EDUCATION, training and employment issues are top priorities for businesses in the North-East, according to research carried out by the CBI.

More than 90 per cent of firms who responded to a recent survey of business priorities conducted by the regional office of the CBI gave each subject a medium-to-high priority rating.

Steve Rankin, director of the regional office, said: "These are the areas to which businesses attach huge importance and where they expect appropriate government action to sort out the problems of adult illiteracy, the lack of basic skills and employment red tape."

Bottom of the list of priorities for North-East businesses was the creation of an elected regional assembly.

Only six per cent identified an assembly as a high priority, while 54 per cent judged it a low one.

The survey, completed last month, covered nine major policy areas and asked companies to rate their priority for business.

Of those who responded more than three-quarters felt the regional development agency, One NorthEast, had something to offer the region's businesses.

Mr Rankin said that, although there were concerns about the new regional economic strategy being drawn up, the survey did show that they believed the agency had something to offer the region.