WE have become so used to talk of public sector cuts that it is easy to fall into the trap of believing we are through the worst. We are not – there is much worse to come.

Councils, health bodies and other public sector organisations will continue to be faced with driving through radical savings, and job losses will continue to mount.

It is, therefore, imperative that the private sector rises to the challenge and its successes are properly recognised.

The recent additions to the North- East’s business landscape of Sahaviriya Steel Industries and Hitachi have brought great comfort.

But we should not underestimate the continued importance to our region of Nissan, which yesterday confirmed that its Sunderland plant has been chosen to build the next generation of the Qashqai.

It is another huge vote of confidence in the quality of Nissan’s North-East workforce who have repeatedly proved themselves to be world-beaters.

And it is also a testament to the quality of the North-East supply chain, featuring a host of businesses which are a key part of the Nissan success story.

The Prime Minister has rightly identified the need for the North-East economy to be re-balanced because of its over-reliance on the public sector.

It is too much to expect the private sector to fill all the job vacancies left by the Government’s austerity drive – but the North-East has manufacturers it can really be proud of.