PREDICTED heavy financial losses for the next 12 months led to Burnley Council's U-turn over the sale of their share in Burnley and Pendle Transport, it has been revealed.

Directors of Burnley and Pendle Transport, three from Burnley and three from private operators Stagecoach, were told last week that estimates for the year ending September 30, 1997, were predicting a serious financial loss.

The company has been operating profitably for a number of years.

The Stagecoach directors put forward a package of proposals to remove the deficit, including the investment of several millions of pounds over two years on new buses.

Burnley Council were unable to match that investment. Despite appeals from bus workers to hang on, Burnley Council agreed last night, reportedly by 35 votes to nil, to sell the town's 50 percent share.

Burnley's Chief Executive Roger Ellis, said Burnley could only have found that sort of investment in one of two ways.

One would have been to use funds earmarked for the rebuilding of the market multi-storey car park (which would then have to close because of its poor structural condition) with serious consequences for town centre traders.

the other way would have been to make large cuts in basic council services, inevitably involving substantial job losses.

Mr Ellis said the council had therefore, very reluctantly, decided to sell its share to Stagecoach for £2.85 million.

because of Government spending limits, not all the £2.85 million will be available for new schemes in Burnley, but the council will be able to invest the money and profit from the annual income.

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