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Chamber calls on Darling to back campaign
Thu 22nd Jan 2009, 10:24am
THE region's most influential business group has called on Chancellor Alistair Darling to back councils that excel in working with North-East firms to boost the local economy. The North-East Chamber of Commerce launched a campaign in conjunction with The Northern Echo encouraging councils to use public procurement as a springboard to job creation and business growth.
The chamber has made Buy North-East a central plank of its submission to the Treasury ahead of Mr Darling's maiden Budget speech on Wednesday.
In the document, the chamber called for the Government to do more to support public groups that spend money contracting goods and services from the private sector in a way that enhances the local economy, improves society and has environmental benefits. The chamber urged the Chancellor to encourage councils to prioritise economic development over short-term efficiency savings.
Buy North-East was launched in November after the chamber highlighted the fact that publicsector groups in the region spend £3.5bn a year buying goods and services, but only 45 per cent is spent in the region.
The campaign calls for the public sector to increase the proportion spent in the North-East by one per cent a year over the next decade, which would keep an additional £300m in the region and create an estimated 6,000 jobs.
James Ramsbotham, the chamber's chief executive, said: "Public-sector spending is a major part of the economy. It has the potential to create real economic, social and environmental benefits to the North-East. The Government has indicated it is keen to see public sector bodies work more closely with the private sector.
"It now needs to do more to actively encourage that partnership." The chamber used its Budget submission to call for the Government to abandon plans to add 2p to fuel duty. It also said moves to scrap the empty property rate relief would damage the North- East economy because it would deter speculative development.