COMMUNITY projects on estates in South West Burnley have been closed down and 15 staff are being made redundant because of financial concerns.
Ending this month are a furniture scheme, food co-op and a child and youth project all run by the South West Burnley Community Development Trust, set up 10 years ago with the help of government cash.
The Trust was due to be shut down at the end of the financial year when government funding ran out but has been brought to an early close by a decision of the Burnley Council's regeneration management committee, which has overall control of the group.
It has expressed concerns over the Trust's financial stability and its failure to meet strict government single regeneration budget and European regulations on the management of public funding.
Council leader Stuart Caddy said: "There have been more outgoings than what has been coming in from grants. Rather than getting into further problems we decided to close down the projects. We will now have to regroup and and look at the situation again later."
He added: "They have taken too much on and and not been able to control the situation."
He added that when he met the trustees and told them of the decision they were distraught.
Coun Caddy, who is also chairman of the regeneration management committee, said 30-day redundancy notices had been served on the staff of six full-time and nine part-time workers and described it as a sad day for South West Burnley.
He added: "There is no reflection on them. The staff have been absolutely tremendous with us. They are helping us to close it down over the next few weeks rather than walk out on us.
"The trustees have been responsible and have to accept that."
He said: "For the past ten years South West Burnley Community Development Trust has provided the community with excellent projects.
"The community and all those concerned with the Trust will need to support each other. Mistakes have been made and it is now about accepting that there have been weaknesses but learning from their strengths."
Coun Steve Wolski, Burnley Council's executive member for regeneration added: "The Trust has done some excellent work in South West Burnley. However, the regeneration management committee has made the correct decision due to the continuing financial problems of the Trust."
Hit by the early closures are the furniture project which helps needy families; the food co-op which offers local residents with mobility difficulties the opportunity to order their groceries and have them delivered to their home and a child and youth project with the aims of enabling children and young people to realise their rights and responsibilities as part of the community through sports and team activities, counselling and monitoring. The project has also raised awareness of the impact offending behaviour has on the youngsters themselves and others in the community.
No trustees were available to comment.
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