THE new chairman of an influential group representing 25 North-East councils has mapped out his priorities for the coming year.

Bob Gibson, leader of Stockton Borough Council, was yesterday appointed chairman of the Association of North East Councils, at its annual meeting held at Derwentside District Council's offices in Consett, County Durham.

He takes over from Newcastle City Council leader Tony Flynn, who has chaired the association for the past two years.

Councillor Gibson said the association, which acts as the voice of local government in the region, was facing a particularly significant time.

He said: "The priorities for the coming year will be to influence the 2004 Government Spending Review, to make the case for a fair deal for the North-East and to close disparity between this region and the rest of the country in social and economic terms.

"The announcement of a referendum next year on a directly elected assembly for the North-East presents the association with an opportunity to properly consider all the issues around regional government, and what powers and functions any elected regional assembly might have".