NORTH-EAST campaigners for elected regional government have welcomed the news that John Prescott will take back the brief for the regions following the resignation of Stephen Byers.
The Cabinet reshuffle will see the Deputy Prime Minister regaining full responsibility for the regions.
Campaigners say they are confident the move will pave the way for a referendum on elected regional government at the earliest possible stage in the North-East.
The Campaign for a North-East Assembly (CNA) expects that legislation will be launched in the Queen's speech in November allowing for a referendum in the region in 2003.
Moves are already well advanced to establish a broad based 'Yes' campaign.
CNA co-ordinator Brian Hall said: "The creation of a department largely focused on regional issues demonstrates that this Government is fully behind moves towards elected regional assemblies.
"We are delighted that Prescott will be heading up this department, as he has been an enthusiastic and consistent figure in the Cabinet pressing for elected regional government.
"Stephen Byers did a good job in launching the White Paper, but John Prescott's appointment and the creation of this new department demonstrates a real commitment to the regions."
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