North West Development Agency chairman warns Tory plans to axe agencies will prolong recession

CONSERVATIVE plans to axe the Northwest Development Agency would prolong the recession and anger local business leaders, its chairman warned yesterday.

Robert Hough broke his silence on the growing controversy over the future of the NWDA by insisting business was united in opposition to the Tory policy.

His comments came as Ken Clarke, the Conservative business spokesman, confirmed all the regional development agencies (RDAs) would be axed – despite ordering a review of the policy just a few weeks ago.

But Mr Hough found herself at the centre of a political row when Mr Clarke accused him of taking part in a “shameless election gimmick” to promote the NWDA, at taxpayers’ expense.

Along with all other RDA leaders, the chairman attended a London press conference, at which Business Secretary Lord Mandelson described the quangos as “indispensable”.

Until yesterday, the RDA chairmen and chief executives, as independent figureheads for regional development, have been reluctant to wade into the row about their futures.

But Mr Hough said: “There has been a recognition of the value of regional development agencies, that we are achieving.

“Without the RDA, there would be more fragmentation in deciding where to invest and which sectors to support – that is the decision that has to be made.

“All the local authorities in the North-West are very supportive, as is the private sector, which is critical to the recovery because it will be driven by the private sector. I have no doubt that they want us to continue.”

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