MORE than 800 jobs could be brought to the North-East with the creation of one National Health Service "super-division".

The NHS is amalgamating up to four of its operations to form a new Business Services Authority (BSA), which will have its headquarters in Newcastle.

The BSA will become the principal organisation responsible for payments and transactions for NHS pharmacists, dentists and pensions.

The move will see the Prescription Pricing Authority (PPA), which employs almost 2,800 people at its Newcastle base, merge with the Dental Practice Board, currently based in Eastbourne, East Sussex, and the NHS Pensions Agency, in Fleetwood, Lancashire.

A decision has not yet been made on whether or not the Counter Fraud and Security Management Services, located in London, will also be included in the move.

The BSA will be formed next April and the decision to locate in the North-East comes after a study last year by Sir Michael Lyons into relocating a substantial number of public sector activities from the South to other parts of the UK.

A spokesman for the PPA said: "The conclusion of the Lyons Review was that public services were overly concentrated in London and the South-East, which caused problems in terms of recruiting and retaining workers.

"It said that public services should be dispersed in a more balanced way across the country.

"Eastbourne, therefore, where the Dental Practice Board is located, is excluded from further development.

"The choice of where to place the BSA was between Fleetwood and Newcastle, and the decision has been taken that the headquarters will be located in Newcastle."

The move could see about 811 jobs created in the city if all existing jobs from each of the operations being merged with the PPA were relocated.

The £140-000-a-year role of chief executive at the BSA was advertised this week.

George Cowcher, chief executive of the North East Chamber of Commerce, said yesterday: "This is a triumph for common sense and fully endorses the calibre of workforce in this region.

"The BSA will provide an important range of services for the NHS from the North-East.

"The move will also offer opportunities for the myriad companies that supply the existing PPA and others that can assist the new groups to carry out their functions."