In a statement to The Journal, Greggs chief executive Ken McMeikan, chairman of the CBI North East, set out the reason for the behind-the-scenes lobbying.
He said: “Our members’ position was very clear – they want to ensure that the North East Local Enterprise Partnership is in the best possible position to support the low carbon economy.
“Of the two options presented, one created £700m more income over 25 years and three times the number of jobs.
“An ambitious and forward-thinking Local Enterprise Partnership board making a considered and timely decision is critical to our ability to attract future inward investment for the North East.”
Council leaders made the initial decision despite detailed evidence presented in a report to them last Friday setting out how the city-based model would be more effective. The initially successful recommendation included investment in Swan Hunters and Neptune Yard in Tyneside, as well as hopes of new office accommodation near Nissan’s Washington factory to tap into the low carbon vehicle supply chain.
While this ultra low carbon/A19 plan has some good chance of success, council leaders were warned in expert evidence that the bid will not generate as much cash as the city centre proposal and has a much slower take up rate among businesses.
There is also a warning that because the proposed zone is so spread out, and not clearly defined, it may be turned down by the Government.
A bid built around Newcastle and Sunderland’s city centres was thought to have the potential to generate £400m for the region even once infrastructure costs are taken into account. It would have seen Enterprise Zone status built around Sunderland’s Vaux and Farringdon Row redevelopment sites, as well as Newcastle Science Central business space and hopes of a new retail sector along the East Pilgrim Street project, as well as extra cash for the Gateshead Quays.
Sunderland Council, lead authority for the local enterprise partnership, refused to comment. The LEP will meet again on Friday to appoint new private sector members to the board.
