HOUSING chairman Rafique Malik talked of resigning when Labour bosses refused to back Daneshouse as the focus for a £25million government cash bid, Burnley Council leader Stuart Caddy revealed.

He said Coun Malik and Coun Mohammed Najib spoke of quitting when Labour leaders opted instead to target Burnley Wood and Accrington Road for the massive improvement package.

He told the full council he spent two and a half hours talking to them on the issue.

But he revealed that although the Asian-dominated ward may have missed out on the Single Regeneration Budget (SRB) bid, it could be in line for a major share of an even bigger £50million package under the Government's New Deal for Communities programme.

Contact with the Government office in the North West had indicated it would look favourably on a New Deal package based on Daneshouse, Duke Bar, Queensgate and Bank Hall being developed by the council.

He denied he had made any deal with Coun Malik, offering the New Deal for Daneshouse in place of the SRB bid.

Publicly, Coun Malik said he was pleased Burnley Wood had been given the nod for the SRB bid.

Daneshouse Liberal Democrat Mozaquir Ali attacked Coun Malik's "betrayal" of the ward and said the bid was doomed.

But Independent Harry Brooks said in recent years the council had spent many millions of pounds in Daneshouse and people in other areas were demanding a share.

Councillors, he said, had to stand up and be counted and withstand allegations of racism when they supported other needy districts.

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