Hyde Park has suffered "wear and tear" from commercial events

The National Audit Office (NAO) found many historic buildings, walls and gates were in need of repair.

And it has told the Royal Parks Agency, which runs the 5,000 acres of parks, to manage commercial events better.

Problems with two events in Hyde Park meant the agency earned �500,000 less than expected in 2002 to 2003, the report found.

Organisers made a loss on the Star Trek exhibition, which did not attract as many people as expected.

Also, Pride in the Park was not paid for up front and promoters could not deliver the agreed amount, the NAO reported.

But a spokesman for the agency said it had not made a loss on either event, it just had not made as much profit as predicted.

It spends �6.9m a year on maintenance but said it is looking at the backlog and the amount of money needed.

ROYAL PARKS COVERED St James's Park Green Park Bushy Park Hyde Park Kensington Gardens Regent's Park (including Primrose Hill) Greenwich Park Richmond Park

Toilets, pathways and the 105 miles of roads are among the areas which need to be improved.

Hyde Park is also said to be suffering "substantial wear and tear" after various concerts and exhibitions.

The agency plans to hold two events a year in Greenwich Park, Regent's Park and Kensington Gardens and one on Horse Guards Parade, between 2003-2006.

Conservative MP Edward Leigh, chairman of the Commons Public Accounts Committee, said there was a fine balance between raising money from commercial events and preserving the tranquillity of the parks.

He told BBC London: "My own view is that we have got to preserve the Royal Parks as much as possible as a place of peace, quiet and rest.

"There's plenty of noise and life going on in the rest of London and there has to be some kind of 'green lung' and quiet place for people to go to."

'Meeting the challenge'

Other recommendations include making the parks more accessible to disabled people by introducing a sensory garden using tactile displays and audio information.

A spokesman for the agency said a lot of work was being done on raising funds for the park including setting up a charity, the Royal Parks Foundation, and winning �2m lottery funding to build a new sports pavilion in Regents Park.