POLICE in Blackburn have investigated the BNP after a leaflet was distributed claiming a hostel for asylum seekers was being created in Witton.
The leaflet, 'Defending Your Community,' warns that a former nursing home in Spring Road is to be transformed for the purpose.
The claim has been refuted by Blackburn with Darwen Council, which says the town has already reached its Home Office quota of 700.
Concerns, which prompted a 2,000-name petition to the council, were raised after officers received an application to 'house multiple occupants' at the nursing home. The police became involved when two Blackburn councillors, John Milburn and Malcolm Doherty, complained about the leaflet.
Coun Milburn said: "I got in touch with the police because we all abhor the way the BNP are going about this particular campaign."
The councillors were concerned the leaflet may constitute incitement to racial hatred.
After examining the leaflet, which ends with the line, "It's Your Community Not Theirs," police have decided to take no action.
Chief Inspector Tracey O'Gara, of Blackburn Police, said: "We have seen the leaflet and have examined the contents. We are confident that no offences have been committed by the production and circulation of the leaflet and will not be taking the matter further."
Coun Maureen Bateson, executive member for consumer affairs, said: "Leaflets have been distributed to many people in this borough trying to raise people's fears about asylum seekers and refugees.
"I deplore these tactics and would, instead, point to the positive contribution that people of all backgrounds have made to this borough for many years.
Earlier this week, a petition with more than 2,000 names was handed in at the town hall's planning department.
Elizabeth Barrett, 46, of nearby Cavendish Place, claims that they collected 1,000 signatures in 24 hours.
She said: "We don't know enough about the plans. The signs went up then we got a letter through the door. I wanted to know what they were going to do with the home, so I rang them.
"We are not saying that we don't want people there, just that we want to know more about who is going to be there," Elizabeth added.
A spokesman for the British National Party, Simon Bennett, said that despite the councillors' concerns they would continue to campaign in the area.
Mr Bennett added: "The leaflets were put out because there were a lot of unanswered questions about the proposals.
"We raised the points on behalf of the residents. We wanted to let them know how to get answers out of the council. Until we have got some cast iron assurances from Blackburn with Darwen about the proposals for this home, we will carry on."
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