PLANS for a new jobs and benefits centre in Burnley could be scrapped if council bosses don't to sell the town hall car park to developers.

JobCentre Plus want to buy the site to develop their new high-tech base and say it is the only site in the town they will consider.

If Burnley Council refuses to sanction the move JobCentre Plus say they will be forced to look outside Burnley for their development, a move which would have devastating implications for the local economy.

Plans from Job CentrePlus include closing the existing Job Centre in Bankfield and replacing it with a new centre which will allow social services staff to work alongside employment staff and provide high-tech help for jobseekers.

The organisation originally wanted to move to the former Pioneer site, but Burnley Borough Council refused the planning application in January and said the site must remain retail space as a gateway to the shopping centre.

Although the council has prepared a list of 18 alternative sites, JobCentre Plus says the Town Hall car park is the only site suitable for their needs. They are also keen for a quick decision from the council after indicating they would be aiming to complete the new base by October 2004.

They say the new centre would have an "immeasurable" impact and would open up access to benefits and job search facilities for thousands more people in the town, which has around 11,000 people on at least one of the main benefits.

The move would also secure the existing 300 jobs and create at least 50 new posts but Nelson has already been suggested as an alternative if no agreement can be reached in Burnley.

The car park site has been earmarked for development for a number of years and the Jobcentre plus would take up around half, with underground parking provided for staff.

However the council is concerned that by selling the site, which would reduce the 120 parking spaces by around a half, a prime parking location for shoppers at weekends and people visiting the Mechanics Theatre will be lost.

A spokesman for JobCentre Plus said: " It is vital that all services to people of working age are delivered from one location if the link between work and independence is to become a reality for people who believe they have no option other than a life on benefits.

"The possible impact of moving even five per cent of these people into paid jobs is immeasurable, not just in terms of their personal lives, but in the amount of spending power this would release through those families.

He added: "The current situation is that we have put our plans to the council for the town hall car park site and are now waiting for feedback."

Burnley Borough Council's property consultancy manager Michael Birdsall said: "Burnley Council is fully committed to creating a new JobCentre Plus and hopes to continue negotiations to find the best site for both JobCentre Plus and the people of Burnley."