BOSSES of the former Michelin tyre plant said thank-you to Burnley for 40 years of hard work by announcing a £1million fund to boost local business.

The 'Michelin Development - Burnley' fund has been set-up to counteract the loss of 452 jobs when Michelin closed its Burnley site in October 2001.

It is hoped the fund will help businesses in the town and create new job opportunities. Almost all of the people who lost their jobs have since found new employment.

Since October Michelin has been working with the North West Development Agency, Burnley Borough Council, Business Services East Lancashire and The Royal Bank of Scotland to identify the best ways of assisting businesses to counteract the loss of the jobs in the town.

The fund will be open to all businesses in the Burnley Borough Council area, or those relocating to the area.

John Lancaster, Michelin Tyre plc Burnley site manager, said: "We are conscious of our obligations to the Burnley community and our employees in relation to the commitment shown to Michelin over the previous 40 years.

"Our underlying objective is to support the creation of quality and sustainable employment for the community."

Stuart Caddy, leader of Burnley Borough Council, said: "The closure of such a prestigious and efficient plant was a body blow to the town.

"This news is most welcome as it will now help us to create more quality jobs locally, particularly on the Heasandford Estate site, and to boost the local economy generally.

"I thank Michelin for establishing this fund and we look forward to working with them and the North West Development Agency, the new owners of the site, to maximise its impact and attract new employers to Burnley."

John Burrows, North West Development Agency Director of business development, said: "The agency welcomes the fund and is delighted to be involved in this partnership. It is crucial that we maximise Michelin's investment for Burnley's future economy and for the benefit of the north west as a whole. We are confident that the fund will be a lasting legacy for Burnley."

The fund will be open to applications in August 2002.