Doubts have been raised about the future of an organisation charged with selling Cumbria to inward investors and attracting jobs to the county.

Cumbria Inward Invest-ment Agency (CIAA) has confirmed that talks are taking place with its public and private sector backers about the way forward.

It follows Cumbria County Council's plans to strengthen its work in the economic development field by creating an economic and regeneration service within the authority.

As one of the founders and the largest single funder of the CIIA the county council contributes £275,000 a year the authority wants to bring the agency under its wing.

The council's cabinet last week agreed to open talks with the CIAA board on the possibility of integrating its work and staff into the authority.

CIIA managing director Jack Stopforth said the Penrith-based agency was not facing financial difficulties at present and could call on "perfectly adequate reserves."

However, Mr Stopforth admitted that future funding of the Penrith-based agency beyond 2005-06 was "likely to be affected by external considerations."

In addition to the county council's proposed revamp, these also include: l North West Development Agency's plans for regener-ation agency Cumbria Vision.

l The longer-term plans of private sector funders, such as United Utilities, Capita and BNFL.

In addition, it is understood that three district councils including South Lakeland and Barrow will either stop funding CIIA or cut back their financial support in future years.

Mr Stopforth, who was recently appointed chairman of Learning and Skills Council Cumbria, said in view of the uncertainty, he had felt it prudent to open talks to "secure the agency's activities" into the future.

"Such discussions are best conducted confidentially but I can confirm that they are under way and will be concluded before the end of the calendar year," he said.

"Whatever the ownership or management arrangements, the company's acknowledged expertise in identifying and securing investment for Cumbria will be sustained and my excellent staff have been assured as to their own futures."

Once talks had been completed and staff had been fully briefed on the outcome, the future of the agency would be announced, he added.