Debate rages on over ways to boost the region's prosperity

Feb 10 2010 by William Green, The Journal

A debate is raging about the best way to boost the North East's prosperity. Political Editor WILLIAM GREEN looks at whether regeneration bosses have done enough to prove their worth.

REGIONAL development matters. It is all about your job, how much money is in your back pocket and whether our region is thriving.

But the political parties are split on what is the best way to promote the North East economy as the General Election approaches.

That means your vote will shape the future of your family and the region’s economy.

A big dividing line has formed over whether regional development agencies (RDAs) should be maintained or scrapped.

The current uncertainty has even sparked fears that companies are delaying investment.

Local agency One North East has hundreds of millions of pounds in public cash to carry out its function of boosting the regional economy.

Current big projects include making the region an international hub for the development of electric cars and green industries.

Supporters say One North East has played a critical role in ensuring the region works together to achieve more than it ever could split up into competing councils.

But opponents claim RDAs have achieved little since being created under Labour in 1999 other than to waste stacks of cash as unelected quangos.

Out of the three main parties only Labour have promised to keep the agencies.

Last week Conservative shadow business leader Ken Clarke told business leaders in Tynemouth his party was yet to be convinced that spending cash on a regional level was the best way forward.