Northern devolution meets mixed response

The prospect of devolution for the northern regions of England has generated mixed feelings from the construction industry.

Deputy prime minister John Prescott announced last week that three regions - the North West, North East and Yorkshire & Humber - will hold referendums next year to test the public mood for elected regional assemblies.

Andrew Large, the Federation of Master Builders' director of external affairs, said: "There are mixed feelings from our regional offices. It could be a benefit if it strips out things that are currently dealt with between district councils and government, but it could also be just another tier of government, creating more bureaucracy."

The National Federation of Builders (NFB) said the construction industry in Wales had benefited from the establishment of the Welsh Assembly.

"The administration is much more focused on the regional agenda and industry organisations, such as the NFB, are benefiting from better dialogue and closer consultation with the government," said NFB regional director for the north Marie Ashall.

"Regional assemblies in the north of England could have the same positive impact on the industry," she added. "It has to be done right. If they do go ahead and subsequently fail, it would be a major setback for the regions."

A North West Regional Assembly spokesman said: "An elected regional assembly will ensure that funding supportis provided for regionallydetermined priorities, ratherthan those determined by London-based civil servants and ministers.

"The effect will be to stimulate investment within the region and to help reduce regional disparity in the building sector."