Caborn: Working together

Government Gives Power to the Regions

The plans - which centre on the establishment of new regional development agencies - involve the trade unions, local authorities, companies and universities, although there is no new taxpayers money.

The Minister for the Regions Richard Caborn fired the opening shots by holding a business breakfast in London before embarking on a tour of the north west.

He said he had an "enthusiastic and warm" reception from his guests who included the TUC General Secretary John Monks, representatives of local authorities and the Confederation of British Industry.

Making it clear he wanted them to operate locally out of the shadow of Whitehall, Mr Caborn said: "This is a tremendous opportunity to give the regions the voice and power they need for economic prosperity."

But former Conservative Environment Secretary John Gummer MP criticised the consultation exercise saying his government had done the work and focused help where it was needed.

He said the regional development agencies were "old fashioned," and forecast the idea would fail "collapsing under the weight of the bureaucracy placed on top of it".

Under the Tories millions of pounds in grants went to inner city derelict areas, particularly in the north of England and London Docklands, while foreign investors were attracted to unemployment zones in Scotland and Wales.

The decision by South Korean electronics giant L and G to build a factory at Newport, South Wales, resulted in the creation of thousands of new jobs to the area.

But it was attacked by Labour MPs in Opposition who said their English constituencies had been ignored despite high local unemployment.

Mr Caborn pinpointed a "plethora" of agencies for holding up progress and called for a more "sensible delivery mechanism at the local level. These are the best people to do that and we will get much better value for money".

He insisted that the new regional development agencies, the key to Deputy Prime Minister John Prescott's vision of moving power away from Whitehall, would be "dynamic and powerful with resources with which to deliver."