welcomed by groups BUSINESS leaders in the region have welcomed a Conservative rethink over the party’s plans to scrap regional development agencies.

Industry bosses in the region last night gave their full backing to One North East and Yorkshire Forward.

The support came after Tory business spokesman Ken Clarke revealed that he had ordered a review of his party’s policy on the agencies.

The move followed an admission that Conservative policy on the issue was unclear.

Nationally, the Conservative plans to either scrap the agencies or drastically reduce their powers have been strongly criticised.

Further support for the agencies came yesterday from David Longstaff, regional organiser for the North-East branch of the Federation of Small Businesses.

Talking about One North East, he said: “Why change a wheel that’s working?

“We would advise strongly to keep the regional development agency.”

The Tory rethink was also welcomed by James Ramsbotham, the chief executive of the North East Chamber of Commerce.

He said: “In the North-East, we need to focus on strategic economic development at the regional scale to give us critical mass.

“We need strong leadership over issues including infrastructure, skills, international trade and investment, and businesses need a body they can work in genuine partnership with.”

Yorkshire Forward was given similar backing from the Leeds, York and North Yorkshire Chamber of Commerce.

Chief executive Gary Williamson said: “Leeds, York and North Yorkshire Chamber regularly polls the views of its members, and when questioned on the future of regional development agencies, the overwhelming view is that the region benefits from a strategic and joined-up approach being taken to infrastructure and skills. Overall, Yorkshire Forward has performed this task well for our region.”

Mr Williamson said no political party had yet explained who would take over the important functions carried out by the agencies if they were axed.

One North East said its fate was a matter for the Government.

A spokesman said: “At One North East, we remain fully focused on the task we have to support business as we move out of recession and put in place the foundations for longer-term economic growth.”

Tom Riordan, the chief executive of Yorkshire Forward, said it had the backing of business groups, and added: “Councils will have differing views, but generally speaking we have worked extremely well with them. Both recognise the difference we can make, particularly in the recession.”