COUNCIL bosses could bring an end to the Lord Square problem by buying Blackburn shopping centre, opposition councillors have claimed.

But the move, suggested by Blackburn with Darwen Council's Conservative group at last night's budget meeting, was branded "flaming bonkers" by the man in charge of regenerating the area.

The shopping centre is owned by Standard Life, the Edinburgh-based pensions and investments firm.

It put the centre up for sale in October last year to release capital to help cover a short-fall in cash caused by the stock market crash.

The firm has come under fire over the last two years for failing to find the cash to revamp the Lord Square part of the complex, which is now in danger of jeopardising the vitality of the whole town centre, according to council reports.

Standard Life has said rents generated on the square do not justify a revamp.

A deal to sell the centre to London-based Tops Estates collapsed last month. This is believed to have happened when Tops asked to pay less than the £102million-plus price tag.

Under the Tories' proposals, the council would use a mixture of its own money as well as applying for government grants to raise the capital needed to buy the shopping centre.

They would also ask the government for permission to borrow extra money from banks on the grounds that it was in the interests of the borough to do so.

Coun Michael Lee, Conservative finance spokesman, said: "Councils are barred from running businesses unless it can be proved to be in the interest of citizens' wellbeing.

"I think we would have a very strong case here because there is no doubt that the council owning the shopping centre would give us a much a bigger say in the regeneration of the town centre, while it would also be a guaranteed source of income.

"It may be that we would have to team up with a private buyer to raise all the money, but at least we would have a large share and therefore a large say in what went on."

He said Government grants could then be applied for to help refurbish Lord Square, in the same way as money for the council-owned Blackburn Pavilions has also been found from the North West Development Agency.

Coun Lee added: "We feel this kind of radical approach needs to be pursued if we are to ensure the redevelopment of our town centre.

"This opportunity, with financial pressures on the current owners and low interest rates, will not present itself again."

But Coun Andy Kay, in charge of regeneration at the council, said: "This idea is flaming bonkers. It is an absolute non-starter.

"The council has a share, under 20 per cent, in the shopping centre, and we will be using that say to try and ensure we end up with a shopping centre owner which is committed to investing in it, rather than just making money for pensions.

"We hope to exercise that influence to help continue the regeneration of the town centre, but this council does not see itself as a shopping centre magnate.

"I have no idea where the money would come from to fund such a project, and I certainly do not think it is practical."