BUSINESSES in the region are taking a keen interest in the current debate on whether the region should have a regional assembly.

This is because a regional assembly for the North-East would significantly alter how the region is governed and this would affect the environment within which every business in the region has to operate. The North East Chamber of Commerce has been proactive in trying to articulate the collective views of business on the matter. This has not been easy, as survey after survey has shown that there is no clear consensus about the merits of an assembly. While there is a strong view that the devolution of substantial power to the region would be a good thing, most companies are unimpressed by the powers being offered in the current proposals.

The chamber, working with the CBI, decided to set out what would improve the case for an assembly and sent ten challenges to the Deputy Prime Minister, John Prescott. Those challenges included calling for any assembly to be cost neutral, to have significant defined powers and to actively involve business. The Deputy Prime Minister has responded by asking the chamber to enter into a constructive dialogue about how an assembly might work.

The chamber now has had discussions with colleagues in London, Scotland and Wales to learn from their experience of devolution. The overall view seems to be that there can be advantages for businesses in devolved powers, but only if the fundamentals are right and the debate is not sidelined into arguing about fancy buildings. In particular an assembly can act as a strong lobbying body for the region. However, the chamber would want to see the assembly being more than a talking shop. Any assembly would need the powers and finance to make a difference in three crucial areas to business - skills and workforce development, transport, and business support. Indications are that the Government may be willing to move significantly on each of these.

The chamber is also pressing for business to be actively engaged in decision-making. It is encouraged to hear that the 25 elected members will be forced to consult with and hopefully actively engage with the business community, in determining matters likely to affect business.

It has submitted practical proposals for the active engagement of a business forum and is currently waiting for a response.

The chamber is committed to helping shape a new system of government that will be of real benefit to the region. It will then be up to individuals to decide whether they wish to support this in the referendum to be held this autumn.

George Cowcher is chief executive of the North East Chamber of Commerce.