Founded more than 15 years ago, Made in Cumbria supports small craft and food businesses across the county and today has 520 members.

While the organisation is run by Cumbria County Council, much of its funding comes in the form of grants from the North West Development Agency, the government and the EU.

The Kendal-based organisation is the envy of small businesses in many other parts of the country and has been hailed as a model business support.

MEMBERS of Made in Cumbria want the organisation to remain as part of the county council rather than be hived off to another agency.

The message came across loud and clear at a public meeting called by the authority to give members a chance to air their views on Made in Cumbria's future.

More than 80 people packed into County Hall, Kendal, for the first of two public meetings and every speaker urged the council to retain Made in Cumbria.

The council launched the consultation exercise after putting on hold controversial plans to transfer the organisation promoting craft, giftware and food businesses to Cumbria Rural Enterprise Agency, following an outcry from members and staff.

Members voiced fears that Made in Cumbria would become less responsive to their needs and more bureaucratic if it switched to another body.

"I have found a huge difference between Made in Cumbria and any other state body when I've approached them for assistance. Everybody else has wanted to send an accountant round to look at cashflows and profit forecasts but offered no assistance. Made in Cumbria always seem to be a lot more entrepreneurial and small business-minded," said one member.

Others praised Made in Cumbria for enabling them to sell to the public and trade at shows and exhibitions across the country, and for being readily on hand to offer help and advice.

The county council was criticised for its handling of the whole issue, with some members questioning the authority's motives for the proposed transfer.

Ralph Howard, CCC's community, economy and environment director, said Made in Cumbria was probably the council's most successful economic development initiative of the past 20 years.

But internal auditors had raised concerns last spring about the relationship between Made in Cumbria and its trading arm, which operated as a company limited by guarantee.

The trading company was originally formed to give Made in Cumbria greater flexibility for example, the ability to run shops selling members' products - and now has a £1 million annual turnover.

However, Mr Howard said the trading company had not been "formally" sanctioned by the county council, and auditors were concerned that not all the necessary checks and balances for dealing with public money were in place. There was also concern that if the trading company ever faced financial problems, it could have a knock-on effect on the county council.

Mr Howard warned that if Made in Cumbria stayed under the county council's umbrella, it would have to operate under new constraints that might limit its operation. "It will inevitably mean more bureaucracy because we will have to do things that satisfy the auditors," he added.

But members made it clear they preferred this option.

Westmorland County Agricultural Society chief executive Rodger Read, who is chairman of the trading company, said Made in Cumbria Ltd was a separate body set up as a vehicle to secure grant aid. He urged Made in Cumbria to consider moving its headquarters to the proposed Gateway project being planned off Junction 36 of the M6, where it could sell members' products and create a training centre.