DEPUTY Prime Minister John Prescott returned to the North-East yesterday, the scene of last year's resounding referendum defeat, and launched what may be Labour's last major gathering before an election with a boisterous and defiant speech.

His main message was a warning against complacency, but he departed from his prepared script to say he still believed that, despite last year's defeat, which was disappointing for him, the North-East would one day have a directly elected assembly.

He said: "I was up here in the North-East for the referendum. I will move on quickly and say no more.

"But there is still a regional dimension to all we do. The existing North-East regional assembly will still lead on housing, planning, transport, spatial strategy and economic development."

This sounded as if Mr Prescott was deliberately courting controversy because, especially in County Durham, there are the first signs of a campaign against the current unelected assembly, particularly as its recent Regional Spatial Strategy has proved unpopular outside the big cities of Tyneside.

Mr Prescott had worked for a directly elected assembly for more than 25 years, and led last year's referendum campaign, which ended in a 78 per cent to 22 per cent No vote.

"I hear what was said," he continued, "and as a democrat, I like to believe in the electorate. But the time will come for a Yes to that in the future, I am sure."

The rest of Mr Prescott's speech was passionately delivered in a hoarse voice, with plenty of jokes thrown in.

"Things did get better," he maintained. "The song was right, and I am proud to say that; better for jobs, better for pensioners, better for education, better for health, better for the environment.

"And better for the fox. He gained by it as well. He got more green belt under Labour, a cleaner environment under Labour and, under our right to roam, he got a better class of walker under Labour."

With Labour enjoying large leads in most polls, party strategists are concerned many supporters will stay at home or cast a protest vote for the Liberal Democrats or anti-war party Respect.

Mr Prescott urged activists to use the "fear factor" to get supporters to the polling stations, by warning them of the danger that a Conservative government might get in by default. He reminded delegates at the party's spring conference in Gateshead of the 1970 election, when Harold Wilson saw a 16-point lead in the polls crumble in the last few weeks of campaigning before his defeat at the hands of Edward Heath's Tories.

He said: "We need to meet the voters, talk to them, let them know what's at stake.

"We need to get that fear factor going. This is an election as much about turnout as anything else. If people abstain in the belief that Labour will win, they could wake up to a Tory government."