TREASURY Minister Helen Liddell has been told that a strong pound threatens North West manufacturing.

Gordon Prentice MP said the rising value of sterling could be particularly damaging to his Pendle constituency, which has one of the highest proportions of manufacturing in the country.

Last year the pound increased in value against the German mark by 21 per cent, against the Japanese yen by 16 pc, against the US dollar by five pc and against European ecu unit of currency by 16 pc.

Pendle comes 12th in the league of UK constituencies with the 44.3 per cent of its workforce in manufacturing.

Mr Prentice told Mrs Liddell that the appreciation of the pound sterling was hitting local firms and the exports that came from them.

The minister said she understood the concerns of manufacturing industry but a stable economic framework on the international front was the best guarantee of prosperity.

A concerned Mr Prentice said later: "Manufacturing depends on exports.

"Profits are being cut to keep market share but this can't go on for ever."

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