Q. Industry in the North-East is suffering badly because of the current exchange rate and business is moving to other parts of Europe where labour is cheaper. Would joining the single currency help?

A. It's true that global competition is becoming tougher, as tariff barriers and transport costs fall, communications become easier and investment flows across national borders more readily. All this means that low wage countries can compete more effectively. And, clearly, it's having an impact on industry in the North-East.

But the answer is not to compete on the basis of low wages. It's to compete on the basis of high value and high skills, which provide good living standards for all workers.

Would the euro help industry in the North-East? It has significant potential benefits for manufacturers, both exporters and importers. But we need to make sure that the economic conditions are right for the whole economy. That's why the Chancellor is conducting his comprehensive Five Tests assessments, which we're committed to completing by next June.

Q. How can EU enlargement be good for us when the new countries that are joining are relatively poor?

A. Enlargement will bring real benefits. It will open up new markets for us to trade with. Independent research estimates that it will boost UK GDP by £1.75bn.

The countries that are joining have some of the fastest growing economies in the continent. And I expect to see a similar boost in our trade with them as happened with previous EU expansions.

For example, the value of UK exports to Spain increased by 23 per cent in 1986; to Sweden by 23 per cent in 1995; and to Finland by 31 per cent in 1995. That means more British jobs and greater British prosperity.

Against these benefits, the costs of enlargement to the UK are small - less than £1 per person.

Q. There is talk about a European army. We have the best army in Europe at the moment so how would this affect us?

A. Actually, no one has ever proposed a European army. It's a rather fanciful myth, which hides what is really going on.

It is a sad truth that we are continuously faced with crises occurring throughout the world, resulting both from war and natural disasters.

It's high time the countries of Europe improved their ability to react when humanitarian, rescue and peacekeeping needs arise.

That's why the 15 EU member states have developed a common approach to dealing with international crises, and putting civilian and military personnel in to deal with them. The basic idea is to get in early, and stop small problems becoming worse.

For the UK, this will mean offering the excellent resources and expertise of our military personnel to EU-led missions. But as ever, decisions on whether to send our troops anywhere - on their own, or as part of a Nato, EU or UN force - are for the British Government.

Q. What is the European Union doing to help Britain's farmers who are worse off than they've been for decades?

A. I'm as concerned as anyone about the plight of so many of the nation's farmers. The challenge is to re-direct the EU's Common Agricultural Policy (CAP), so that it delivers a sustainable future for our farmers and the rural communities of which they form such an important part, while at the same time putting an end to the CAP's negative effect on the developing world.

Q. We are finally making some progress towards a regional assembly for the North-East. How would closer ties with Europe affect it?

A. I expect the regional assemblies to strengthen those links and develop them further. I am a strong supporter of a regional government in the North-East. The United States and every modern nation has regional assemblies, governors and so forth. Why not the North-East?

Q. Europe is a big issue but most people don't seem to be interested. Why do you think that is?

A. Europe affects us all. But we have a coalition of disinterest in the EU, orchestrated by anti-European groups.

As Minister for Europe, I want to make sure that more people get to know about the EU and the benefits that we get from our membership. Benefits like access to the largest single market in the world, bringing in £5.1bn to the local economy here in the North-East, and safeguarding 142,000 local jobs.

Benefits like attracting more foreign investment and cutting prices through greater competition. Benefits like a cleaner environment, and common action to tackle cross border problems like organised crime, drugs and illegal immigration. These are issues everyone should care about.

Q. When is the much-publicised referendum about the euro going to take place?

A. Our policy on the euro is clear. We are in favour of joining, as the potential benefits of a single currency are substantial.

The euro would provide currency stability for UK firms trading with Europe. A manufacturer planning to sell to Europe would know exactly how much his exports would earn and an importer would know exactly how much his raw materials or components will cost. They would have no worries over earnings or costs changing as the pound fluctuated in the financial markets.

This would be a major benefit when already almost half of our trade is with Europe. The euro would also allow a simple comparison of prices across Europe, allowing consumers to get the best possible deals and firms to make the best possible investment decisions.

These benefits would help create the conditions for higher and more productive investment in Britain, and creating more jobs.

But joining the euro must be clearly in our national economic interest. Gordon Brown will complete a comprehensive economic assessment by June next year, at the latest, to see if it is.

The Government will then make a decision on joining the euro. If we recommend joining, it will be put to a vote in Parliament and then to a referendum which could be held within four months of a positive economic assessment.

Q. Is the European Parliament and all its associated bureaucracy not just a colossal waste of time and money?

A. Throughout the ages, people who hate democracy dismiss it as bureaucracy. King Charles I probably called the House of Commons a bureaucratic waste of money!

The European Parliament plays an important role in the European Union - in holding the European Commission to account. In 1999, the Parliament forced the entire Commission to resign. The European Parliament is also, along with the Council of Ministers, the joint budgetary authority of the EU.

And it must give its assent to major international treaties between the EU and third world countries, and for the accession of new member states.

The European Parliament matters, and does an important job. It's important that you use your vote in the next EP elections in 2004, to make sure that this, the only directly elected EU institution, works for you.