46 companies draw on emergency support fund

Oct 7 2008 by Peter McCusker, The Journal

ALMOST 50 North East firms have tapped into an emergency £10m support package set up to help regional businesses counter the economic downturn.

The initiative was launched in early September by One NorthEast in an effort to protect and create jobs. Firms using the help have so far included those in manufacturing, haulage, IT support and retail.

The package included more than £6m to help new and growing firms, £2.5m for established business to “work smarter”, £250,000 to help struggling firms and £1m to help with rising fuel bills.

The news that 46 companies have made use of the help comes as ONE today discusses the strengths and weaknesses of the region at its annual review meeting.

An audience of more than 300 businesspeople are expected to attend the event at The Sage Gateshead, where ONE chairman Margaret Fay will reflect on the business successes of the past financial year.

“Great things have happened over the course of the past year, with firms across the region expanding, investing and creating jobs,” she said.

“The success of firms such as Wellstream and Sage shows that our region remains a fertile environment for business investment.”

Keynote speaker Northern Rock non-executive chairman Ron Sandler will talk about the Gosforth bank’s commitment to the region.

One NorthEast chief executive Alan Clarke said: “Northern Rock will play an important role in the North East’s economic future and we are delighted that Mr Sandler will use the platform of our annual meeting to outline to the wider North East business community how the bank will consolidate and grow from its regional base.”

Mr Clarke said: “While the region is still seeing strong growth in sectors such as oil and gas, new and renewables and the process industries, there is no doubt that the credit crunch is beginning to impact on our economy.

“One NorthEast has a key leadership role to play at this time, helping address immediate concerns while also looking to the longer term and putting in place the building blocks for when the economy recovers.

“Tackling the effects of the credit crunch and rising commodity prices is One NorthEast’s number one priority at this time.”

During 2007-08 ONE has:

Invested £29.8m to stimulate enterprise and business activity;

Pumped £51.4m into consolidating business growth and expansion;

Allocated £45.2m to expand vital business sectors and connect them to scientific research;

Invested £62.7m in Tyne and Wear and Tees Valley regeneration projects and developing the rural economy;

Underpinned cultural and tourism growth with £14.1m of funding.

To read more about today’s meeting visit nebusiness.co.uk, or see tomorrow’s Journal.