NORTH-East businesses took Chancellor Gordon Brown and Conservative party leader Michael Howard to task over employment and transport issues yesterday.

Two leading figures from the North East Chamber of Commerce (NECC) led the questioning of the politicians at the British Chambers of Commerce in London.

Maggie Pavlou, Parkdean Holidays' human resources director and NECC vice-president, challenged the Chancellor to make a firm commitment to cut employment regulations if Labour won the election.

She said: "What plans are there to help reduce the burden on employers as a result of the increase in employment legislation?"

Mr Brown blamed the European Union for the extra red tape on businesses.

He said: "We should move from the general regulatory ways of the past to risk-based analysis. If a company shows they have got everything right, there is no need to regulate them."

Alan Ferguson, executive chairman of Fergusons Transport and president of the North East Chamber of Commerce, asked Mr Howard what his party would do to address transport issues in the North-East.

He said: "One of the problems in a region like the North-East is the availability to get our goods to market and the lack of infrastructure investment in the roads." Mr Howard criticised Labour, accusing it of cutting £4bn from the roads budget.

He pledged to address road transport issues if the Conservatives were elected, but did not specify how this would affect the North-East.

He said: "Business is still paying the penalty for the cancellation of the roads programme.

"We have committed to spend as much as Labour on transport. Much of that would be on roads."