A HEALTHCARE firm is receiving a government grant of up to £2.4million to help move its factory from East Lancashire to County Durham, the Lancashire Evening Telegraph can reveal.

SSL International, which was today criticised by Home Secretary Jack Straw, is closing the former Cupal site in Blackburn next year with the loss of 113 jobs.

Instead it is moving production to Peterlee -- an area classed as an Enterprise Zone by the Government.

Under the Enterprise Zone scheme, grants are available to attract companies to areas hit by particular economic problems. Durham was granted the special status after the coalfields closed.

"Since then we have managed to attract 3,000 new jobs to the area and the SSL announcement, which will bring another 150, is very welcome," said Ken Frankish, director of economic development for Durham County Council.

He argued that the cash incentives available were not that significant to a company planning a long term future in an area.

SSL is receiving up to £2.4million towards the £12million cost of building a new factory. Blackburn with Darwen Council had put together a financial package to try and persuade SSL to stay in the town but could not compete with the level of aid Peterlee can offer.

Councils face restrictions on financial incentives unless they are in areas with special designation.

Blackburn council officers believe SSL's decision was largely based on the grant available in Peterlee.

Jack Straw said he was planning to meet company representatives and workers in Blackburn today.

He said: "I am very disappointed as I learned about Cupal's move from the Evening Telegraph and not from the company. It's not only an insult to the town and the work force but is discourteous.

"Blackburn has kept its assisted area status but its prosperity depends on the rest of East Lancashire. The latest spate of job losses is very worrying and I shall be speaking to my fellow East Lancashire MPs.

"When I have held my discussions and I and my fellow MPs have decided what to do, I shall of course be discussing what help can be given to the area with my cabinet colleagues.

"In particular I shall be talking to Trade and Industry Secretary Stephen Byers, Deputy Prime Minister and Secretary of State for Environment, Transport and the Regions John Prescott and Chancellor Gordon Brown."