BOSSES at Barnoldswick's Rolls Royce plant today reassured the workforce there was no risk to their pensions despite claims the aerospace company's fund is facing a £1billion deficit.

Finance bosses slammed a report by house broker Merrill Lynch and denied there was a £1billion black hole in the scheme.

The company said the figure could only have been gathered using over-simplistic assumptions.

Peter Barnes-Wallis, director of financial communications for Rolls Royce, said: "I don't think anyone has suggested pensions are at risk. I think there has been some unnecessary alarm raised over what a pension fund would look like if it was valued now. which in many ways is irrelevant.

"We take a long-term view and review the assets and liabilities every three years. The next review will be March 2003, so it's very uncertain what the outlook will be then.

"If we speculate that the current market conditions will prevail, then we assume that we will be putting extra money in the funds.

"If further funding is required next month then we will make it."