A CAMPAIGN to persuade the Government to boost the North-East economy by switching jobs to the region has received a big lift.

Capita, which has the teachers' pensions agency contract for Mowden Hall, in Darlington, has given the town a glowing report.

In fact, the company is so impressed by hard-working northerners that it plans to open another office in the town.

The news bolster's The Northern Echo's Devolve to Darlington campaign, which seeks to highlight the case for a Government department to be based in the town.

Whitehall officials are already examining plans to disperse London-based departments throughout the reg- ions in a bid to break the capital's grip on power.

Although Capita is unable to officially back the Devolve To Darlington campaign, comments by Phil Sewards, the group's director of central government services, will help the town's case.

He said the town's flexible workforce and excellent transport links had hugely impressed the company.

Capita won the teachers' pensions agency contract at Mowden Hall in 1996 when it took on about 450 staff.

It recently won the tender again, meaning the company, which now employs 650 people, will remain in the town for at least another five years. It will soon open another office at Lingfield Point.

Capita's Darlington workforce does other Government work, including administering Cabinet Office pensions and winter fuel payments to pensioners.

"We do a lot of contract work for the Government and we have found Darlington an excellent base," said Mr Sewards.

"We inherited the Darlington office when the contract was won and it was decided to move from London."

Mr Sewards listed five reasons why Darlington had proved such an good location:

* A diverse workforce looking for all kinds of employment, from part-time to full-time;

* Flexible and resourceful staff who move easily from one kind of work to another;

* Excellent rail and road links, making it easily accessible for London, the Midlands and other cities in the North;

* Close to Capita's central government clients in Leeds, Sheffield and Newcastle;

* Low property, staff and support costs.

Mr Sewards said: "Darlington is cheaper certainly than London and the Home Counties, but also compares well to places like Leeds and Bristol.

"We have much enjoyed being there and we have good links with the borough council"

The Devolve To Darlington campaign has already won the backing of leading figures in the region, including Darlington Partnership chairman Alasdair MacConachie, Jeff Fitzpatrick, chairman of the Darlington branch of the North-East Chamber of Commerce, and Darlington council leader John Williams.

Although the campaign hopes to see a department based in Darlington, regional economists agree such a move would have a beneficial knock-on effect for the wider area, including Teesside and the Wear Valley.