Business as usual for Business and Enterprise North East

Jun 9 2010 by Adrian Pearson, The Journal

THE head of one of the region’s most important business creation agencies has promised to continue its mission despite fears of cuts.

Business and Enterprise North East administers the regional branch of Business Link and other contracts on behalf of national and regional organisations.

Its 420 staff are tasked with helping create thousands of jobs a year in small businesses.

Alastair MacColl, chief executive, said that despite experiencing the harshest economic conditions in a generation, Business and Enterprise North East was “in a strong position” to build on early signs of growth.

He said: “We have built a comprehensive and integrated portfolio of business support solutions that are making a significant and positive impact on the region’s economy.

“Clearly the Government is facing some tough choices as a result of the UK’s current budget deficit and that will undoubtedly have an impact on business support.

“As an independent company operating the Business Link service, it would be inappropriate for BE-NE to speculate about the future of that service or to try and influence policy relating to that service.”

Since its launch in 2007 the company has helped over 12,500 businesses to start and played a part in creating over 14,900 jobs.

Nissan grant reviewed

A REVIEW into whether Nissan will get a £20m Government grant to support its plans to build electric cars in Sunderland will be "fast tracked".

Business Minister Mark Prisk has revealed that he has spoken to Nissan in the past week and insisted the grant would go ahead if it offered value for money and fitted in with the Government’s priorities.

In a written Parliamentary answer, he also said that he had spoken to Ford and Vauxhall as the Government comes under pressure to confirm grants supporting the car industry will go ahead.

The coalition Government ordered a review of all spending decisions made by the previous Labour administration since January, which includes the grant to Nissan.

Mr Prisk said: "I have spoken to Ford, General Motors/Vauxhall and Nissan in the past week about a range of issues.

"Government are reviewing commitments made since 1 January 2010, including to these three companies.

"Where projects are good value for money and consistent with Government’s priorities, they will go ahead.

"We have asked HM Treasury to fast track a decision to give clarity as soon as possible to the companies and their work forces."

His comments came as Wearside MP Bridget Phillipson continued to press for answers on the grant to Nissan.

Using her maiden Commons speech, she said: "The North East led the world during the industrial revolution, and I am confident that we can do so again in being at the forefront of developing new green technologies and industries.

"I was therefore concerned by the Prime Minister’s refusal to confirm whether the Government would honour the £20.7m grant awarded to Nissan to develop the next generation of electric cars."