CIVIC leaders insist that Bury is NOT slumping into crisis, despite big factory closures and job losses.

They say the borough is thriving and attracting new firms. And they reject gloomy forecasts that the area is losing out to the South.

Their "think positive" fightback followed the loss of 80 jobs with the closure of the century-old Elton Cop Dyeing Company. And this week, the East Lancashire Paper Mill, one of Radcliffe's largest employers, has gone into administrative receivership.

But town hall bosses insist that these are not harbingers of doom, despite a report by the University of Southampton saying that Bury is in decline.

Councillor Julie Higson, chairman of economic and social regeneration, said: "Like towns elsewhere, we are seeing job losses in many of the traditional industries with which we have been associated. "However, there is a real entrepreneurial spirit and that is bringing a constant change in the jobs market and new arrivals on a regular basis.

"We have an extremely low out-of-work rate which, at just two per cent, has got to be considered as effectively full employment."

Coun Higson cited a number of companies which had and will set up in Bury.

Hundreds of jobs have been created at BT Cellnet's new call centre, making it the borough's largest private sector employer.

Local developer Ron Wood has set up Castlebrook Business Park, phase one of which is fully let.

Some 600 jobs will arrive when PC World Business Direct completes its offices and warehouse at Heap Bridge, and the neighbouring Bury Village Hotel will provide jobs when it opens in the summer.

Small industrial units are being created at Peel Mill in Bury, while Businesslodge is providing space and support for small high-tech companies.

Coun Higson cited a recent report on North West towns which said that Bury had done very well against threats from Manchester and the Trafford Centre, largely through town centre pedestrianisation and shopping.

She added: "It is always sad to see established companies suffer job losses or close. We will always strive to give whatever support we can to prevent such things happening.

"At the same time, the world of work is changing and it is marvellous to see that Bury, which has the advantage of being small and quickly adaptable, is changing with the times."