Big brands slam into pinch point

Jun 15 2006 By Ross Smith, The Journal

Poor roads are preventing North-East firms making the step up to become major national brands, the boss of one of the region's biggest companies says.

Greggs Group managing director Sir Michael Darrington said it was "lunacy" that problems with transport were preventing firms expanding to create new jobs.

He said good infrastructure became a bigger concern for businesses the more successful they became, and called on the Government to act now to deal with pinch-points on the A1 and A19.

At the North-East Chamber of Commerce's annual meeting, he praised the Go For Jobs campaign, led by the NECC and The Journal, which is aimed at stopping poor road infrastructure damaging business in the region.

Article 14 notices, placed by the Highways Agency to halt developments if it fears roads cannot cope, are estimated to have cost the region £1bn in investment and 10,000 jobs.

But while 14 notices were issued in the eight months before the Go For Jobs campaign began, just three have been placed in the seven months since then.

Sir Michael said: "There are projects planned in this region that will help companies grow and will create jobs, but the Highways Agency is stopping them going ahead.

"That's job creation in the North-East being stopped by bureaucracy, which is absolute lunacy. They shouldn't say the roads cannot handle it, they should get on and sort it out."

Sir Michael has presided over unprecedented growth at Greggs, which has taken the baker from a company with 260 shops turning over £37m to a PLC with 1,319 outlets turning over £533m.

But he said: "Infrastructure is a major concern. It becomes more so the bigger your business is. You have got to be able to get your goods to market."

A Department for Transport spokesman said: "We would refute any suggestions that we're not committed to supporting and encouraging economic growth in the North-East. We are absolutely committed to that.

"On Article 14s, the Highways Agency is talking to developers. We want to see a quick resolution to these situations and we're working to ensure that they are resolved."

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Record numbers in work in region

The number of people in work in the North-East has reached an unprecedented high as official figures show employment in the region topping 1.15m for the first time since records began.

Business leaders across the region welcomed the North-East jobs boom.

According to the Office for National Statistics, the number of people in work in the region hit 1.156m in the three months to April - up 31,000 on the previous year and 5,000 in the past quarter.

It means 71.3% of the working-age population is now in work - just 3.4% less than the national average, a figure not seen since ONS records began in 1992. John Wright, national vice-chairman of the Federation of Small Businesses and North-East policy chief, said part of the success was down to smaller firms, almost two-thirds of which were planning to expand in the future.

He was joined by Isobel Robertson, acting chief executive of the North-East Chamber of Commerce, who said the "resilience" of the region was positive news.

Unemployment in the North-East stands at 78,000 or 6.3% - just 1% above the UK average.

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Go for jobs

The Go For Jobs campaign is backed by The Journal, the Evening Gazette on Teesside, and the North-East Chamber of Commerce.

We want the Highways Agency to lift Article 14 notices which block developments that, the Agency says, could put extra traffic on the A1 or A19.

We want them to cease using this tactic which business leaders estimate is putting 10,000 potential jobs and £1bn of investment at risk.

The campaign calls for sensible alternative measures to ease congestion on the roads, including effective public transport systems. We also want an end to delays for upgrades to the routes.

To find out more, go to www.goforjobs.co.uk