A LIBERAL Democrat leader today challenged Labour to sue him as the row over Pendle elections fraud allegations flared up again.

Members of Pendle Labour party have demanded an apology after members of the Liberal Democrats accused them of a postal voting scam during the council elections in May 2002.

Crown Prosecutors decided at the end of March that no charges would be brought because of insufficient evidence.

The decision came after a police investigation was carried out amid claims and counter claims by Labour and Liberal Democrat members surrounding the misuse of postal voting.

But Lord Tony Greaves, the Pendle-based Liberal Democrat peer, refused to apologise and today defended his decision to complain to police.

He added: "I would challenge the councillors involved to sue me.The only other way to help sort this out is to beat them in the ballot box. The Labour councillors should be aware that we will be watching them like a hawk at this year's elections."

A file on the police investigation was prepared and passed on to the Crown Prosecution Service, who decided there was insufficient evidence to take it to court.

The allegations surrounded claims that almost 1,000 votes in the four marginal wards of Bradley, Brierfield, Southfield and Whitefield were issued in the name of electors, but instead of going to the homes of the voters, were sent to a number of 'common addresses.'

Coun Azhar Ali, leader of the ruling Labour group, said: "The inquiry has taken several months and the time of police officers checking out these allegations.

"I know that Lord Greaves won't give me a personal apology, but he should apologise for the sake of the tax payers who have had to foot this bill."

Coun Pauline Allen, Labour Party President added: "Clearly the cost of this investigation falls on the council tax payers of Pendle and I think that those who started these bogus allegations should be made to pay back this money to offset the council tax."