A BUSINESS pressure group is calling on the Government to scrap the North-East's unelected regional assembly.

The Forum of Private Business (FPB), which represents 25,000 small and medium-sized companies, says businesses would rather the £23m it costs to run England's assemblies each year was spent on improving public services.

National chairman Len Collinson said the assemblies had abjectly failed to communicate with small businesses, despite having a remit to drive regional economies.

"Our members are scathing about the performance of regional assemblies," he said.

"Many businesses do not even know they exist.

"The assemblies have failed to inform businesses about who they are, where they are and what they do, even though they cost tens of millions of pounds to run and were set up way back in 1998.

"Employers are telling us loud and clear that this money would be better spent on improving transport and public services, not creating more pen pushers in plush offices.

Kathy Evans, managing director of Vendetta IT Business Services, in Gateshead, said: "I can honestly say I do not even know where the North-East Assembly is.

"You could ask everyone on this street and they'd probably say they did not even know it existed. In fact, they'd probably say they voted against it last year in the elected regional assembly referendum.

"My question is, what does it do? It has had no impact on my business at all.''

No one was available for comment at the North-East Assembly last night.