IN May, the coalition Government made clear its intentions to replace regional development agencies (RDAs) by passing more responsibility for economic support down to a local authority level.

This route is to be pursued by establishing Local Enterprise Partnerships (LEPs).

Councils and business organisations have now been invited by Government to very quickly propose how these LEPs might work.

These LEPs will operate differently in different geographic areas. They will be formed from combinations of local authorities with private sector bodies. They may even take a form and cover an area similar to existing RDAs where the Government decides an RDA is popular.

Over the past year, the North East Chamber of Commerce (NECC) has been working alongside the Association of North-East Councils, and with several other business interests in the Northern Business Forum, to address how best to pursue economic development.

As a result, the 12 councils in this region have joined with the business community to demonstrate to the Government the depth of support in the North-East for strategic economic development at regional level.

We agree with the Government’s proposal that some economic activities could be pursued at a local level. These include planning, transport, housing and skills issues within local labour markets.

But functions on areas such as supporting strategic business sectors, inward investment, innovation and access to finance should not simply be centralised nationally.

Proposals for LEPs must be the product of proper engagement with the business community in each area.

Businesses need to speak up and prioritise exactly what is needed. There cannot simply be a re-issuing of old plans.

However, on strategic issues, a one-size-fits-all approach will not work here in the North-East.

We have an opportunity to help define future economic development in the North- East but we need to speak up and act, or risk being left with an outcome which is simply not suited to this region.

■ Martyn Pellew is NECC president