POLITICIANS in Greater Manchester, angry about the announcement by the tobacco company Gallaher that it is to close its factory in Hyde and transfer cigarette production to Ballymena in County Antrim, creating around 300 jobs in Northern Ireland, have said that they believe that the decision was taken for political motives.

The leader of Hyde Council Mr Roy Oldham said "I am left wondering whether this is a crude bribe by the government to buy the Ulster Unionist votes which will enable them to hang on to power. This has come as a complete bombshell and we are appalled by the timing of the announcement just before Christmas."

Local MP Mr Tom Pendry said that he was suspicious that the news had been broken just after the House of Commons broke up for the Christmas recess, which meant that the decision could not come under the scrutiny of MPs. Union official Ms Brenda Warrington said that people in Hyde were totally stunned.

A spokesman for Gallaher dismissed claims that the company's decision had been influenced by the British government, anxious to appease the Ulster Unionists, as "total nonsense". Gallaher's general manager for corporate affairs Mr Ian Birks said that the move was based on purely commercial considerations.

"The bottom line is that we no longer need two factories. The one in Hyde is a converted mill the one in Ballymena is a purpose built factory."