FIRST the good news: country folk in the North-East are healthier than those living in towns and access to services is better than many other rural regions in Britain. And the bad? Pay in rural areas of the region is the lowest in the country.

These are just some of the findings of the latest State of the Countryside report, produced by the Countryside Agency, for 2002.

Although the region is shown to perform well in some categories, in others it comes bottom of the league when compared to other parts of England.

Health. - Rural dwellers are healthier than their urban counterparts in terms of basic health indicators, but the region has the highest rural mortaltiy rate and one of the highest percentages of low birth weight babies of all the English regions.

Crime. - The North-East has the lowest figure for robbery, burglary, sexual offences and theft from motor vehicles compared with the rest of rural England and the number of homeless is significantly less than in other regions.

Services and Rural Mobility. - Overall the region's rural households have better geographical availability of supermarkets, secondary schools, libraries and job centres, as well as banks and building societies, compared to the national average. Access to petrol stations is below the English regional average, but 75pc of North-East parishes have a bus service six or seven days a week, the highest percentage in England.

Population and Settlements. - There has been a small increase in the total regional population living in rural districts, rising from 9.4pc to 9.92pc between 1981 and 2000. There is also a higher percentage of people in the older age groups (45-64 and 65-plus) in rural areas than in urban centres.

Housing. - While the average rural house price in the region (£92,312) is the second lowest in England, the figure conceals a wide range of prices in different rural districts. Average house prices vary from £50,427 in Wear Valley to £130,887 in Castle Morpeth. Rural households make up only a small proportion of the homeless in the area at just 0.19pc, compared with a national average of 0.32pc. However, data indicates that homelessness is a growing issue in rural parts of the region, having risen by 62pc between 1997/8 and 2000/1.

Employment and Education. - Just over a third of employed rural residents in the North-East work in the public administration, education or health sectors, the highest percentage of rural areas in England.

Income. - Average weekly pay is the lowest for the rural part of any region in the country and there is a large disparity in household incomes in different rural districts. While 7pc of rural wards have an average income below £15,000 per year, 37pc have an average of more than £25,000. The Countryside Agency says the report reinforces concerns that the region's rural economy is performing weakly compared with other parts of the country.

Agency Board member Prof Philip Lowe said: "Our region has the highest level of rural unemployment and one of the least qualified workforces in England, with less than 42pc of those of working age in rural parts of the North-East having qualifications at NVQ Level 3 or above.

"We also have the lowest proportion of rural businesses per 10,000 population compared to other regions and significantly lower internet use outside main urban centres."

Keith Buchanan, regional director of the Countryside Agency, said the report highlighted the importance of re-thinking the role of many traditional rural activities.

He said: "There are huge decisions to be made if we are to bring about the changes that will ensure a lasting revival of our rural economy.

"Many of the initiatives being recommended in the wake of Sir Donald Curry's post foot-and-mouth inquiry are central to our thinking. Now we must ensure that change happens."