Region would be the loser if RDA abolished

Feb 24 2010 By Andrew Hebden, The Journal

THE fate of regional development agencies has been the subject of intense debate recently, with Prime Minister Gordon Brown telling The Journal last week that reported Tory plans to dismantle the RDAs was testament to declaring war on the North East.

Earlier, the Conservatives’ business spokesman Kenneth Clarke did little to disguise his party’s disregard for the agencies as he dismissed them as the "last arms of John Prescott’s unwanted plans for regional governance". He told an audience of businesspeople that the region would have to present a powerful case for retaining One North East if the Tories win the forthcoming election.

By their nature, RDAs were never going to be everybody’s cup of tea. They are easy targets for any political party seeking to slash bureaucracy and cut costs.

All the same, there have been several instances over recent weeks of high-profile businesspeople in the region standing up for the agency, especially in dialogue with senior members of the Conservative Party.

They are keen to make the point that, while RDAs may not be hugely popular elsewhere in the country, One North East is generally well regarded by its local business community and the region benefits from having an organisation which can take strategic decisions for the good of the regional economy.

It is similar to the arguments put forward by this newspaper’s Case for the North East campaign which, while not prescriptive about the type of organisation which performs this role, does argue that the North East needs a strategic economic body of this sort.

Rarely has this been better illustrated than through the Finance for Business North East scheme. As we report today, the reaction from the North East business community to this fund has been remarkable with hundreds of businesses expressing an interest in it.

This reaction demonstrates just how much this sort of fund was needed in the current economic climate when access to finance remains the single biggest challenge to many businesses.

And it is fantastic to see venture capitalists from outside the North East coming to the region for the first time to invest in local businesses.

It is not surprising to learn that the model is being looked at by other RDAs as one which could be rolled out to other parts of the country.

This fund is just one example of what can be achieved by an agency that is in tune with the needs of the region it serves and has the people with the skills needed to make it happen.

Whatever happens to the RDAs after May, it would only be bad news for the North East if that important economic role was neglected.

Andrew Hebden is head of business at ncjMedia