NINE North-East firms have yet to receive grants from a Government job creation scheme – more than a year after they were promised the cash.

The companies were all winners in the first round of the flagship Regional Growth Fund (RGF) – in April last year – but have still not passed legal and financial tests called “due diligence”.

The delays mean that only seven of the 16 bids approved for the North-East in round one have been paid, despite repeated Government promises to speed up the process.

The Northern Echo can reveal that the Department for Business ripped up its own pledge to make the payments by the end of March, after realising it would be missed.

Labour warned the RGF was mired in chaos and confusion, at a time when help to spur job creation and economic growth was desperately needed.

Despite the hold-ups, projects such as Nissan’s plan to build two new models in Sunderland have progressed following the pledge of RGF cash. Last month, the Japanese car maker said the promise of £8.2m from the fund was a key reason why its new hatchback will be built in the North-East from 2014, creating about 1,000 jobs.

The nine projects still to achieve due diligence are: 􀁥 Sahaviriya Steel Industries (SSI UK Ltd) – £1.65m, to develop a training programme in Redcar.

􀁥 Durham County Cricket Club – a conference facility, to include a 150-bed hotel, 2,000- seat theatre and skills academy.

􀁥 Nissan – three separate projects described as “significant investment”, with the potential to create more than 1,000 extra jobs.

􀁥 Cleveland Potash – £15m, to build a mineral processing plant at the UK’s only potash mine, at Saltburn.

􀁥 Connor Solutions Ltd – about £1m to expand the electronics firm at Houghton-le- Spring and create about 90 jobs.

􀁥 Duco – to allow the Newcastle firm to create a research facility to develop cables for the offshore oil and gas sectors; 􀁥 Lotte Chemical – £6.7m for a new polyethylene manufacturing plant at Wilton, creating 55 jobs.

􀁥 Turbo Power Systems – a grant to expand the firm’s power electronics division in Gateshead.

􀁥 Cumbrian Foods – the seafood supplier, of Seaham, east Durham, collapsed into administration in December and will not receive the money it was pledged.

Chuka Umunna, Labour’s business spokesman, said: “It is shocking that firms which successfully secured funds have been left for more than a year without receiving their money – and are still waiting.”

The Department for Business acknowledged that March this year was an agreed deadline, but said ministers switched tack to get as many bids as possible signed off.

A spokeswoman said: “Round one projects have taken longer than expected to get their plans drawn up and in place, go through due diligence and then be able to sign final contracts.

“But we are in constant contact with the businesses, helping them move towards being able to sign their final contracts and have in place a strategy for their business that everyone is content with.”

In total, 23 projects in the North-East had passed due diligence and received funding worth a total of £17.8m – while a further seven were up and running even before that funding was handed over.