AN EAST Lancashire MP has demanded a full inquiry into allegations about the way multi-million pound contracts with Lancashire County Council were won.

Ribble Valley Conservative Nigel Evans, made the call after a national newspaper article questioned the way that two £16 million contracts were awarded to Lancashire Enterprise plc - now called Enterprise plc - by the authority.

The article also claimed that an investigation had been undertaken into the relationship between former county council leader Louise Ellman and the firm.

But David Taylor, chief executive of Preston-based Enterprise plc, has attacked the allegations as 'misleading and inaccurate.'

"Contracts are negotiated with Lancashire County Council on an annual basis and in complete accordance with all the rules and regulations governing local authority contracting procedures," said Mr Taylor. "Had the journalist taken time to contact us, which he did not, we could have corrected a number of the mistaken assertions."

But Mr Evans said the accusations warranted a full inquiry. "These are appalling accusations which have to be cleared up as soon as possible," he said.

"The tendering system guarantees honesty and value for money. The time for a full independent inquiry to clear up any suspicion of stench is now."

Mr Evans has now written to Deputy Prime Minister John Prescott, urging him to initiate an inquiry into the claims.

Mrs Ellman, now MP for Liverpool Riverside, stressed in a statement that she had never had a financial interest in Lancashire Enterprises and that her interests had always been declared.

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