NICK Clegg has warned the region it will have to go through a “painful transition” before it turns its back on rising unemployment.
On a visit to Tyneside the deputy prime minister admitted more would have to be done to help the North East, but insisted the Government had a series of initiatives which would boost the private sector in the region.
His visit comes as questions continue over an apparent delay to nearly £1bn of investment due to be handed out as part of Mr Clegg’s regional growth fund.
Mr Clegg was visiting Procter & Gamble’s Tyneside facilities, which benefited from £5m of growth fund cash announced in the first round back in April.
Since then 140 North East firms have bid for further cash in a second round, with a decision still awaited on the fund.
Speaking to The Journal, Mr Clegg said the eventual growth fund hand outs were just one in a package of measures he hoped would benefit the region’s economy.
He said: “Yes we need to do more, I accept that, totally accept that we must do more for the North East, but we are doing a lot already.
“What is needed here is a transition towards an economy in the North East where we build on the fabulous traditions of manufacturing and exporting in the region, that is the future and why I believe the long-term future for the region is bright. But it is a painful transition, from a broken economic model where under Labour a huge amounts of money was thrown at the region but they did not create lasting jobs.
