Alistair Arkley column

Sep 15 2005 By Alistair Arkley, The Journal

So who do you think should be providing leadership for our region?

On the face of it there are plenty of organisations to choose from. After all we have a Regional Development Agency, charged with the task of driving forward the North-East's economic renaissance. Then there's the Government Office for the North East, Whitehall's regional presence which must surely have access to levers of power?

Yet again there is the Northern Group of Labour MPs - which includes very experienced and able politicians - and we also have the new "self standing" Association of North East Councils.

So is there really any need or justification for another structure such as a regional assembly? I am quite aware that many in the business community would give a resounding "no" to that question - that became clear during the referendum campaign. However, I think we need to reflect on the realities that, despite the admittedly significant range of regional agencies and bodies, in truth none can offer the breadth of representation - or genuine independence - to fulfil that vital "Voice of the North-East" role.

Perhaps the crucial question facing the North-East is whether the "regional agenda" and public-private "partnership" really have the level of political priority and support they seemed to enjoy only a couple of years ago?

Following the referendum result it does seem that Government enthusiasm for devolving power and resources to the English regions has waned and that initiatives such as the "city region" concept are gaining greater momentum. Similarly ministers such as David Miliband have made clear that they see "partnership" within the public sector - through measures such as Local Area Agreements and bodies such as the revamped Association of North East Councils - as being the way forward.

One could be forgiven for suspecting that the Government is putting all the various options into the melting pot and waiting to see which will win out at the end of the day. That may have political appeal, but I'm not sure it is good for either the business sector or the region as a whole.

As chair of the Northern Business Forum, I am certainly aware that there are serious doubts about the viability of the current Regional Assembly and we have argued strongly that it needs to make major changes in terms of its membership, structure and operation. Equally there are concerns that One NorthEast - and especially its draft new regional economic strategy - has significant weaknesses. However, the question we must ask ourselves is whether the apparent political shift towards largely public sector-led structures and initiatives is a better alternative? I know there will be many colleagues who will take the view that it doesn't matter - that we in business should have nothing to do with yet more "talking shops" and yet more bureaucracy.

Within bodies such as the Regional Development Agency and the sub-regional partnerships - and yes, even the Regional Assembly - we do have a place at the table. Yet if Local Area Agreements and City Regions win the political argument they will also gain the power and the money and what then for the voice of business - and indeed other interests such as the voluntary sector - to be heard and influence the future of the region?

It is perhaps ironic that one of the key reasons the people of the North-East voted "no" in the referendum was because they feared that an elected assembly would still leave our region dominated by the same old political and public sector interests - yet that's exactly what seems to be happening now.

Alistair Arkley is chairman of the Northern Business Forum and chairman of New Century Inns.