A pensioner said he could not believe it when he was accused of indecently assaulting three girls because he did not have "any sexual interest in anybody".

Derek Whitehouse, 73, admitted at Oxford Crown Court yesterday (Thursday) regularly giving the girls between £1 and £10, occasionally "slipping" coins down their tops at his home in Kestrel Crescent, Blackbird Leys, Oxford.

But he denied using the cash to "bribe" them into allowing him to indecently touch them.

He told the jury: "I have no sexual interest in anybody. This has been the situation for a very long time. I cannot for the life of me think why these allegations have been made."

Whitehouse is accused of 10 counts of indecent assault on a female, assaulting a female under 13, causing a child under 13 to watch a sexual act, and sexual assault on a female under 16. It is alleged Whitehouse first abused two girls 10 years ago at his home when they were seven and eight. He is also accused of encouraging an eight-year-old girl to look at a pornographic magazine before indecently assaulting her on December 5 last year.

Fiona Horlick, prosecuting, said Whitehouse created a "permissive atmosphere" at his home in Blackbird Leys to attract children.

He admitted letting young teenagers smoke and drink alcohol there, but denied it was part of a "lure".

He said he had allowed the eight-year-old into his home and had given her money because she complained she was hungry and he believed she did not have a "happy home life".

Medical evidence previously given to the court showed the girl had some sexual experience. Ms Horlick put it to Whitehouse that he was responsible for this, but he claimed the girl told him she had had sex with her "boyfriend". He said: "I was shocked, I didn't think she would even know what sex was."

Nick Syfret, defending, read evidence from a social worker who said the girl told him that she had had sex with her "boyfriend", another child, while their parents were at work. At the time, the girl was four and it was prior to her meeting Whitehouse.

The jury was expected to retire to consider its verdict today (Friday).