A MASSIVE six figure loss has been forecast by Chorley Borough Council's grounds maintenance division.

Bosses are blaming the disastrous 1998-99 performance on sickness, bad weather, a poor business plan and reduced productivity.

Councillors were told this week that the deficit for the year is likely to be anything from £100,000-£140,000!

The division, which won a series of contracts after tendering for the work, reported losses of between just £3,000-£4,000 the previous year.

Frank Whitehead, the council's operational services director, said the circumstances were "exceptional" but admitted the deficit was "horrendous" adding: "It is a worrying loss and a concern. We have got to live through it and come out the other end."

Council chiefs now have some explaining to do to the Department of Environment, Transport and the Regions (DETR) who will want to know what went wrong and how it can be put right.

The council's operational services sub-committee was last night (Wed) presented with a report on the performance.

The grounds maintenance division, which employees 43 people, has 20 vehicles and plant, recorded a turnover of £1.4m.

But business was hit by exceptional sickness - five employees were long-term sick. Staff could not cope and extra wages had to be paid to temporary workers, costing the department up to £50,000.

Weather and ground conditions meant expenditure exceeded income, the committee heard. Business was won on small margin contracts in the face of fierce competition.

The division failed to handle some larger schemes and staff morale slumped after losing out on incentive payments.

The committee was told the division could produce the goods, but that more vigilance over the problem areas was needed.

Mr Whitehead said the current council restructuring would help and that serious consideration was required by the new administration regarding future tendering strategies.

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.