JOBS in the British carpet industry are under threat from illegal competition on the continent, it has been claimed.

The Kidderminster-based Carpet Foundation, which represents 14 leading manufacturers, has called on the Department of Trade and Industry to investigate illegal state aid in Belgium.

Foundation chief executive Mike Hardiman said the aid, in contravention of EC treaties, was helping undercut British products and putting jobs at risk.

About 5,000 people are employed in the industry in Wyre Forest.

Mr Hardiman said: "The British are the largest users of carpet in Europe and we are an obvious target for overseas competition.

"No-one minds that if it is fair and above board, but we are fed up with vast amounts of cheap imports being helped along by state aid. It is putting even more jobs at risk.

"In 1970 when imports to the UK were almost insignificant our manufacturing sector employed 45,000 people. Now with imports up to 64 per cent only 8,000 people are employed - and that figure is now being put under threat."

He added: "Imported carpet now accounts for 64 per cent of carpet fitted in the UK - and 55 per cent of imported carpet is from Belgium.

"In the past 20 years imports from Belgium have increased over 10 times."

Mr Hardiman has cited a case involving illegal state aid which has yet to be resolved.

He has called on the DTI to investigate the case which has dragged on for three years and seen the Belgian Government fail to supply information to the EC despite repeated requests.

In a letter to the DTI Mr Hardiman said: "The problem with this contravention of EC state aid rules is that the company has had the benefit for the past three years.

"This gives them a distinct competitive advantage over other manufacturers in the EC which inevitably damages other EC-based firms."