BOSSES of Blackburn's Racial Equality Council have been told they face losing their town centre offices and council funding unless they get their house in order.

The warning came as it was revealed three Blackburn with Darwen Council representatives have resigned from the organisation's executive committee.

Coun Sue Reid, executive member for social services, Conservative leader Coun Colin Rigby and backbench Labour councillor Dorothy Walsh have all handed their notice.

They said their decision came "because the regular disagreement between factions on the executive committee" had prevented it operating effectively to promote racial harmony.

The council has ordered the REC to start representing a larger cross-section of the community and concentrate on meeting the needs of ethnic minority communities.

The REC's chairman Dr Salim Najia and his number two Jaraid Qureshi resigned last week for "personal reasons". And last month an officer was sacked and another reprimanded after a fight broke out in the REC offices in St John's Place.

The council part funds the REC and provides office accommodation.

It has now warned that the REC faces losing support unless it begins to meet the standards expected.

Coun Maureen Bateson, executive member for citizens and consumer rights, said "This type of funding only continues if the organisation concerned is meeting its obligations under the agreement.

"At present the community is not receiving the quality of service it has the right to expect from the REC."

The council has already expressed its concerns to the REC through a letter from Coun Bateson.

The letter set a deadline of the end of October 2002 for the REC to make significant changes if it is to continue funding it.

In the six months April to September 2002, the REC received a financial grant of £11,025 from the Council.

The council also provides accommodation at the St John's Centre, and provides a policy officer seconded from its policy department.

The council is liaising closely with the other main funder of the organisation, the national Commission for Racial Equality, to encourage significant change at the REC by the end of October.

The REC executive has elected Jamal Patel as its new chairman and Gulzamir Ahmed as his deputy.

Acting REC director Tom Moorhouse said: "We are extremely sorry to lose the councillors, as we always valued their contribution to the organisation.

"The REC is a public service, publicly funded, and we have gone through a bad patch in the past few months.

"However, we are trying to resolve this so that we can provide a good service to the local community."