A MAIDSTONE councillor has defended the town's financial backing for Maidstone Chamber of Commerce, which is subject to an investigation into alleged thefts of £20,000.

Cllr Dan Daley, portfolio holder for economic regeneration and tourism, said the chamber was a "a valuable partner in helping to listen to business voices in the community and vital to helping to promote the borough as an excellent place to do business".

In the past two years, the council has injected more than £40,000 into the chamber, the associated Maidstone Enterprise Agency, and special chamber-managed projects such as Maidstone Enterprise Week and Schools Careers Fair at Mote Park.

The council has a "service level agreement" with the chamber worth £12,560 in the year to March 2002, and £12,810 this year.

It has also given £10,000 to the enterprise agency in the past two years to help

start-up businesses.

At the full council meeting on Wednesday, Cllr Fred Winckless asked Cllr Dan Daley to remind the council of the purpose of the "£45,000 grant" to the chamber of commerce and whether it had been achieved.

Cllr Daley said: "The money is monitored by a quarterly report and meetings on a very stiff basis. Payments are then made by the council to the chamber providing we're satisfied that the necessary progress has been made."

The chamber had been given £21,310 in the last year which was broken down into £12,810 of core sponsorship, £5,000 to the enterprise agency for business start-up grants, £1,500 for enterprise week and £2,000 for a working fund

Cllr Daley said the last two figures depended on the chamber matching funding from elsewhere.

Cllr Winckless asked: "What support will chamber get if it if finds itself in difficulty?"

Cllr Daley replied: "The council would have to treat the chamber like any other business. If the chamber were not able to continue its business in a proper way the council would have to consider its position."