RISING energy costs could mean the end of British manufacturing within 10 years, according to a Bolton employer.

Ron Simpson, managing director of Mondi Paper UK at the Creams Paper Mill in Little Lever, has spent the last year winding the mill.

Production stopped in December 2004, with the loss of 97 jobs, due to escalating energy bills.

Mr Simpson said: "The issue of rising energy bills cost Bolton nearly 100 jobs here last year, and it is not getting any better.

"The work from here transferred to our mill in Bury, but the same issues have arisen there this year.

"This mill is being transferred in wagons to Russia, where it will be rebuilt. We are fighting a losing battle, and manufacturing is being left to die out by the Government.

"Apart from specialist, technology-based manufacturing, I don't think there will be anything left in Britain within 10 years."

The recent cold snap has driven the wholesale price of gas up to its highest level since March.

As well as the weather, problems at some North Sea gas rigs and a lack of supplies from the continent have led to a rise of more than 50 per cent in the last week, to £1.40 a therm.

Fears have been growing among business leaders over future power supplies and rising gas costs.

Peter Weidenbaum, executive chairman of Radcliffe-based manufacturer Trumeter said: "Energy bills are a cost that cannot be recovered from your customers.

"This has been handled badly by the government. It knew this would happen, but it has sat back and done nothing and business is again paying the price."

Paul Foster, Greater Manchester Chamber's local policy manager for Bolton, said: "Rising energy prices are bound to be a concern for businesses as any rise in costs eats in to profits.

"The UK now imports more gas than it exports.

"We cannot just rely on other countries for our energy supply, so it is vital that the we explore every option, from nuclear power stations to wind farms."