BURNLEY Council is to pay £5,000 compensation to a contractor after calling off a proposed housing repair scheme.

Work should have started on October 13, with residents contributing to the cost, but it was called off after all but three house owners dropped out.

Lib/Dem leader Coun Gordon Birtwistle told the housing committee: "It is an astronomical amount of money to pay for someone who has not done anything."

He asked for the payment to be deferred until councillors were told who the contractor was and whether he was carrying out other similar work in the area.

The committee was told that interest in a group repair programme for 6-22 Devonshire Road and 1 Elm Street was favourable at first. But interest began to tail off as participants were told of their likely contributions.

By the time the tender was let and the contract agreed, only four remained. Just before work was due to begin, another dropped out.

The decision was then made to remove the scheme from the group repair programme and to pay the contractor £5,000 compensation for costs incurred, which was custom and practice in the industry.

Coun Marcus Johnstone accused Coun Birtwistle of mischief-making and saying anything to get his name in the papers.

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