Blazing row over cash.

Fire chiefs have warned they will not set up a company to manage a new regional control centre until the Government answers major financial concerns.

A target date of August 1 has been set to establish the new company.

However, Tyne and Wear Fire Authority has been warned such a company could be rendered insolvent because of the pension liabilities of an expected 60 staff.

The company, which will have no assets when it is set up, may be unable to obtain credit as a result of the liabilities, which could run into millions of pounds.

The authority is also demanding assurances North East taxpayers will not be saddled with the cost of the national work of the control centre, including providing back-up for other regions if they are inundated with calls.

The building, on the Belmont Industrial Estate, Durham, is expected to open in 2008, as part of the first wave of centres which also includes the North West and East Midlands.

Tyne and Wear chief fire officer Richard Bull believes the Government is right to create the centre, which is staunchly opposed by the Fire Brigades Union.

However, he said: "The authorities in the North East are arguing August 1 is unrealistic. Our concern is the future financing has yet to be fully identified.

"There is no indication yet what those costs are going to be and how a project of this magnitude will impact on day-to-day operations."