A RACIAL equality group has folded with the loss of six jobs after its backers withdrew more than £90,000 in funding.

Hyndburn and Rossendale Racial Equality Council voted to wind up the organisation, which has been troubled in recent years by poor financial performance and a lack of investment.

Late last year the group lost £90,000 in grants from the Commission for Racial Equality, Lancashire County Council, Hyndburn Council and Rossendale Council.

It is believed that the REC has been operating at a loss for the last few years and the funding partners no longer considered the organisation financially viable.

Members agreed by 24 votes to one to shut the group down.

All business at the group's offices in Rawtenstall and Accrington will finish at the end of March and opening times may be limited as staff use up their leave and seek new jobs.

REC chairman Bill Goldsmith, who has been involved with the group for 14 years, said: "It is sad that this organisation has come to a close after 20 years because a lot of people have put a lot of hard work into it. "When I was appointed chairman last August it was a very proud moment, but it soon dawned on me that I had drawn the short straw. There have been many difficulties which I have had to face."

Former members of the REC have voiced their intention to continue racial equality work by setting up new groups in Hyndburn and Rossendale.

A Hyndburn Council spokesman said the money previously set aside for the REC would be put towards race relations work.

Council representatives are set to meet members of the community, some of whom were involved in the REC, to find the best way of using the cash.

Rossendale councillor Jean Hayler, a member of the REC's executive committee, said the borough council was holding talks with community representatives in the borough.

She said she hoped the local community would set up its own group to carry on the political work of the REC.

Alternatives for both borough councils include giving cash to the Citizen's Advice Bureau or Welfare Rights to help with race-related work.

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.