IF the North-East is to fulfil its potential and rebalance its economy away from an over-reliance on the public sector - as David Cameron has declared it must - there is a skills gap which must be filled.

We need to direct more young people into engineering so that local companies no longer need to look further afield for the best talent. Youngsters need to be shown the opportunities that exist in our region and be trained to seize them.

It is, therefore, disappointing to have discovered today that a bid to establish a college for would-be engineers close to the new Hitachi train-building plant in Newton Aycliffe has not been given Government approval.

The ingredients for a successful university technical college (UTC) appeared to be in place. We have a dynamic international company offering exciting job opportunities, both directly and in an ever-expanding supply chain. We have a respected educational partner in Sunderland University ready to invest. And we have the private backing of Transport Secretary Patrick McLoughlin.

It is surprising, therefore, that the Department for Education (Dfe) has decided that the bid should be rejected while approving six new UTCs elsewhere in the country. The Government showed its faith in the region when the Hitachi factory came to County Durham so why not back it up with a production line of skills?

The region has no choice but to accept the blow to its ambition and understand what needs to be done to turn the disappointment into good news further down the line. The UTC model is right for Hitachi and it is right for the area. We just have to redouble our efforts to persuade the Dfe that it is a piece of the jigsaw which must not be lost.