MINISTERS have been accused of breaking a promise to hear the region’s case after cancelling a planned consultation on what should happen to a multi-million pound jobs agency.
Hopes had been raised that the region could retain some regional decision making powers after the House of Lords was told there would be a consultation on the imminent demise of development agency One North East. Such was the support for the agency, which was responsible for safeguarding and creating tens of thousands of jobs over the last decade, that the current Labour leader of Newcastle Council and his Liberal Democrat predecessor teamed up to ask the Department for Business to fully commit to the consultation.
But a letter from Business Minister Mark Prisk in response to their concerns has made it clear the Government now has no intention of staging another of its listening exercises.
Writing to the councillors, Mr Prisk said: “The Government is still committed to consultation for bodies covered by the Bill, however, with the case of the regional development agencies it would not have been possible to carry out a meaningful consultation given that the closure programme is so far advanced.
“Additionally, delaying the programme while a consultation was carried out would not be beneficial for the economy or for the future of economic development and would risk jeopardising the more cost effective delivery of economic development provision we are putting in place.”
His letter stands in stark contrast to assurances previously given that the Government was open to talks.
In May Lord Taylor of Holbeach, a Government Whip, told the Lords that while the policy to scrap the agencies was agreed, there was an opportunity for others to have their say.
He said: “The regions of the country, if they feel particularly motivated, will be able to discuss the reasons why they believe no change should be made to their status.”
Lord Taylor added: “The policy decision has been made. It is the resolve of the Government to implement the policy. Nonetheless, there will be a consultative process, at which there will be an opportunity to argue the opposite case.”
He was prompted to give the assurances following pressure from former Newcastle Council leader Jeremy Beecham.
Last night Lord Beecham said: “This is the latest in what has quite frankly been an extraordinary saga. We at one point had Vince Cable saying the North East has a good case to keep its development agency and we ended up without even having a say over what happened.
“What we have now is a direct contradiction of what was said to me in the Lords. The whole thing is a compete shambles.
“It’s no way to conduct Government businesses, and raises further concerns over the issues, including what happens to the agency’s assets.”
