MIDDLEWICH-based South and East Cheshire Training and Enterprise Council claims it is still in a sound financial position despite expenditure cuts of around £2.5m to be made over the next 18 months, as revealed in last week's Winsford and Middlewich Guardian.

The institution created for and dedicated to helping businesses reduce unemployment has announced that it has reserves of around £5.5m and it is re-investing £1.5m to maintain services.

But chief executive Liz Davis has admitted that cuts in jobs and premises will be made - although it is too early to say where.

She said: "We will have to make changes following the Government review but we are not in financial difficulty. There is no cause for concern."

The cut-backs in vital training for the unemployed and businesses in the area were a direct result of a Government review, she explained.

All TECs were being asked to redirect funds and resources and concentrate more on disadvantaged areas and groups.

South and East Cheshire has relatively low unemployment (ranging from 2.1 per cent to 4.1 per cent compared with 5.1 per cent for the rest of the north west).

Around 70 per cent of 16 year olds locally remain in education beyond the age of 16 and 95 per cent stay in some form of education or training.

"For these reasons the TEC's contract with the Government Office for the North West reduced by almost £2 million in 1997/98. Like any other business the TEC must respond to changes in its environment," said Ms Davis.

She added that the changes might ultimately impact on services to business provided through the Business Link partnership and some of the economic development, education and unemployment initiatives currently supported by the TEC.

The Government's New Deal initiative, in which the TEC is a partner, would continue to provide services to reduce long-term unemployment and the highly successful Modern Apprenticeship programme would be maintained.

"In the eight years since its launch, South and East Cheshire TEC has gained a reputation locally and nationally of innovation, quality and success," Ms Davis said.

"This review of the business will enable the TEC to go forward, in partnership with others, to help the business and people of South and East Cheshire to compete with the best in the world."

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