THE economic analysis of the problems of East Lancashire by your business editor, Andrew Calvert, in your business supplement (LET, September 24) was first class, but also a damning indictment on the failure of central and local government to deal with the problems.

The title "Doing it on the cheap" said it all. Working people have had that cross to bear since mill owners, such as Sir William Henry Hornby MP was exploiting them in his mills, and at the same time using his parliamentary privilege to oppose any legislation designed to improve their lot during the 19th century.

Technology has improved living conditions, but the relative inequalities of wealth and incomes are as unfair as they ever were.

Recent statistics show the borough of Blackburn with Darwen still in the top ten per cent in the league of deprivation. Incomes and wages remain among the lowest in the UK, with the average wage in East Lancashire a staggering 15 per cent below the national average.

The article refers to this being a reason which encouraged the London-based Capita Group to privatise key public services, with the blessing of Blackburn with Darwen Council.

As with all other privatisation, the attack on terms and conditions of employment began almost immediately. Transferred staff have limited legal protection, but newly-recruited staff to Capita are on their own to negotiate their own terms and conditions.

It was said that there would be substantial savings and it "was a damn good deal." A good deal for whom?

It may be that it benefits the income and expenditure of the council, and the jury is still out on that one. But as far as the real economy, that is the income and spending power of the people of East Lancashire, it is as welcome as myxomatosis is to the rabbit population.

Hopefully, the health service, local authorities and other public bodies in the area will not follow suit, but if they do, let their employees be under no illusions -- privatisation means cuts in terms and conditions of employment.

COUNCILLOR DON RISHTON, Livesey Branch Road, Blackburn.