Small business represents a big element in the economic life of the North-East. Politicians these days are well aware that without the contribution small businesses make to the economy, there would not be any economic growth.

In the past decade, eight large companies have left the North-East or reduced their operations, resulting in a loss of 5,000 jobs. Small businesses are providing the meaningful growth in financial wellbeing. More than 60 per cent of small businesses in the region which responded to a recent detailed survey expected to expand in the next 12 months.

A prosperous North-East in which business can grow is vital. There is, though most people are unaware of it, an unelected version of a regional assembly in existence now, so one wonders if the creation of an elected regional assembly would give smaller businesses additional benefits.

Almost unnoticed, while small businesses have been focused on growing or surviving, the North-East has become regionalised. According to Deputy Prime Minister John Prescott, the idea of English regionalism has been his personal dream for more than 30 years and it would seem it originates from a well-founded desire to bring decision-making closer to the people.

At the annual conference of the Federation of Small Businesses, delegates representing the 185,000 members debated the effects of regionalisation.

Eighty per cent thought there was no benefit for business people in the Government's plans. Decision-making, it was concluded, would not be more business-friendly with a regional assembly. But will the creation of new politicians create new resources from which businesses can grow?

How will all these new politicians in the elected assembly actually provide the tools vital to economic growth? Will the consequential loss of Durham County Council and other major changes to local authorities actually make any difference?

Only when the Government has published the details of the powers that will be given to Regional Elected Assemblies will any assesment of the effects on the business community be possible.

Regionalisation is occurring anyway and the unelected regional assembly will continue to act as the body through which the European Union will channel funds. So what difference will an elected regional assembly make to the process of business in the North-East?

Probably none, which is why the Federation of Small Businesses remains neutral as a matter of policy on the issue of whether or not to support elected regional assemblies.

Peter Troy is chairman of the Darlington Branch of the Federation of Small Businesses