DEPUTY Prime Minister John Prescott rolled into Durham City this week in a coach covered in Great North Vote stickers as he began the Government's campaign to generate interest in regional government.

The cabinet minister arrived in the city - the firm favourite to be the venue for the proposed North-East Regional Assembly - on Monday morning.

He was there to launch the Your Say referendum campaign to prepare the people of the North-East for next year's poll which will ask if they want to be represented by their own elected parliament.

The Conservative North-East MEP Martin Callanan has branded the Your Say campaign as propaganda, which he estimates will cost the taxpayer £2m, but Mr Prescott said: "Here's your chance to vote for an assembly. Vote 'yes' or vote 'no'. If you call information propaganda, I have to live with that."

If the regions agree to assemblies, they will have an annual budget of £350m and could influence how a further £600m is spent. Mr Prescott said this is the money currently spent by Whitehall and unelected quangos. The parliament would be ruled by 25 members, elected by proportional representation.

Mr Prescott launched his campaign at Durham Castle, where he gave the Government's first insight into what a regional parliament would entail.

First he visited Durham Tourist Information Centre, on Millennium Place, with Local and Regional Government Minister Nick Raynsford.

The ministers were shown how Durham's £130m Heart of the City regeneration project has progressed and discussed the Walkergate and Gala Theatre developments with Durham City Council leaders.

The delegation also met travel and tourism students from New College Durham, who had recently completed their training.

Mr Prescott and Mr Raynsford then made their way to Durham Castle, where they answered questions from business leaders and other organisations.

Mr Prescott told the audience: "The message on the ballot paper will be simple: 'Should there be an elected assembly for the North-East region?'

"We believe that spending on issues like jobs and housing should be taken at regional level by an assembly elected by - and accountable to - people in the region."

The Deputy Prime Minister said he personally backed the idea of a regional assembly, but said the whole point of the campaign was to ensure people in the North made their own choice.

He said: "At the end of the day people in the North will decide. I can't make the decision."

* A debate to discuss whether a regional assembly would benefit the region's business community will be held on Tuesday at The Riverside in Chester-le-Street.

It will be chaired by broadcaster and writer Alan Wright.

Speakers will include Ross Forbes, director of the Yes Campaign, and Neil Heron, director of the No Campaign. For details, call (0191) 388 4488.