IT was a year which started so optimistically for the North-East economy. Nissan's decision to build the next Micra at Sunderland safeguarded hundreds of jobs and underlined the world-class credentials of the region's workforce.

But for every step forward, there has been bad news to drag the region back.

Within weeks of Nissan's joyful announcement, the Corus crisis had shattered Teesside, with 1,000 jobs being shed.

Amec raised the spirits with 1,000 jobs announced on Tyneside and up to 750 in Hartlepool.

But then came the problems at Cammell Laird, and yesterday's devastating disclosure that 1,000 jobs are to go at GlaxoSmithKline - 400 of them in Barnard Castle.

The effects will be felt very deeply indeed in the lovely Teesdale town of Barnard Castle, and much further afield.

Glaxo is the heart of Barnard Castle, and although it will still employ more than 1,000 staff, it is a shocking blow.

Many local families are already struggling to cope with the trail of misery left by the foot-and-mouth epidemic and now the pessimism will run deeper.

In truth, it has come as no surprise in Barnard Castle. They knew it was coming and the news was met with an air of resignation.

Competing on the global stage will always leave operations like the Barnard Castle plant vulnerable.

But it is crucial to the North-East's economy, and particularly South Durham's, that the reaction is positive, swift and determined.

Take away tourism, the Deerbolt young offenders' institution, and Smith and Son's traffic sign manufacturers, and Barnard Castle has precious little else to sustain its economy.

It cannot go on relying so heavily on Glaxo and every effort must be made to bring new employers to Teesdale - a location that should take no selling.

There is already talk of a task force to identify ways of supporting the local economy and The Northern Echo is ready to play its part in plotting the future.

As Nissan proved, the flexibility, commitment and skills are here in the North-East - and ways must be found of capitalising on those precious qualities.