A ROW erupted over Blackburn with Darwen Council's partnership project with a Polish town as Tory and Lib-Dem members questioned the benefits of links with Eastern Europe.

But the ruling Labour group insists its agreement with Tarnow is essential if Blackburn with Darwen is to continue receiving high levels of European money for regeneration after 2005.

A delegation from the local council, which included leader Bill Taylor and executive member of regeneration Andy Kay, visited Tarnow earlier this year to see how five years of working together on economic development was paying off in the former Eastern bloc country.

Reporting back to the council's executive board, Coun Taylor said that the Polish authorities had taken advice from Blackburn with Darwen Council and created a new industrial estate, which resembled the Shadsworth site.

Coun Conservative group leader Colin Rigby said: "I am very concerned that we are offering support to countries already benefiting from British firms relocating there.

"These countries offer pitiful wages which already make them an attractive alternative to big businesses who traditionally manufactured here.

"Now we seem to be giving them the secrets of our success by showing them how to develop good business parks and industrial estates, the only things we can use to compete against low wages."

But Coun Andy Kay today insisted Blackburn was benefiting from the agreement. He said Polish companies had shown what they could offer firms in East Lancashire at the business-to-business open day at Ewood Park.

There was also the possibility that the new industrial and business park being created at Greenbank could benefit from a joint Euro-cash bid with Tarnow developing a similar park.

He added: "Poland is currently negotiating to become a new member of the EU. By establishing formal links with Tarnow, we will be eligible to jointly access structural and cultural funds.

"Close and friendly links with our Polish partners will simplify the task of submitting successful applications for funding. Therefore, there are long-term financial benefits for us."