NORTH-EAST MEP Martin Callanan has criticised the Government over the cost of holding a referendum for a regional assembly.

As Deputy Prime Minister John Prescot visits the region today, Mr Callanan has challenged him to "come clean" over the millions of pounds of taxpayers' money he claims would be spent to promote the planned vote.

Mr Prescott will visit York and Durham to launch the Government's information campaign on a regional assembly, which he hopes will lead to people in the North-East agreeing to be possibly ruled from Durham.

The referendum for a North-East assembly is to take place next autumn but Mr Callanan, a Conservative MEP, claims the cost of promoting and holding a vote would be excessive.

He said the Government had only received 400 responses from a region-wide consultation on plans for an elected assembly.

Mr Callanan said: "I challenge John Prescott to outline to North-East taxpayers the full extent of the cost of the Government's muddled devolution policy.

"Mountains of glossy brochures have been produced, millions will be spent on the referendum and even more money will be spent following the launch of this latest campaign, and that is to say nothing of the costs incurred in the boundary review.

"In total, the cost for all this is likely to be in the order of eight million pounds. It is a disgrace."

A spokesman for Mr Prescott's office said: "We find it extraordinary that these comments are being made before the information campaign has even been launched.

"I am not sure where these figures have come from, but we would advise him to wait and see what is said.

"It is true that a postal vote will cost slightly more than traditional methods but we think it is worth it because they have been proved to increase turnout.

He added: "We think it is important that as many people as possible have a say in the future of their region."

Speaking in Newcastle yesterday on BBC1's The Politics Show, Mr Prescott said a regional assembly could have influence over the spending of £5bn in the North-East.

He said: "We have to make sure this region gets every chance it can to develop its economic potential.

"If people in the region can make decisions about the economic status of the region they will benefit."