THE government has set tough new efficiency targets for Burnley council after massive losses were made last year by in-house contractors.

Council work on highways, street lighting, housing maintenance and catering lost the council £600,000. Now the government is tightening up.

The council has been told it must make a profit on catering and council house repairs, while highways work must be put out to tender in 1997, a year earlier than planned.

Environment minister Paul Beresford has warned the council that if financial targets are not met, private companies must be given a chance to compete for contracts.

Councillor Abdul Aziz, chairman of the contract services sub-committee, said: "The council expects to break even or achieve a small surplus on these services in 1995-6. I am not at all happy that the secretary of state is forcing the council to re-tender work much sooner than it needs to."

He said swift action was taken to deal with losses in highways and street lighting after an investigation last year.

"The council is looking forward to formal confirmation from the minister that the contract awarded by the council in March to Burnley maintenance services can continue for three years provided it runs at a profit.

"We will be keeping the operation of the various services under close scrutiny. We are not complacent about the losses and are very concerned to provide viable and efficient services to the local community."

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