REBEL councillor Eddie Fisk has withdrawn from the shadow board of the company earmarked to take control of the town's council houses -- and headed off a major Labour Party row.

The Millennium mayor, who quit Labour after being suspended by the party and banned from membership of the council housing committee after an investigation into housing allocations, was handed the job on the new company at a meeting of Burnley council.

But the move sparked fury among some Labour councillors and former group leader Kath Reade wrote to new leader Stuart Caddy demanding an urgent debate at Monday's meeting of the ruling council Labour group, with a view to Coun Fisk being kicked off the shadow board.

Now Coun Fisk, who is set to become Mayor of Burnley in May, has stepped down from the new housing company stating that he could not adequately carry out the twin duties of board membership and his civic engagements.

Coun Caddy today welcomed his decision, stating: "I would like to thank Coun Fisk for taking into account the general interests of the public."

And Independent group leader Harry Brooks, who nominated Coun Fisk as a shadow director echoed the view adding: "It is a pity this clash has arisen, but it is right that Eddie should put the mayoralty first." It is understood regional Labour party chiefs had expressed serious concern. over Coun Fisk's inclusion on the shadow board.

Coun Fisk, a Labour councillor for 20 years, quit the party and won re-election as an Independent this year after being suspended by Labour and banned from the housing committee after an independent panel ruled he was guilty of telling council officers to disregard official allocations policy when he thought unsuitable people would be given a council house. When it is set up the company will take over total control of the 5,600 property housing stock and deal with allocations policy.

In her letter to Coun Caddy, Mrs Reade called for a debate to allow members to confirm or withdraw their approval of Coun Fisk's nomination.

She said approval was in conflict with the current position of both the group and the full council and could "give rise to difficulties."

She criticised the present leadership for failing to give background and guidance to councillors before the council decision was made.

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