and a mechanic for a year. It's a small town. People prefer to work in bigger towns and cities."

The business started on its present site in 1913. "We don't know when it started originally," Mr Hankin said, "but certainly it was before the turn of the last century."

Hankins were dealers for Austin Morris and Rover and sold Fords until 1939. The company also sold Armstrong Siddeley and Jaguar.

John's grandfather, Thomas Charles, started the present business. It was continued by Alex Hankin, the former magistrate, councillor and father of John, who died a year ago.

Mr Hankin said he planned to sell the substantial West Street site to be developed. "And I'm looking for premises for a new business in the Winchester area.

"I'd like to produce a classic car park, where all the skills connected with vintage car are in one area--where one can buy a car, have it maintained, upholstered. There are lot of classic cars about in this area."

He went on: "At the end of July, we will close. We care for our staff. One has been here 46 years and two for 30 years. There is a feeling of sadness, to a degree, but one has to look forward to other things.

"I am going to have some time off to spend with my family, after working 14 hours a day, six days a week. I shall miss the clients we have had over the years, including five generations of one family who have been here to have their cars serviced. But I shall still be dealing with people. "

John Hankin's passion for cars is evident when he talks about his vintage Rolls and Adler. The latter, a German car has been a big hit in Winchester's twin town of Giessen, where Mr Hankins and other Hampshire enthusiasts have been welcomed for vintage car events).

On the walls of the office are photographs of many classic old cars, including a 1937 Adler Rennlimousine which, even after more than 60 years, still has a futuristic look.