A GOVERNMENT minister said he was not "Mystic Meg" when asked about the scale of job losses facing East Lancashire.

Employment minister Tony McNulty would not say whether he thought business bosses’ predictions that 5,000 jobs could go across the area by the end of the year were accurate.

But he insisted drastic Government moves to protect the economy would have a positive effect locally.

As revealed by the Lancashire Telegraph today, Mike Damms, chief executive of the East Lancashire Chamber of Commerce, believes redundancies in East Lancashire could hit 5,000 by the end of this year as the recession bites.

Mr McNulty, the minister of state for employment and welfare reform, during a visit to Blackburn today said: “The key word here is ‘could’.

“I am not Mystic Meg, and it’s not my job to predict what the unemployment rates will be.

"My job is to make sure the job centres have all the resources they need.“ Referring to today’s announcement of a new Treasury bail-out for banks, he said: “The success or otherwise of everything we do will make a difference.

“We are doing all we can and we think with an active and interventionist Government, this area is well-placed.”

Mr Damms had said the makeup of East Lancashire’s economy, with a large proportion of public sector and manufacturing jobs, meant it was better placed than other areas to weather the current financial problems.

Mr McNulty was visiting the county promoting Local Employment Partnerships, a scheme to encourage companies to take on people who have been out of work, at Blackburn job centre.

He said: “I would accept there’s a core niche manufacturing base around this part of Lancashire that so far has been quite well protected.

“But from all the indications we have so far it’s fairly evenly-spread.”

In a swipe at the Conservatives, he added: “The message to the people of East Lancashire is that we won’t stand by as has happened in past administrations.”

But Tory Blackburn with Darwen councillor Alan Cottam, who accompanied the minister on a tour around Blackburn yesterday, said: “If they keep following the Conservative Party’s policies I’m sure they will get through”.