BRITAIN'S current policy on the European single currency was born out of political expediency rather than economic needs.

The Conservative Party, desperate to mask the divisions in its own ranks over our future role in Europe, concocted a 'wait and see' policy which happily put off any decision until an unspecified future date.

And it was, by and large, adopted by Labour, happy to exploit Tory divisions yet unwilling to come clean itself on the issue. Labour, being 'new', renamed the policy 'prepare and decide' and followed the old Tory path of ducking the issue.

Now it is apparent that 'wait-and-see' and 'prepare and decide' have run their course.

Yesterday's warning from Nissan that future investment in the North-East is at risk because of the strength of the pound echoes similar sentiments expressed by other inward investors.

'Wait-and-see' can no longer be viewed as the sensible option. Rather than a position of strength for the Government, it is a sign of weakness. It signals to investors that this Government, like the last one, is dithering.

How can we expect investors, like Nissan, to give long-term commitments, when they don't know the economic regime to which our country will belong?

It is this long-term uncertainty, rather than shorter-term concerns over the value of sterling, which is making investors wary. Even the current Tory policy of no single currency for the lifetime of the next Parliament is preferable - at least potential investors know the economic conditions in which they will be looking for a return on their money.

The Government has waited long enough. By now it should be in a position to see where Britain's economic interests best lie - either within the single currency zone, or outside it. The Government's body-language suggests it feels we would be better off inside it, so the time has come for Tony Blair to convince the people and address the debate: if the North-East is suffering when interest rates are set for the south of England, how will it prosper when interest rates are set for the south of Italy?

For the sake of future jobs and investment in our region and in our country, the fudge has to come to an end. The time has come for a commitment and a direction.