THE man in charge of drawing up a plan to close the £29bn productivity gap between the North and South said yesterday: "We must avoid the hand of parochialism."

Business leaders, academics, voluntary workers and delegates from environmental groups met for an update on The Northern Way, a ten-year strategy for the region's prosperity.

Alan Clarke, chairman of the task group overseeing the strategy, told the gathering: "This is the best opportunity we have in the North to move things forward."

The Northern Way was launched in September by the three development agencies covering the region - One NorthEast, Yorkshire Forward and the Northwest Regional Development Agency.

Deputy Prime Minister John Prescott announced a £100m fund for the scheme, which is designed to create more jobs and investment and improve living conditions.

Yesterday's update briefing at Hardwick Hall, Sedgefield, County Durham, was attended by about 100 delegates.

The growth strategy was said to have received a particularly positive response from Mr Prescott, but he had called for a more detailed plan ahead of an urban summit in January.

Among the aims of the ambitious project are:

* bringing 100,000 people off benefit and back into work by 2014;

* increasing business start-ups and expenditure in research and development;

* boosting ship arrivals at north ports from 22 per cent of the national total to 25 pre cent;

* reducing congestion to below the national average by 2010; and

* increasing the number of overseas tourists by 20 per cent by 2008.