SKILLED workers in larger firms facing redundancy or short-time working are to take part in a football-style loan-scheme to pass on their expertise to smaller businesses.

More than 90 small and medium-sized North-East firms are to benefit from the £1.2m project, which will subsidise the wages of workers.

It aims to give smaller companies and social enterprises access to expert advice, at the same time as helping larger regional companies retain their skilled staff for when the recession ends.

Companies with people who might be at risk of redundancy or on short-time working will be encouraged to release them for an agreed time to work on a secondment with smaller businesses.

The scheme is being part financed by £600,000 from the European Regional Development Fund 2007-13, a figure matched by investment from regional development agency One North East.

One North East’s head of business, enterprise and skills, Tim Pain, said: “Our principal aim is to aid business resilience by providing an accessible and affordable resource of highly skilled, experienced workers to at least 90 organisations.

“They will work with them for a fixed period of time on specific areas of expertise to help them push on through the current economic climate.

“In the longer term, it means we will also be able to retain skilled people in the region by providing them with employment opportunities in host companies when their own employers might be struggling in the short term.”

One North East has procured the North East Enterprise Agencies Ltd (NEEAL) to identify suitable host and donor companies.

Shaun Stuart, chief executive of Wear Valley and Teesdale Enterprise Agency, will lead the work on behalf of NEEAL and work closely with support agencies such as Business Link, the Federation of Small Businesses and the North East Chamber of Commerce.

Mr Stuart said: “It’s an exciting prospect for us to be part of this innovative project and to actively support regional businesses in the current climate.”

For further information about the project, call Mr Stuart on 01388-776688.