THE creation of 420 new jobs at the Shuttleworth Mead Business Park was today hailed as a major breakthrough for East Lancashire in its bid to build a new generation of quality service-based companies. Business editor ANDREW CALVERT reports. . .

BY SEPTEMBER next year, HML - an offshoot of the Skipton Building Society - plans to have 600 people working from its Padiham site which will be the biggest part of its multi-billion-pound operations.

The news - revealed in the Evening Telegraph yesterday - has been described as vital to the future of the local economy, by one of the area's top business leaders.

And Mike Damms, chief executive of the East Lancashire Chamber of Commerce, said the £3.5million investment in a new office complex by mortgage administration specialists Homeloan Management was a major boost for the local economy.

"I am thrilled to see more white collar jobs coming to East Lancashire," he said. "We are known throughout the world as a centre of excellence for manufacturing, but it is critical to attract new, high-quality jobs in the service sector to give us a more balanced economy."

The huge influx of new jobs at Padiham will certainly be a major boost to the Burnley area. According to the latest data from Lancashire County Council, just 3,400 people in Burnley work in finance and other business services. Throughout East Lancashire, only 10 per cent of people work in those sectors compared to a national average of almost 18 per cent.

HML's expansion follows the growth of Capita, brought in to run services for Blackburn with Darwen Borough Council, and now employing more than 1,000 white collar workers on government contracts throughout the UK. Hundreds more jobs have been created by the Pensions Agency at Simonstone and the arrival of financial services companies like Berkeley Morgan.

"Organisations like these are so important for East Lancashire," said Mr Damms. "They are the building blocks for the future - they could have chosen anywhere to expand, but decided to come here.

"The creation of 420 new jobs is highly significant in its own right, but, more importantly, it sends out the right message that East Lancashire is a place that can provide the right staff and facilities for these companies.

"East Lancashire has a tradition for manufacturing, so it is critical that we can prove that we are capable of much more. We need real companies like HML which have invested their own money to underpin the message that we can deliver.

"A mixture of inexpensive accomodation, an adaptable workforce and great transport links are all putting East Lancashire on the inward investment map."

HML is creating a second centre at the business park to cope with growing work demands from building societies and other financial institutions.

The company already employs around 180 people at Shuttleworth Mead and, according to HML director Vince Smith, it has been an ideal choice of location.

"This is an excellent place to do business," he said. "It is convenient for our head office in Skipton and provides a good labour market for us to find the right people to come and work with us."

HML draws its Padiham workforce from throughout East Lancashire and a recruitment drive has now started. By the time new staff are on board later next year, HML's two offices in Padiham will employ 600 people.

HML handles mortgage accounts for more than 30 blue chip clients such as Norwich Union and, with more than £27billion of assets under management, it is the undisputed market leader in its sector.

The new jobs on offer will range from basic administration to high-powered IT jobs. With full Investor in People accreditation, the company provides extensive training and offers flexible working patterns to meet the needs of their staff.

And a company spokesman said: "We are in Padiham for the long term and I am sure we will have a big impact on the local economy."