PLANS to reduce the number of Department of Trade and Industry (DTI) staff by a quarter may have serious repercussions for North-East business, the region's chamber of commerce said last night.

Leading civil servant Sir Robin Young said this week that the job cuts would not affect the services encouraging export. The North East Chamber of Commerce (NECC) said the region's strong worldwide trade links could be jeopardised if support services were cut.

The NECC's international trade committee said that an efficiency review of the Government could cut jobs and services in the DTI's export operation, UK Trade and Investment (UKTI).

The Gershon review of the DTI has recommended that 1,010 of 4,500 DTI head office jobs should be shed.

Richard Swart, chairman of NECC's international trade committee, said: "We have a commitment to developing strong international trade in this region, which is reflected by our positive trade balance.

"We are extremely concerned about any negative consequences that could impact on us as a result of DTI cutbacks.

"We need answers to fundamental questions about the effect of these cutbacks and would encourage greater dialogue between Government and business on this matter."

Mr Swart, who is also managing director of Berger Closures, in Peterlee, County Durham, said several issues needed to be addressed.

He called for more information about which services would be affected and what the consequential effect on business would be.

He said: "We need to know which sectors are the most vulnerable and how we can put measures in place to cover for any shortfall in export services."

Concerns have been raised that entrepreneurial ventures would struggle the most if cutbacks limited export services.

"Smaller businesses need the most support and it is these businesses that we are looking towards to provide the economic growth of the future," said Mr Swart.