IT would be churlish in the extreme to denounce any new Government money that is to be spent in the North-East, and so we enthusiastically welcome The Northern Way which was unveiled yesterday.

Indeed, much of it makes great sense. It is right to invest in renewing the housing stock of Newcastle and Gateshead rather than to build thousands of new homes on virgin green land while the inner cities wither.

It is right that the North-East should work with Yorkshire and the North-West to raise economic standards, and it is very good to see that it is the regional development agencies that are being asked to come up with plans rather than having ideas imposed upon them by Westminster.

We also hear with approval John Prescott's oft-quoted figure about how, if the three northern regions increased their productivity to the English average, the country would be £35bn a year better off. This shows the potential of the place, how it is under-performing and how there is a real north/south divide that has to be addressed.

All well and good and to be applauded.

Now let's put our cynical hat on. We note that the Sustainable Communities Plan was launched last year, that the final reports will not be ready until this summer and guess that action will not begin until next year - a frustratingly long time as the people continue to emigrate to the over-heating south.

We are also suspicious when we are told that the £69m investment in Newcastle and Gateshead will "lever in an estimated £342m of other resources". Do real people ever see levered in money?

Then we note that Newcastle and Gateshead are trumpeting their winning of the money as another example of them working together. We note the encouraged co-operation between the three northern regions. And, when we have city states and super-regions, we wonder where another tier of regional government fits into the equation.

Finally, the dreaded Barnett Formula remains, sending more money to the Scots than to the North-East without anyone understanding why but the sense of perceived unfairness still burning.