ONE NorthEast last night pledged £4.7m to help create up to 100 science and technology jobs in the region amid fierce criticism that it is massively under-performing.

The promise came on the day a County Durham manufacturing firm warned as many as 70 jobs could go because of competition from Asia.

Staff at Warner Electric were warned the Bishop Auckland firm was entering a consultation period to see if it was still a viable operation.

The funding by the regional development agency will help secure an £18.2m three-year project that is hoped will put the North-East on the world map for scientific excellence.

Led by Durham University, the Science and Technology for Business and Enterprise project will help safeguard a further 280 jobs and create four businesses.

Two new science research centres are to be developed at the university.

One NorthEast chief executive Mike Collier said: "We are delighted to back this exciting project which links into our Strategy for Success."

The announcement comes after the agency came under fire over figures released by Employment, Industry and Regions Minister Alan Johnson that appeared to show it was not meeting key regeneration targets.

He told the Commons that only 608 job opportunities were created in the first quarter of the year, compared with a yearly target of 7,449.

Over the same period, 21 new businesses were added to the regional economy, compared to an annual target of 406.

One NorthEast has insisted the figures were in line with its projection that many of the big economic benefits will kick in towards the end of the year.

It said it had already topped its annual forecast of attracting jobs through foreign investment and Government grants, creating 2,303 jobs as opposed to a target of 2,280.

Last night, Councillor Ben Ord said that, while he was pleased the agency was putting money in to develop Spennymoor after job losses at Black & Decker, it was failing to create jobs.

"We are losing jobs in this area very quickly but they are not providing replacements," he said.

"I do feel, though, that they will help us to attract industry through grants in this area and they are helping us with a major redevelopment of the town centre."

Councillor John Shuttleworth, who represents Weardale which has been hit by a series of job cuts in recent years, called for One NorthEast to be abolished.

He said "They have done nothing for this area. A Weardale task force was set up but we have seen no results. They are all talk and no action."

Fears for jobs - Page 1