A CALL is made today for the beefing-up of regional development agencies (RDAs), such as One NorthEast.

But One NorthEast emerges with more credit than most RDAs in a report by the manufacturers' organisation, the Engineering Employers' Federation.

The federation believes RDAs must undergo a "significant revamp" if they are to tackle regional imbalances and improve economic performance outside the South-East.

Its report, published today and submitted to the Treasury, acknowledges RDA successes, like tackling urban regeneration.

But it claims there has been minimal effect on regional economic performance.

The federation's northern director, Alan Hall, said: "While RDAs have made a difference in some key respects, so far there has been little significant impact on our regional economies."

But he said this should be measured against their short lifespan so far, while they have only recently had discretion over their own budgets.

"It does not seem sensible to us that these regional bodies are asked to look at improved economic performance and yet have no remit over transport, skills or planning," he said.

"The proposal built into this research is that One NorthEast and the other RDAs should be given much greater influence over these crucial areas.

"This major piece of research features faster employment growth over the past six years in our own North-East region.

"It also shows that only our region is accelerating in economic growth terms in comparison to other regions.

Mr Hall added: "It is interesting that the only region which shows much improvement in productivity growth is our own region, the North-East."

The federation's northern area has more than 450 member companies in the region.

One NorthEast chairman Margaret Fay said the achievements of RDAs should not be underestimated.

She cited One NorthEast's work improving productivity of 27 companies by saving £11.3m in the past year, while committing £4.2m over the next two years to improve energy efficiencies and developing "smarter working skills" in 160 target businesses.

Mrs Fay said much of the EEF report "chimes with our own thinking".

But she added: "I broadly welcome its recognition of the need for RDAs to be given greater responsibilities to drive regional economic growth."

Steve Pallas, Nissan personnel manager at its Wearside plant, praised One NorthEast's North-East Productivity Alliance scheme, helping to spread improved manufacturing techniques "in a two-way working relationship" over the past six years.