THE North East could become a world “powerhouse” for manufacturing under the coalition Government, according to Deputy Prime Minister Nick Clegg.

In an exclusive interview with The Journal, Mr Clegg said the Government was getting behind manufacturing and engineering companies as well as boosting skills to create lasting jobs.

He accused Labour of failing the region by “chucking” money at “stop-go” job schemes when it was in power, but acknowledged the coalition needed to do more to bolster economic growth.

His comments come as he today visits the region to formally sign off funding for three companies that will help create or protect just under 100 jobs.

Procter & Gamble, based at Longbenton, will create a UK centre of excellence developing greener and more efficient cleaning products.

Blyth-based boat building company Alnmaritec is investing in a 100-tonne lift so workers can take vessels out of the water to repair them. And Chirton Engineering, based in North Shields, will buy new equipment. The company provides precision engineering components to offshore industries as well as a leading formula one racing car team.

The grants are coming from the Government’s £1.4bn regional growth fund established to help private sector job creation in areas heavily dependent on the public sector.

Mr Clegg said: “The North East used to be a world powerhouse for manufacturing. I believe it will be again in the future, but only if we as a Government get behind manufacturing and not abandon it like Labour did.

“These three projects will lead to just short of 100 new or protected jobs – that’s, of course, a small number in the context of wider challenges for the North East.

“But I think they are just very specific examples of what we are trying to do to make sure, that just as we are sadly having to make savings in the public sector, we put money behind private sector jobs that are built to last.”

The Deputy Prime Minister promised more growth fund announcements as part of a rolling programme and that 5,000 jobs would be created or protected in the region from bids received so far as well as 8,000 posts in the supply chain.

He added that dozens of projects backed by the growth fund had already created and secured jobs because firms knew money was on the way.

Former regional minister Nick Brown said: “While 100 jobs are welcome, it is not going to make much of a dent on the region’s unemployment, which is rising.”

The Labour MP for Newcastle East added his party’s approach to regional economic development, when in power, was sustained and consistent.