A BUSINESS leader is warning of a "ripple effect" caused by recent Black and Decker redundancies after another firm laid off more staff.

Peter Troy, chairman of the Darlington branch of the Federation of Small Businesses, spoke after Altec Engineering, based at Bowburn, near Durham, made four out of its 20 shop floor staff redundant.

The departure of another member of staff at the tool manufacturing firm, which employs about 30 people, was put down to natural wastage.

While the company stressed that a number of factors had led to the redundancies, it admitted that the recent job losses at Black and Decker, which it supplies, had played a part.

Mr Troy said that he feared that unless Government help was forthcoming, others would follow. This is an example of what can happen when a large organisation closes down. The ripple effect is felt by the smaller business community," he said.

"Clearly, the Government agencies should be making available meaningful help to the small business community, who create sustainable jobs in the region."

Mike Crabtree, managing director of Altec Engineering, said there had been a general downturn in trade recently.

"A number of companies are announcing that they are moving production facilities and our manufacturing base is reducing," he said.

"The only reason why our company exists is for the needs of people like Black and Decker.

"My job is to replace this business we are losing and it isn't easy, but I think we are one of the strongest of our type of company in our area."