OF the numerous benefits expected to flow from the deal today in which Blackburn with Darwen Council hands over the running of some of its functions to the giant private-sector support services company Capita, perhaps the most significant is the potential the switch has for East Lancashire's future prosperity.

For, apart from the considerable savings the town hall will reap in transferring staff and services -- ranging from housing benefits to property management -- there is the exciting prospect of the hundreds of new jobs that will be created as the company sets up a new business centre in Blackburn.

But the crucial aspect for our region is the nature of those 500 extra jobs -- the white-collar type.

For too long East Lancashire has been over-dependent on the manufacturing sector -- and suffered for it with heavy job losses and closures during economic downturn. As a result, apart from some significant exceptions, notably in aerospace, it has lacked the sort of diverse skills base that helped other areas weather hard times and retain and attract investment.

Now, triggered by the council's move, our region is given the hope of becoming an office skills centre, working for not just Blackburn with Darwen but other authorities and businesses, creating still more white-collar jobs and the education and training services to support this sector while raising the region's wage levels and boosting spending power, prosperity and employment generally.

One qualm about the deal with Capita may be the chaos that housing benefits services in Lambeth were plunged into after the company began running them for the London borough.

But assurances have been given that the mistakes there are been recognised and are being mended and we look forward to Capita delivering not only cheaper and better services for Blackburn with Darwen, but also heralding a new era for East Lancashire's entire economy.