THE future of East Lancashire's textile industry could lie in 'smart fabrics', according to a government aid plan.

Moves to develop materials that could include embedded computer chips which set their own washing machine programme have been suggested as part of a £10million plan to boost the struggling sector.

The Government funding was announced in response to a report by the Textile and Clothing Strategy which called for aid to help the industry, which still employs more than 4,000 locally, compete in the world market.

David Duckworth of the Lancashire Textile Manufacturers' Association today welcomed the news.

"Any interest or assistance that the Government can offer firms in the sector to become more competitive has to be good news," he commented.

Peter Hargreaves, managing director of Oswaldtwistle-based Hilden Manufacturing -- one of East Lancashire's largest textile manufacturers with five mills in the area -- agreed that help for the industry was welcome but stressed it was up to individual businesses to be competitive.

"We have never relied on the Government for help and we have had to make our own way," he said.

"Some textile firms have gone to the wall waiting for Government help. We have had to find new markets, develop new products in niche markets and invest heavily in the latest equipment."

Mr Hargreaves welcomed the report's suggestion of forging stronger links between the textile sector and colleges and universities to design new products. "That is an area we would be interested in developing." The report by the Textile and Clothing Strategy Group calls for better co-operation between manufacturers and retailers, more efficient supply chains, more effective use of UK design and marketing talent, better exploitation of the technical expertise and resources available in universities and colleges and the effective promotion of the British Textile Industry's reputation for quality and excellence.

It recommends closer co-operation between universities and the industry, and suggests that the University of Manchester Institute of Science and Technology could become a new Centre of Manufacturing Excellence in Textiles.

The Government has promised to support schemes to improve the technical skills of firms and their employees, boost exports, and ensure the right financial and other support is available to the industry.

There will be new rapid response units to tackle job losses in the industry, and to re-train redundant workers for others jobs in textiles or elsewhere.