Concern grows for multi-million pound jobs fund
Nov 3 2009 by Adrian Pearson, The Journal
The North East has, more than most other UK regions, benefited from regeneration cash which helped build The Sage and the Baltic.
Funding is now spent on creating new businesses and jobs, but the region has to spend a set amount each year or lose that allocation.
The Conservatives have insisted there will be no damaging crossover period when they scrap the development agency and replace it with a series of local efficiency partnerships set to take over business functions.
Councils are expected to take over various planning and transport functions and a separate authority will shadow One North East for some time before taking over the business support role.
A spokesman said: “There will be no period in which nothing exits to fulfil this role.
“Smaller bodies built around city-regions are likely to replace One North East, each working with the agency before assuming control.”
A spokesman for the European Commission said how the UK decided to organise its regional structures was “nothing to do with us” and insisted the funding was guaranteed regardless of who spends it.
Tory plans
CONSERVATIVES looking to scrap development agency One North East are to set up local business groups as replacements.
Tories in Teesside have already started recruiting business leaders such as Sir John Hall on to working groups looking at a future without the regional quango.
Local Conservatives James Wharton and Ian Galletley believe reform of One North East is “essential”, with Tory party policy now focusing on handing more powers to councils.
The job creation and inward investment role currently carried out by One North East would be preserved and large sections of its funding transferred to Local Enterprise Partnerships.
Mr Wharton said “the needs of local business and nurturing an enterprise culture could be dealt with at a local level”.
A One North East spokesman said the agency had helped create jobs in places such as Teesside through its investment role.
"One North East has invested tens of millions of pounds into supporting the Tees Valley economy – both into directly helping businesses during the recession and laying the building blocks for the future through longer-term, larger schemes that will help lead the region's economic recovery.”
