A WAR of words has broken out over the size of pay packets across east Cleveland.

According to Ian Swales, Liberal Democrat Parliamentary candidate for Redcar, there has been a huge fall in average annual earnings in the Redcar and Cleveland area, with earnings nearly ten per cent down on 2005.

But Redcar's Labour MP Vera Baird said Redcar and Cleveland is the only area in the North-East where average weekly earnings are higher than the national average.

The MP broke off from monitoring elections in Sierra Leone to claim: "The facts show that Redcar is prospering, with high wages and growing employment.

"The Government has earmarked the region for jobs, but also helped lure firms into the area with industrial grants, alongside providing a stable economic environment for investment.

"Reports that the area is in economic decline are misleading."

The politician admits a "blip'' in 2005, but insisted yesterday: "Employment rates show the area converging with national trends of rising employment.''

Councillor George Dunning, leader of Redcar and Cleveland Borough Council, said: "Our MPs have been working tremendously to maintain jobs in the steel and chemical industry."

Mr Swales said good quality jobs are not being replaced and people are forced into low-paid work or Government schemes.