A STAGECOACH boss today proclaimed 'a new era' of buses in the area as the company took over Burnley and Pendle Transport.

Michael Chambers, managing director of Stagecoach subsidiary Ribble Motors, welcomed the take-over as Burnley Council signed on the dotted line to sell its 50 per cent stake in the firm for £2.85 million. Mr Chambers, who led often difficult negotiations with Burnley on the future of the local bus service after Pendle council sold its holding last year, said Stagecoach saw a bright future ahead for the company.

He said: "It is only day one and we need a little time to take over before we make further announcements.

"But we have said there will be considerable investment in new buses and we are looking for a very successful future for the firm."

He added: "They have been very long negotiations and we are pleased the long saga has come to an end.

"We are very pleased with the outcome." But with redundancies in the offing, Burnley and Pendle workers have always opposed the sell-off.

Announcing the sale today, Burnley Council said it had reached agreement restricting the ability of Stagecoach to reduce bus services within the next two years.

The agreement also contained clauses protecting the rights of employees, particularly in relation to pensions, say council chiefs.

They add that the strenuous efforts to solve the pension problems were the main reason for the sell-off taking months to complete.

Council leader Kath Reade blamed Government de-regulation and Pendle's pull-out for the sale being forced on Burnley.

The council says cash from the sale will result in annual £156,000 savings to the council, investment of £2.2 million in new schemes and an extra £220,000 cash receipt for a new housing initiative.

Council finance chairman Peter Kenyon, said: "We have achieved the best deal for the people of Burnley."

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