North East Small Business not impressed with Prescott's Plans

THE FORUM OF PRIVATE BUSINESS

www.fpb.org

RELEASE DATE: 23/9/04RELEASE TIME: IMMEDIATE


FPB: SMALL BUSINESSES UNIMPRESSED BY 'SHAMBOLIC' NORTH EAST ASSEMBLY CAMPAIGN

The campaign to create an elected North East Assembly has failed to win the support of small firms, a leading small business lobby is saying today.

The Forum of Private Business Chief Executive Nick Goulding said the FPB had found considerable hostility to the proposals among its members in the North East.

"Many of our North East members are unconvinced that what is proposed will create anything other than another layer of toothless and expensive politicians and bureaucracy,' he said. "What is on offer for the North East is no more than a pathetic imitation of devolution, a half-baked dog's din n er. The assembly would have no power over public services and control over less than two per cent of Government expenditure in the region. Moreover small businesses do not want decision making taken away from their local councils, over matters such as planning, and transferred to a remote tin pot assembly."

Mr Goulding said the muddled manner in which the Government had handled the referendums in the North, cancelling polls in the North West and Yorkshire and the Humber at the eleventh hour, had left employers deeply unimpressed.

" Many of FPB's North East members have little confidence in the Government's North East Assembly proposals,' he said. "The referendum campaigns have been an utter shambles across the North. It is perceived that the Government axed the Yorkshire and North West referendums because they feared they would take a kicking at the polls. The sense of chaos has been compounded by both John Prescott and his deputy Nick Raynsford who built up expectation, ahead of the Regional Assemblies Bill, that more powers would be included in it - over areas like transport and Learning and Skills Councils - but when the bill arrived those promises were unfulfilled. Ultimately, the vast majority of small businesses we speak to cannot perceive any benefit to them from creating a North East Assembly. Furthermore there is real concern that the running and setting up costs will exceed Government estimates triggering hikes in council tax bills."

NOTE TO EDITORS

Please find a selection of comments from FPB members in the North East.


Kathy Evans, Vendetta Business Services, Gateshead said:

“I’m against the proposals as they strike me as yet another layer of costly bureaucracy. I’m not persuaded that any real power will actually be devolved to the region and at worst it will just be more people elected similar positions already provided by the existing structure. I worked for a local authority when it moved from Northumberland to Newcastle upon Tyne and the disruption caused and costs involved were a nightmare. I’m not sure that any benefit the area gets will justify the upheaval and expense. "

Katherine, Leghorn Industrial Finishing Specialists, Gateshead said:

“I’m against the proposals as we already have enough politicians and councillors getting paid by rate payers and a regional assembly will probably just add more to the list. I believe that nothing will change other than local rate payers getting even less value for money. We do not want another extra layer of bureaucracy.”

Nigel Bruce, SafeChem, Chester-le-Street said:

“I can’t personally think of one reason why an elected North East assembly would be good for the area. My worst fear is that it will resemble the Scottish Parliament and the Welsh Assembly, a labyrinth of council officials adding layers of bureaucracy to local decision making. I can see no benefit for the local people of the idea. If it gets off the ground there will be a huge amount of money wasted and it will fall on local ratepayers to fund it, even though those who benefit most from it will be those directly employed by the assembly.”

ends



Kieron Hayes, Press Officer FPB

tel: 01565 634709mobile: 07775756308 fax: 0870 2419570 email: kieron.hayes@fpb.org

FPB; the pressure group that's polls apart

website: www.fpb.org

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