THE threat of spontaneous disorder remains in Burnley five years after the town was rocked by three days of rioting, a major new report concludes.

However, much of the 100-page survey paints a positive picture of the town and the good work that is being done to address some of the challenges facing Burnley five years after the worst riots in its history.

The report, Burnley 2006 The Real Story, also highlights concerns over segregation with just three mixed' wards in the borough, low wages, deprivation, poor educational attainment, and problems in the housing market.

Today report author Mike Waite said: "The reality is, and this is not a surprise, that we face very serious challenges in terms of community relations and there is a long way to go before Burnley is a town which feels at ease with itself and before relations between different sections of the community are good, but we are moving in a positive direction."

Among one of the most worrying figures to emerge is that more than half of the people in the town, 52 per cent, still don't feel Burnley is a place where people from different backgrounds can get along.

And the fear was echoed by Abdul Qureshi, chairman of Lancashire Council of Mosques, who said: "There are a lot of challenges still there and they will be there for the foreseeable future.

"It requires a considerable and consistent effort to make sure these challenges are met.

"Burnley has a very difficult problem regarding young people in the sense that there is a lack of opportunities for jobs and issues with gangs.

"That problem is there and if that is not addressed then it is quite possible that disturbances could happen."

However, the report also stresses that the town is making progress and highlights positive things which are being done to address issues of community cohesion, such as faith and youth groups working to bring communities together.

The report has been produced by Burnley Action Partnership (BAP) and charts the town's progress across health, education, community and safety and other key aspects of life in the borough.

It was being launched at a conference at Burnley Football Club's Turf Moor ground today with speakers including Lord Tony Clarke, who chaired the Task Force into the disturbances in 2001; Ros Lynch from the government's Neighbour-hood Renewal Unit; the Mayor of Burnley Coun Mohammad Najib; Daniel Gillen, Burnley's Youth MP; and representatives from the voluntary and faith sectors; business and agencies working in Burnley.

Burnley was rocked by three days of riots in June 2001 when more than 200 white and Asian youths rampaged through the town.

Shops and cars were destroyed during the violence and the Duke of York pub, Duke Bar, was gutted in an arson attack.

Mike Waite, Burnley council's head of community engagement and cohesion, says in the report: "There are a lot of issues to work through and without a doubt the borough faces serious challenges on race relations.

"The police, councils and many in the community are all too aware that the threat does remain in Burnley of spontaneous disorder, which may involve racial or criminal factors.

"At the same time, we are confident that there are good systems in place now to pick up on any trouble that does happen so that it is tackled quickly, firmly and effectively.

"There are wider issues too. Burnley overall is very segregated in terms of how rare it is for people from the Asian and white communities to be living next to each other as neighbours.

"Yes, there is a serious problem of racism in Burnley.

"But, as this report shows, may residents are actively involved in work to promote good relations, across communities and within communities."

The report also highlights a worrying' decline in the borough's population which has fallen from 89,500 people in 2001 to 88,100 this year. Burnley is the only district in Lancashire to experience a fall in population.

Mr Waite said: "There is a range of reasons behind these trends.

"There are not enough higher value' jobs in Burnley to keep or bring back people who can earn more elsewhere, and this goes along with housing challenges there is comparatively little aspirational' housing available in our borough the kind of housing people want to buy as they move up the property ladder."

But despite the bad news contained in the report, a lot of positive work is being done to try and address some of the issues faced by the town, especially by youth and community groups like Building Bridges faith group and the Breaking Barriers in Burnley youth group.

Mr Waite said: "Over the next five, 10, 15 years Burnley will continue changing and we are working for a place where communities and individuals with different backgrounds and traditions live in harmony together."