A FRESH row over the loss of call centre jobs to India was raging last night after the Government said it was a myth that the sector was in decline in this country.

Trade and Industry Secretary Patricia Hewitt visited a call centre in Bristol and maintained that the industry was thriving, despite announcements this week from insurer Aviva and the Rail Inquiry Service which threaten job cuts across the UK.

Ms Hewitt announced a study into the global challenges facing the sector following union concerns that thousands of jobs were being lost as companies switched call centre work to cheaper countries.

She invited business and unions to contribute to a debate about offshoring and announced that she will chair a special seminar in the New Year.

Ms Hewitt sparked a fresh clash with unions when she said: "The fact is, our service sector is thriving. We lead the world in financial services, accountancy, consultancy and business services. The headlines announce thousands of jobs going to India and the Far East but the truth is that call centres in this country are still a thriving industry."

Union leaders warned that the competitiveness of the UK was being "crippled".