A CLIQUE of non-elected Labour Party members influenced key decisions on Blackburn with Darwen Council, a secret report into the resignation of six councillors has revealed.

But an internal inquiry, prompted by the walk out which left the council in turmoil just days after June's elections, has cleared the local party of racism.

The report, which leaves the way open for the six Asian rebel councillors to re-join the party, makes a series of recommendations, including:

l Council executive members should undergo quarterly performance reviews to make sure they are doing a good job

l Person specifications should be completed on all members so they can be matched up to the most suitable role for them

l Work to be done within the Queen's Park ward by both Asian and white councillors to ensure that the group wins back community support

l More consultation with the public on ideas and decisions

l A letter of apology to be sent to Coun Salim Mulla over allegations made following the elections

l Former council leader Sir Bill Taylor to be given a role within the party to promote community cohesion

The Labour party was today criticised for not making the report -- which it insists is an internal party document -- public.

But a copy of the report by Lord Victor Adebowale, the peer brought in by the North-West Labour Party to investigate the circumstances, has been seen by the Lancashire Evening Telegraph.

And it says he found a perception that the clique had influenced decision making within the council was one of the reasons which prompted the walk out.

He criticised the party for failing to investigate accusations when they arose and failing to keep meetings under control. He also called for allegations made within the group, or in the council chamber, to be investigated immediately.

The six, Mahfooz Hussain,Yusuf Jan-Virmani (Audley), Faryad Hussain (Queen's Park), Salim Mulla (Queen's Park), Parwaiz Akhtar (Bastwell) and Iftakhar Hussain (Bastwell), claimed they walked out after being made scape-goats after Labour leader Sir Bill Taylor's election defeat in the mainly-Asian ward of Audley, an allegation which they said was racist.

In the report, marked strictly confidential, Lord Adebowale writes: "There are clearly long-standing issues that may not have been dealt with within the party that led to a perception by some Asian members that there was an inner-clique of non-elected Labour group members who influenced decisions."

The Labour Party confirmed today that all six councillors had received letters, saying they could apply to return to the Labour Party.

Labour leader on Blackburn with Darwen Council, Coun Kate Hollern, said: "We welcome the recommendations and feel vindicated.

"I think it may have damaged the trust of the public and it is important we win that trust back."

Coun Colin Rigby, leader of the council's Conservative group, said the report should be made public.

The six walked out shortly after Coun Mahfooz Hussain lost his post as executive member for education. During the year, two schools under his control had been placed in special measures.

The resignations plunged the council into turmoil because it cost Labour its majority. When talks between the independents and the Lib Dem and Conservative parties failed, a deal was brokered for the six to keep Labour in power.

Senior members of the Labour Party today said action was being taken to restructure the party so that, when key decisions were made, non-elected members could not vote or be present when the vote was being taken. It pledged to implement the recommendations.

Coun Mulla said: "I have been involved with Labour since the days of Barbara Castle. I want to go back. Now I have received an apology for these horrible accusations, I hope this can happen."

Coun Jan-Virmani, leader of the independents, said: "I think the findings of the report are fair and there are issues for both sides to consider."

Coun Colin Rigby, leader of the council's Conservative group, said: "They went to the press and said there was an inquiry, but it doesn't seem reasonable that they then shouldn't release the report.

"It is something they will have to live with and the reality will show itself at the next election."

Coun Paul Browne, leader of the council's Lib Dems, said: "Everybody, especially those who voted for them, should be able to read what the reports findings have been based upon."