For decades, North-East talent sought film fame in London and Hollywood. Today, the region has its own thriving industry. John Dean reports.

IT was an event that illustrated not only the cultural importance of film industry, but also its growing economic benefits. At the end of last year, more than £250,000 was spent in the region thanks to the third Northern Lights Film Festival, which held screenings, workshops and competitions.

The festival took place at several sites across the North-East in November and drew hundreds of visitors from across Northern Europe, all of them spending money in hotels, shops, bars and restaurants.

The AV Festival, featuring digital music and moving images, will attract hundreds of national and international delegates to Newcastle, Gateshead and Middlesbrough in March, and many are hoping their arrival will mean another financial windfall for the region.

The people behind the festivals are keen to underline the contribution the moving image makes to the North-East economy.

Northern Lights Festival manager Stephanie Little, of the Tyneside Cinema, in Newcastle, one of the key organisations promoting the event, said: "Our estimate shows Northern Lights will have generated upwards of £250,000. Some of that cash was spent by delegates on everything from hotel rooms to eating out and, of course, in our region's fantastic shopping centres."

She said the figures would be discussed by the festival's financial backers.

She said: "We'll be making the case that Northern Lights is not only a great cultural event but an important economic one too.

"If you add in the figures for AV, we believe the two moving image festivals will bring more than £400,000 into the region."

Festival director Patrick Collerton, an award-winning film-maker, said: "Film Festivals aren't just about showing and making films. We bring hundreds of people into the area from all over Europe and over the last few years, we have employed practically every film professional in the region."

The region's film industry has been developing in recent years with an increasing number of talented film makers choosing to base themselves in the North-East, rather than heading for the bright lights of London.

As a result, numerous small independent companies have sprung up, bringing together directors, producers, writers and actors, production staff and lighting and sound experts.

Among those supporting the fledgling industry is regional development agency One NorthEast, which provides funding for Northern Film and Media, the agency that helps companies make films.

Recent research conducted for Northern Film and Media by consultancy Pembridge Partners showed the potential of the sector.

The consultant discovered that:

* Moving image businesses contribute £121m a year to the North-East economy, representing 0.8 per cent of the UK's revenue generation in the sector;

* 1.3 per cent of the national moving image-related workforce is based in the region. That amounts to 1,730 staff, significantly less than would be expected based on the North-East's population;

* The two regional broadcasters, Tyne Tees and BBC North, and the commercial cinema chains dominate the sector, employing 38 per cent of the workforce;

* The moving image sector in the region comprises 165 enterprises, most of them small or medium-sized. The majority are independent business with an average of six employees - only half of them full-time;

* If the North-East raised its productivity to the national average for the moving image sector, revenues in the region would rise to £628m - which amounts to an extra £507m.

Ailsa Anderson, culture manager at One NorthEast, said: "The film and television production sector is very important to the region.

"It is a significant contributor to the regional economy with the potential for more growth.

"That is why we are working closely with Northern Film and Media and have supported a £1.3m investment in the industry through them.

"The Northern Way Growth Strategy is also examining ways of using the North of England - including the North East - as the location for more film and TV productions."

One NorthEast director of regeneration and tourism John Holmes said: "The Northern Lights Film Festival is a great example of the major role cultural events play in attracting people and investment to the region, as well as raising our profile on the international stage."