THE region's companies are embracing new technology, Government figures have shown.

The North-East ranks sixth out of 12 regions in the UK in the Department of Trade and Industry survey.

A drive to improve usage of the Internet and IT has lifted the region from bottom of the survey four years ago.

Businesses in the region also rank third out of 12 regions as 88 per cent of companies have a website, and 95 per cent use e-mail.

David Allison, regional development agency One NorthEast's director of business and industry, said: "One NorthEast has the lead for promoting ICT usage in our region, which is a major element in helping us achieve our vision that by 2010, the North-East will be a world-class, effective and competitive global location in which to conduct business.

"This authoritative survey confirms that our region is embracing new technology and communications at an increasing rate, which is of the utmost importance if our firms are to compete nationally and internationally in highly competitive marketplaces."

Norma Foster, general manager of n-e-life.com, a regional portal for businesses, residents and visitors, said: "Following last year's survey, we were concerned about the growing ICT divide between large and small businesses.

"This year, across the UK, there are signs that the trend is reversing and small businesses are catching up."