JOHN Prescott rolled through the North-East and North Yorkshire yesterday in a coach covered in "Great North Vote" stickers as he began the Government's campaign to generate interest in regional government.

Next October, the three Northern regions - the North-East, Yorkshire and Humberside, and the North-West - will hold a referendum on whether they want their own mini-parliament.

Yesterday, Mr Prescott, the Deputy Prime Minister, toured Durham and York to launch the Government's Your Say campaign designed to inform people about what an assembly might mean for them.

The Conservative North-East MEP Martin Callanan has branded the campaign as propaganda, which he estimates will cost the taxpayer £2m, but Mr Prescott said: "Here's your chance to vote for an assembly. Vote 'yes' or vote 'no'.

"If you call information propaganda, I have to live with that."

If the regions agree to assemblies, they will have an annual budget of £350m and could influence how a further £600m is spent. Mr Prescott said this is the money currently spent by Whitehall and unelected quangos.

He said: "It's the civil servants who make the decisions at the moment, this whole campaign is called 'Your Say'.

"At the end of the day people in the North will decide. I can't make the decision.

"In all three regions, they have been demanding this for decades."

Mr Prescott looked at the regeneration of Durham City centre and then, accompanied by Nick Raynsford, the Minister for Local and Regional Government, addressed business leaders in Durham Castle. He told them: "The message on the ballot paper will be simple: 'should there be an elected assembly for the North-East region?

"We believe that spending on issues like jobs and housing should be taken at regional level by an assembly elected by - and accountable to - people in the region. It will strengthen the building blocks for economic growth and prosperity."

The Your Say campaign has produced a leaflet which summarises the powers that a regional assembly would have:

Business and jobs: The regional development agencies One NorthEast and Yorkshire Forward will be directly accountable to the assembly.

Skills: The assembly will ensure that local people have the skills to take advantage of new job opportunities.

Housing: The assembly will be able to plan where to build new or improve existing housing.

Planning: It will co-ordinate plans for the development and use of land of land in order to attract more businesses and jobs, to protect the countryside and to regenerate rundown areas.

Transport: It will advise the Government on how money for transport should be spent in the region.

Fire and Rescue: It will be responsible for new regional fire authorities.

Public Health: It will play an important role in promoting the health of people.

Culture, Tourism and Sport: It will develop a strategy for culture and sport and promote regional tourism.

An assembly would have 25 members elected by proportional representation to ensure every hue of political opinion is included. Where it is based will be decided by the first members, although it is seen as significant that yesterday's events were held in Durham and York - and Mr Prescott is going to Warrington in the North-West today. The Northern Echo is campaigning for the North-East assembly to be based in Durham.

The Boundary Commission's preliminary recommendations about how the county council structure of North Yorkshire, Durham and Northumberland will be replaced by unitary authorities are due before the end of the year.