THE Government's flagship job creation fund is failing to get money to businesses.

That was the damning conclusion of a Parliamentary Committee which said this week it was "nothing short of scandalous" that some two years into the programme, of the 1.4bn allocated by the Regional Growth Fund (RGF) only 60m had reached front-line projects.

It is alarming that a scheme which was supposed to soften the blow of tens of thousands of local authority jobs cuts is proving so slow to generate private sector employment.

The long-winded due diligence process means that some firms, such as

Seaham-based Cumbrian Seafoods, went bust before they got their hands on vital cash theyd been pledged.

The report found of the 236 offers of funding made in the first two rounds only 88 had been finalised, delivering 2,442 new jobs and safeguarding another 2,762 across the UK.

In recent months more money has been dished out, but its hard to deny that the numbers of jobs being created are a fraction of those claimed by headline-seeking ministers.

From the outset, the RGF, which invites firms to bid for cash to create jobs, has been criticised for discriminating against smaller firms while favouring big-hitters such as Nissan and SSI.

It has also been massively oversubscribed. The next round of winners are due to be announced in the upcoming weeks but I understand that about 1bn-worth of bids will be rejected.

Unless the Government allocates more money to the fund and cuts the red tape that is snarling up the system then the RGF will continue to be regarded as a botch job.

Good news to hear that shipments of Ringtons tea will be handled by the Port of Tyne for the first time in over 50 years, ending a practice that has seen stevedores in London, Liverpool and Bristol offload tea chests that were transported by truck to Ringtons factory in Newcastle.

The announcement came on the same day that a study showed free tea and coffee facilities for staff cost Tees Valley businesses 235.02 per year, per employee. I dont know what shocked me most, the cost or the fact that some employers still give their workers free cuppas.

But before you make your staff pay for their own the Leeds University Business School report reckons the wider benefits of tea breaks may substantially outweigh their costs.

The study concluded that they provide an opportunity to chat with colleagues, strengthening the social ties that bind people to their organisations and provide some respite from mentally and physically demanding work, reducing stress levels and increasing concentration and motivation when people resume work.

Thanks to PR boss Joan Grant for sending me the following message she was emailed by a happy client:

"The press release looks good to me, i don't remember saying all that things but you've made me look cleaver so its OK! Thaks."

Follow me on Twitter @AndyRichardsonBizEcho