A COMPANY has closed with the loss of 44 jobs just a month after its boss blamed Britain's reluctance to join the euro for it going into administration.

Oswaldtwistle-based Stuart Engineering, which was run by Burnley councillor Gordon Birtwistle was placed in administration.

A spokesman for administrators KPMG today confirmed that the business operation was closed because it could not be sold.

The company, which manufactured products for the offshore oil industry and hydraulic and telescopic booms, was established in 1973 and had a turnover of £1.9million.

Coun Birtwistle, Burnley Council's executive member for the town centre and former leader of the town's Liberal Democrats, last month blamed the Government's reluctance to join the euro for earlier redundancies.

He said UK firms could not compete with countries within the euro zone because of higher interest rates. They also faced competition from companies in Eastern Europe where their labour costs were considerably cheaper.

Coun Birtwistle declined to comment on the business closure today. He had been the managing director of Stuart Engineering for the past 10 years.

In 1999 he warned of the dangers of not joining the single currency when top Liberal Democrat officials toured his factory as part of the European elections and urged the Government to join. The company originally shed jobs when it lost a foreign order last month.

Thirty-eight members of staff were made redundant on Thursday. A further six are currently completing work in progress but will lose their jobs when that has been finalised.

When the company was placed into administration, Mike Murray, chairman of Business Link East Lancashire, said the firm's difficulties were symptomatic of the problems faced by manufacturers.

But Ribble Valley Tory Nigel Evans said Mr Birtwistle's claim was "clearly ridiculous" and that many firms would be worse off if Britain joined the single currency.

Michael Damms, chief executive of East Lancashire Chamber of Commerce, said he doubted that being in the euro would have saved the lost contract.

KPMG said at the time there would be no further threat to jobs and the company would continue to trade as normal.