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MP Ken Clarke issues warning to One North East

A resolute Mr Clarke looked unimpressed when chairman of the Washington-based Canford Group Hugh Morgan Williams added the region has shown “it is at its best when it works together”.

Mr Clarke did not back down from his stance that the starting point should not be to preserve development agencies.

He said: “The key thing is that you have to address if business want them... I’m quite convinced that the best way forward is through local partnerships that are business led.”

Mr Clarke added that he was convinced there were many who did not want a development agency, dismissing them frequently as “what’s left of John Prescott’s regional government”.

He said: “We have all these regional bodies and they have continued to grow. Whenever I came to the North East in the past I always noted that people were eager to explain that Teesside is not Wearside is not Tyneside.”

He added: “Many agencies have to justify their existence. Many quangos are created with chairmen who do a good job but within six months have gone native.

“Some do a very good job but then try and find something else to do ... and that raises a question of public expenditure.”

He later said his experience was that there would be “healthy competition” if cities competed against one another.

Margaret Fay, chairwoman of the One North East, met Mr Clarke’s criticisms head-on when she closed the meeting.

Ms Fay said: “The economy of the North East has experienced difficulties over the last year or so.

“However, I truly belive we face that with well placed confidence. In my six years as chairwoman I have realised we are at our best and have the greatest potential for success when we all work together.

“These partnerships are central to what makes the region different.

“In the past we have joined together too much to bemoan our fate, moaning minnies some dismissed us as, but those days are gone.”

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