Tory Ken Clarke attacks One North East staff costs
Mar 5 2010 by Adrian Pearson, The Journal
THE Conservative party row over the future of One North East has deepened after a leading Tory attacked its multi-million pound staffing bill.
David Cameron appeared to offer hope that he will save the regeneration body from the chop when he told his partys Spring conference that most and not all development agencies would be scrapped.
But shadow business secretary Ken Clarke, who will likely make the key decision if the Tories form the next Government, has hit out at overstaffed quangos such as One North East.
He has warned quango bosses their £14m wage bill which rises to £20m with pensions and other costs for around 391 staff is now a clear target when public sector spending cuts are introduced.
Mr Clarke has said there is no uncertainty in Tory policy, and many in the North East now accept that the spending body will be changed.
As debate centres on what, if any, regional structure, is left after the coming general election Mr Clarke has made it clear staff costs will have to come down.
He said: As they stand [now] they will go. If in the unlikely event that some localities want something on that regional scale they can have it because we are going to allow local leadership to say what structure theyd like.
But I do think in these difficult times that those RDA tower blocks with their large staff are going to have to go; its not the best way of delivering either business support or urban regeneration.
Mr Clarke has previously told The Journal he remains to be convinced average voters care about the fate of the quango. Repeating these views, Mr Clarke said: Some people think the North East is all alike but if you go there you will find the difference between Tyneside, Teesside and Wearside is quite marked.
The Torys preferred option is to see One North East and the other seven RDAs replaced by sub-regional groupings of councils, called local enterprise partnerships.
The staffing warning comes just days after Tory leader David Cameron appeared to accept there need for some form of regional control of the economy. Delegates at the spring conference cheered Mr Camerons pledge to sweep away much of regional government as part of a plan to overhaul bloated bureaucracy from Westminster downwards.
But at the same time, he opened the door to several regional development agencies remaining in place if he is elected Prime Minister at the upcoming General Election.
He told the conference that most of the RDAs would go rather than all of them.
Last night a One North East spokesman said: We are concentrating our efforts very much on supporting the regional economy at a challenging time as we move back into growth following a deep recession.
Were focusing on putting in place the support for those sectors which will help lead forward this new economic growth, such as low carbon, new and renewable energy and advanced manufacturing, through initiatives such as the £60m Tees Valley Industrial Programme.
