North East to benefit from fund
Feb 24 2010 By Peter McCusker, The Journal
The first company to benefit from the new £125m fund to support North East businesses is expected to be named within weeks. Peter McCusker takes a look at how the fund works and who will benefit.
Central government backing North approach
THE model used by One North East in developing the £125m fund is being recommended by the Government for adoption by the other regional development agencies.
ONE was advised on the creation of the fund by experts at the Newcastle offices of Eversheds law firm and accountants Deloitte.
Eversheds partner Ian Gilthorpe said: "The fact that central government has endorsed the North East approach, urging other regional development agencies to follow in the footsteps of One North East, demonstrates the quality and strength of our regional development agency.
"This project highlights the importance of collaboration at both a national and a local level and illustrates the benefits of having a strong regional development agency which develops and implements critical strategic initiatives which are tailored to the needs of the region."
John Spurr, director, Deloitte, added: "Ensuring SMEs have appropriate access to funding is absolutely critical for the development of the region.
"The business community is looking for a straightforward approach to access to finance. The launch of this fund will not only benefit the North East, it will also benefit other regions as central government is encouraging other regions to adopt a similar structure to that being used in the North East."
Malcolm Page, deputy chief executive, One North East, said: "The importance of the European Investment Bank’s willingness to invest in our new fund should not be underestimated. It is a commercial organisation and like any other commercial organisation is looking for a return on its investment. Its desire to invest in the region’s SMEs demonstrates the region’s potential for growth.
"I also want to praise the good working relationship we developed with Eversheds and Deloitte."
