SOME of the North-East's most influential business leaders have launched a campaign to derail plans to establish an elected regional assembly.

Sir Tom Cowie and Barclays Bank vice-chairman Sir Richard Pease have joined a powerful coalition of entrepreneurs, academics, public sector workers, farmers and members of the public to put the case against devolution to the North-East.

The move by North-East Says No (Nesno) follows last week's Government announcement that a referendum on regional assembly will be held on November 4.

The Nesno campaign will be led by John Elliott, chairman of watercooler manufacturer Ebac, based in Bishop Auckland, County Durham.

He said: "We need to offer the people in the North-East an alternative to the yes campaign.

"They must hear a balanced argument.

"This is something our supporters on the ground, in communities across the North-East, are keen to address."

He added that Deputy Prime Minister John Prescott's plans for a regional assembly would only create more politicians and higher taxes, while having no extra funding or power over key areas such as transport and the learning and skills bodies.

Mr Elliott said: "We know what we want in the North-East -more jobs. Another organisation is an alternative to action."

Other Nesno members include Colin Gregg, director of Greggs; Christopher Fenwick, former marketing director of Fenwick's department store; Les Bell, founder and former chairman of Bell's Stores; Frank Nicholson, former managing director of Vaux Breweries; Barry Craven, economist at Northumbria University; and John Hamilton, a director of fibreglass company Lamplas, in Consett, County Durham, who is chairman of the Weardale Task Force.

Sir Tom Cowie, the life president of Arriva, said: "As someone who has lived and worked in the North-East for the whole of my life, I understand that the North-East has its issues, but a regional assembly is not the answer.

"It will create no more jobs, just higher council tax and more politicians."

Nesno has the same aims as North-East Against a Regional Assembly, led by metric campaigner Neil Herron.

He said: "I cannot see the point in having two campaigns.

"No doubt we will be having discussions and seeing how we can go forward."

The group will be rivals to Yes4theNorthEast, which was launched last year in favour of a regional assembly.

It counts such people as Sir John Hall among its supporters.

Yes4theNorthEast chairman Professor John Tomaney said: "We welcome the expansion of the no campaign as it will add to the quality of the debate."

Nesno has set up a full-time headquarters in Durham City, the proposed site of the regional assembly.

It will now bid for "designated status" from the Electoral Commission, which will provide £100,000 worth of public money to spend on campaigning before the vote.