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MP issues warning over RDA plan

Tory plans to strip regional development agencies of certain powers would be a kick in the teeth for businesses in the region, an MP who visited the region warned today.

Rosie Winterton, Minister for Regional Development and Co-ordination, said the diversion of powers from RDAs to Westminster – should the Conservative Party rise to power at the next general election – would be a major blow to the North East’s business community.

Ms Winterton spoke at the launch of the new £125m Finance for Business North East Fund (FBNEF) at Ramside Hall Hotel in Durham.

She described the fund – which is expected to help create 5,000 jobs and help 850 businesses over the next five years – as hugely important to innovation and entrepreneurialism in the North East.

She also attacked plans that have been mooted by the Tories and won words of support from the Liberal Democrats to remove certain powers from RDAs.

As the general election approaches speculation has arisen that David Cameron is keen on a complete overhaul of the current RDA set-up.

Ms Winterton said: “The Conservative idea of abolishing RDAs, which I believe is also supported by the Liberal Democrats, would frankly be a kick in the teeth for businesses in this region.

“No-one has done more than the RDAs to help businesses through this difficult period and in helping them prepare for the recovery.

“You can’t deliver everything from Westminster and Whitehall. If you remove the RDAs, you will have a very South East-centric view come into force and it will be very bad for the North East.”

Meanwhile, Simon Brooks, vice president of the European Investment Bank, was also in Durham today to support the FBNEF launch.

He said he was confident that the fund would achieve its aims by helping to develop the businesses of tomorrow and have a lasting effect long after its initial five-year span.

He also said the result of the general election would not offset the success of the fund, regardless of the result.

“Our confidence in the fund comes from the way the North East has gone about setting it up and the standard of the fund managers,” he said.

This was posted in Bdaily's Members' News section by Ruth Mitchell .