UNION leaders have called on the Government to give an extra £45m to One NorthEast to help tackle the North-South divide.

In a 40-page document published today, urging the Chancellor to unveil a £990m package of measures in the Budget to boost industry, the TUC said it rejected old-style subsidies and recommends effective targeted investment.

TUC regional secretary Paul Nowak said last night: "The North-East needs at least an extra £45m so that we can tackle our skills shortage and develop a better basic skills programme.

"One NorthEast will need extra funding in order to face our future with confidence. We have the worst basic skills problem in the country.

"We at the TUC want to see world-class British industry created through effective and targeted investment to tackle our productivity gap."

The submission's economic assessment says the overall public finances have been transformed during the past five years, moving from substantial deficits to large surpluses.

One NorthEast chairman Mike Collier, who endorsed the document, said: "Clearly, we are performing less well that other English regions, whether we are talking about productivity, employment or education standards.

"And while these areas are improving, with momentum gathering pace, we have nonetheless a lot of ground to make up.

"We would welcome any increase in funding, but particularly funds that were devolved to the regions."

The TUC is asking the Chancellor to give an extra £540m to the regions, and an added £40m for jobs schemes in areas of high unemployment.