BUSINESS leaders have criticised a development agency for overlooking the importance of manufacturing in the future economic wellbeing of the region.

The North-East Chamber of Commerce, which represents 5,000 businesses and 30 per cent of the region's workforce, is the latest group to dismiss development agency One NorthEast's draft regional economic strategy.

Chamber chief executive George Cowcher said too little attention has been given to the manufacturing sector, which is worth nearly £6.5bn and employs more than 140,000 people in the North-East.

He said: "Manufacturing has been tainted by doom-mongers foreseeing its imminent demise, and we are in danger of turning this talk into a self-fulfilling prophesy."

The strategy sets out development priorities for the next ten years and provides a plan for how to spend more than £858m of taxpayers' money over the coming three years.

The document is being revised and a three-month consultation period ends today.

Mr Cowcher said: "There are some exciting ideas in the draft strategy and some initiatives that can really make a difference.

"But, while we look to future opportunities and new industries, we cannot turn our back on one of the most significant sectors of our economy.

"Whilst it is understandable that low-skilled manufacturing may succumb to the relentless pressures from low-cost economies such as China, we must look to the future and find ways to support innovation."

The chamber, which has more than 1,000 manufacturers as members, said One NorthEast's strategy must be all encompassing.

The chamber's concerns echo similar fears by unions and the Engineering Employers' Federation.

One NorthEast chief executive Alan Clarke said: "We acknowledge the vital importance of manufacturing to this region.

"One NorthEast is committed to supporting the sector and is working to help it adapt to future change.

"We have been in open dialogue with the Chamber of Commerce, along with the Confederation of British Industry, Trades Union Congress and other key industry stakeholders, throughout the consultation period and have received their formal response."

The finalised strategy will be submitted to the Department of Trade and Industry for approval in November