COUNCIL chiefs in East Lancashire who were left in limbo over a possible share of millions of pounds of Euro grants are still waiting to find out if they have hit the jackpot.

But there are fears that continued haggling could put Britain to the back of the cash queue.

The Government is finalising which areas will be given Objective Two money from Europe, two months after the original announcement was scrapped following a reported row between Deputy Prime Minister John Prescott and Trade and Industry Secretary Stephen Byers.

They were said to have clashed over how the list of eligible areas should be drawn up and which areas should be included, leaving Lancashire County Council and Blackburn with Darwen Council in the lurch over whether they would receive a share.

A leaked government list drawn up by Mr Byers' department earmarked the entire boroughs of Blackburn with Darwen and the Ribble Valley for money, but John Prescott was understood to want the list drawn up on the basis of council wards rather than whole boroughs.

The disagreement gave towns which missed out on Mr Byers' list, such as Preston, the chance to press their case again.

Councillor Malcolm Doherty, leader of Blackburn with Darwen Council and chairman of the East Lancashire Partnership said today; "We know that detailed and sensitive negotiations are nearing completion in government circles. "We knew the national leaked map, which included the whole of Blackburn with Darwen but little of the rest of East Lancashire, was not likely to be sustainable as it was so much at odds with the North West Regional Development Association's position, which we supported.

"We have been lobbying with our MPs, Jack Straw and Janet Anderson, and other East Lancashire MPs for as much coverage as possible for East Lancashire.

"We know there is bound to be a reduction in overall coverage because of the third reduction in population coverage which is required at the same time as accepting some new areas, particularly rural areas.

"We also know that there has been pressure to shift resources to London from the North generally.

"We sincerely hope that when the announcement is made, which is now expected in some weeks' time, that significant parts of East Lancashire continue to benefit from European Objective 2 funding.

"Whatever the outcome we will continue to work together within East Lancashire to be mutually supportive and build on the excellent early work of the East Lancashire Partnership in bringing together partners from all sectors to improve the life of our residents. "The danger in the continuing delays on agreement to the map is that considerable time will be lost at the beginning of the new programme which is due to start on January 1, 2000.

"Precious time will be lost in the implementation of schemes to benefit the area and this country could be at the back of the queue in terms of final approval by Brussels."

County Hall deputy leader Coun Frank McKenna said: "Lancashire has been a major beneficiary of Euro monies in the past and we can demonstrate excellent use of those resources.

"The county needs continued support to tackle local problems caused by economic and social deprivation.

"I understand the Government will be identifying eligible areas on a ward basis. This approach strengthens our case for funding for areas such as Burnley.

"I am urging the Deputy Prime Minister to award our deprived wards the status to make them eligible to receive this vital Euro funding."

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