AN investigation into allegations of price fixing in 11 Bury care homes will continue, according to the Office of Fair Trading.

The news comes after Bury Council struck a compromise with Bury Care Providers Action Group over the level of fees paid towards referrals from the social services department.

But Boyd Farrar, chairman of the action group and general manager at Heathlands Village in Prestwich, said the outcome would have a positive affect.

The OFT launched its investigation in December when it raided the privately-run homes amid allegations of a cartel. The group, together with a home in Wilmslow, were accused of working together to illegally fix prices for residential nursing and care services.

At the time, the action group was suing Bury Council through the High Court for a "fair economic rate for care services". It had also applied for a judicial review to see if the council had followed correct procedures in setting the rate.

Now the group has struck an acceptable deal with the council, Mr Farrar said he was looking forward to "working in partnership with the council".

He said: "I am aware the investigation is still ongoing but we are hoping that the deal with Bury Council will send a message to them of the flavour of things in Bury. Representations will be made to the OFT at the appropriate time and we will continue to defend our case vigorously."

The homes under investigation are:

Abbeydale, Bolton Road, Bury

Abbeywood, Market Street, Tottington

Alexander Nursing and Residential Home, Rochdale Road, Bury

Bankfield Premier Care, Gigg Lane, Bury

Beaumont House, Church Lane, Whitefield

Brookdale Premier Care, Bury

Bank House Nursing Home, Brandlesholme Road, Bury

Cameron House Nursing Home, Cameron Street, Bury

Heathlands Village, Heathlands Drive, Prestwich

Oak Lodge Rest Home, Bury New Road, Prestwich

Walshaw Hall, Bradshaw Road, Tottington.