SOUTH and East Cheshire TEC has its headquarters in Middlewich but also operates out of Crewe, Congleton and Macclesfield.

Chief Executive Liz Davis has stated that it is too early to say where the cuts in jobs and premises will be made.

"We will have to make changes following the Government review but we are not in financial difficulty. Our reserves are around £5.5million and we are re-investing £1.15million to maintain services. There is no cause for concern," she said.

On Tuesday employees reported that their monthly salaries, usually paid into bank accounts by then, had not arrived.

"They need have no worries. They will get paid because we are still in a sound financial position," the Chief Executive added.

The cut-backs were a direct result of the 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 had relatively low unemployment (ranging from 2.1per cent to 4.1per cent compared with 5.1per cent for the rest of the North West). Around 70 per cent of 16-year-olds locally remained in education beyond the age of 16 and 95 per cent stayed 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 £2million 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 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. 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," Ms Davis added.

Crewe and Nantwich MP Mrs Gwyneth Dunwoody said that there had been "considerable reservations" about the work and efficiency of TECs, set up under the Conservative government.

"They have had a great deal of money thrown at them and the new Government will now be looking for value for money," she added.

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