NORTHERN Ireland Secretary John Reid has warned voters in Burnley that electing a British National Party councillor tomorrow will hit business and investment in the town.

The Cabinet Minister took advantage of a lecture on Ulster affairs in Liverpool tonight to attack the right-wing party in the run up to elections in Lowerhouse and Trinity.

The government has been alarmed at the progress of the BNP in the town following riots there earlier this year and yesterday Burnley council's Liberal Democrat leader Roger Frost told his supporters to back Labour in the two polls to squeeze out the BNP.

Dr Reid will warn that voting in the BNP to the council will risk the sort of flight of investment and business from Burnley that damaged Northern Ireland during the terrorist troubles in the Province.

Dr Reid said: "We've seen for so long in Northern Ireland that if your community has a reputation for intolerance, violence and lawlessness then businesses and investors will be put off. I fear that will happen in Burnley if the BNP wins a council seat on Thursday. Businesses want stability -- both economic and political. They don't want neo-Nazis holding rallies in the town centre at the weekends. They don't want abuse flying around the Council chamber.

"Businesses simply will not invest money or locate a new factory in a place where the political climate is poisonous. They will not locate in an area where the politicians run the area down with their violent rhetoric or aim their spite at large sections of the community."

The Lib/Dem move has angered the independent group on Burnley council, which is also contesting the seat.

Group leader John Lloyd said he was astounded that the Lib/Dems had asked their supporters to vote Labourbecause it was better than voting for the British National party. They had made no mention of next week's by-election in Rosehill where they and Labour both had a candidate and where BNP were also standing.

"Are they asking the people of Rosehill to do the same?" he asked.

He appealed to voters in Trinity and Lowerhouse not to vote Labour and not to be frightened by the BNP.

Independent candidate in Lowerhouse Sam Holgate is fighting to regain the seat he quit following a dispute with the authorities over his council attendance allowances and benefits.

When that was sorted out he decided to stand again for the seat he had vacated. He has been unable to do any canvassing work as he is in hospital following an operation to replace a knee damaged in a footballing accident years ago.

Fellow Lowerhouse independent Coun Eddie Fisk said: "The BNP are a nonentity in these wards, the Liberals are just cuddling up to their friends in the Labour Party."

The Socialist Alliance also have candidates in both elections.

Local BNP co-ordinator Steve Smith commented: "If they had faith in their own policies they would not give tuppence about the BNP.

"The fact that the parties are striking an alliance shows we are moving towards a one party state."