A CARE home owner says there has only been a partial improvement in a financial crisis which forced him to threaten to close his premises.

Health and council chiefs agreed last week to enter into block booking contracts to guarantee paid beds at the Graceland nursing home, Guisborough, and other private homes in the area.

But Graceland proprietor Barry Parvin said at the weekend that his inability to pay his care staff little more than the minimum wage meant he is losing them to better paid jobs.

He wants to raise the issue of 'equal pay' with Redcar and Cleveland Borough Council.

Mr Parvin said: "At the moment we have reduced the number of beds from 53 to 40. If they put in writing the contract terms agreed at the meeting we would be happy to withdraw the notice of closure, but we will not be able to open any other wings because we cannot get the staff.

"Staff have left to join the primary care trust, the NHS and the council where care staff are getting paid 50 per cent more."

A spokesman said Langbaurgh Primary Care Trust urged Mr Parvin to withdraw his notice of closure, so that relatives and staff can be reassured of the home's future.

Redcar and Cleveland councillor Valerie Halton said it was agreed with Mr Parvin that the PCT and the council would give him written confirmation of the contract details and that if the letter backed up the details from the meeting he would withdraw the closure notice.

"In Mr Parvin's case, the deal, for which the council is paying the lion's share, guarantees more than £830,000 a year for providing the 40 beds - the council is responsible for 81 per cent."

Mr Parvin is to ask for a meeting with Middlesbrough South and East Cleveland Labour MP Ashok Kumar who has revealed plans to meet care home owners.