COLLEGE bosses have been criticised for giving staff a £60,000 "profit sharing" handout at a time when local schools are struggling to buy new books.

Burnley's Liberal Democrat leader Coun Gordon Birtwistle said he was staggered to learn the college had handed out Marks and Spencer gift vouchers worth up to £150-a-head to all lecturers and other staff and branded the move deplorable.

But college principal John Smith has defended the move and said he was pleased that staff had shared in the college's success.

In all 450 full and part time college employees were given gifts of not less than £25 after the major teaching centre raced to a healthy surplus for the first time in years. The handout was made at Christmas.

School governor Coun Birtwistle condemned the hand-outs: "When we have kids at local schools having to share books and starved of new technology equipment, giving education money as Christmas presents to well paid college staff is appalling.

"It is a deplorable situation when schools in Burnley are being starved of resources," he added.

But college principal John Smith said: "We are proud and pleased about it and it is entirely right that staff should share in the success they have brought to the college. We would do it again."

Mr Smith said the college had enjoyed a very effective year, reaching its income targets and keeping costs down, leaving a good surplus. He said the gifts amounted to between 10 to 15 per cent of the total surplus, the remainder of the money being ploughed back into better equipment and facilities for the college and students.

"The governors felt it was only right that we should show our appreciation for the efforts of the staff by giving them a Christmas gift.

"I think it is an excellent way to recognise their worth and show we value them."

Mr Smith said apart from national funding the college, which has a £9 million turnover, also generated its own income from the services it supplied to business, other education bodies and councils.

He said further education staff had borne the brunt of a 30 per cent efficiency improvement over the past five years, well ahead of British industry as a whole, working more for less.

He added the college would benefit from better staff morale, even more commitment and enthusiasm, leading to better quality of teaching.

But Coun Birtwistle said he was not convinced by the arguments and added: "All savings should be re-invested into the future of our children's education.

"It seems ludicrous that when schools have to go cap in hand to industry for handouts, the college is handing out public money as Christmas presents."

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