A SURVEY of nearly 200 North-East companies has indicated a strong reaction against the Government's proposals for regional government.

The North-East Chamber of Commerce canvassed its members across the region to find out about their views on the contents of the recent White Paper and how any Regional Assembly could best involve business.

The main theme which emerged was that local businesses did not consider the current proposals would give an elected assembly the power to make a genuine difference.

Only 28pc believed the proposals would deliver value for money. Well over half considered that their implementation would simply result in another layer of government.

Members did not reject the idea out of hand; 88pc wanted central government to be more accountable to the region and 70pc wanted a different form of regional government, with most of those prepared to supply their input.

Michael Bird, chief executive of the NECC, said: "The survey indicates that business likes the principle of regional devolution but doesn't like the proposed practice. Added value would come only when enough power to make a difference is devolved.

"As they stand, the proposals would give an elected assembly direct control of only about £350m out of £12bn of Government expenditure in the region each year. That hardly scratches the surface."

The chamber's view is that, without direct regional control over essential building blocks for regional economic health, such as learning and skills and the business support network, little would be achieved.

"The Government case is that an assembly will be strong in influence and will be given more powers as it proves itself," added Mr Bird. "We cannot see this working.

"Without more powers it will never be able to prove itself and we will end up with a talking shop and an extra layer of bureaucracy, which is precisely want we don't want.

"Business can support the concept of devolution but the current proposals would do us all a disservice and Government should change them.