THE North-East could lose its position as a world leader in stem cell research unless more funding is made available from the Government.

The warning from scientists came at a national conference on stem cell research, at Newcastle's Centre for Life yesterday.

Scientists said up to £100m was needed to invest in the UK industry in order to prevent a brain drain of stem cell specialists to other countries.

Stem cells are the body's "master cells" and can be harvested in laboratories and programmed to form new body tissues which, it is hoped, will aid treatments.

Professor Fred Wright, chief executive of the North-East's Centre of Excellence for Life Sciences, said: "The North-East currently leads the world in some aspects of stem cell research.

"However, we need a firm commitment to increasing investment in the sector if we are to retain this position and prevent other countries, such as the US, from overtaking us."

The conference was held on the same day that it was announced the creator of Dolly the Sheep had been granted a licence to clone human embryos in order to study the muscle-wasting motor neurone disease.

Professor Ian Wilmut, whose team, from the Roslin Institute in Edinburgh, became only the second to be given consent by the Human Fertilisation and Embryology Authority, denied that he was "playing God".

The team plans to extract stem cells from patients with the disease, implanting them into unfertilised eggs to create cloned embryos.

Prof Wilmut said: "Human beings have been changing the world around them for a very long time, in general to good effect.

"We all take for granted the very much healthier life that we have now, compared with people 100 years ago.

"I think the majority of people support this type of research."

Last year, scientists from Newcastle University were granted similar permission in a move that was criticised by pro-life campaigners.

Prof Wright, whose team is focusing on ways to tackle diabetes and degenerative liver and blood diseases, said opponents were creating "unnecessary hype".

He said: "There is a lot of misguided and not well-informed publicity.

"We respect the views of pro-life groups and others, but talk of cloning embryos and so on directs attention away from important research with other types of cells.

"The potential for stem cell research is immense as it ultimately holds the possibility to cure disease."