FORTY jobs are to be axed at Airedale Hospital, Steeton, in a bid to reduce its £5 million debt.

The plans were revealed at an Airedale NHS Trust board meeting.

The trust is £5.4 million in the red - £3.3 million of which is an overspend from last year and £2.1 million a recurrent deficit carried over from previous years.

Acting chief executive Janet Crouch revealed the intention for the staff cuts in a financial recovery plan for 2005/06, which identified savings of nearly £3 million.

It was estimated that by axing 40 jobs the trust would save £1 million.

Mrs Crouch said: "We have got to get our finances back into balance. Increasing our income is a bonus.

"We have to do things that are within our control - that's making savings and the only way we can make those sorts of savings is by looking at the establishment."

No details of which jobs were to go were announced, but it is believed that the 40 would include existing vacancies.

But Unison representative Linda Dalton was not convinced the move was viable.

She said: "I don't see that by cutting staff by 40 posts is going to make a great deal of difference. Staffing levels are getting critical. We're cut back to the bone as it is and have to bring in bank staff."

Doug Farrow, director of planning and performance, disagreed.

He said: "Staff numbers have actually grown. I know our staff are working very hard, but what we have to do, in as sensitive a way as possible, is get our costs and income back into balance.

"And we can only do that by looking at reducing our costs. Seventy per cent of our costs are in staffing. It's a hard reality of life."

Mrs Dalton added: "The work coming through the hospital is increasing. It's more than we've ever had. Our staff are all out there doing their best for the trust and they will read about these cuts and think 'here we go again' and they will end up leaving."

Other savings and additional income identified in the plan included a capacity reduction.

Mrs Crouch said an integrated care project between Airedale Primary Care Trust (PCT) and Bradford North PCT would modernise services, making them more efficient and necessitate a reduction in bed capacity and support services based at the hospital.

Savings could also be made thanks to advances in biopsy treatment in breast cancer, which would mean less surgery and a shorter stay in hospital. And investing in the appointment of more consultants would extend services and therefore increase income.

About £300,000 from the trust's contingency reserve will also be used in the financial recovery.

Mrs Crouch said: "It's uncomfortable, but I think we have to do it."

The board agreed to approve the plan and implement it as soon as possible. Mrs Crouch said: "We are reviewing how we work and are developing a robust plan to bring the trust into financial balance as soon as possible."