Yesterday the Government announced that the North-East will be one of the first regions to vote on whether to have an elected assembly. Today, Hartlepool MP and former Cabinet minister Peter Mandelson puts the case for regional devolution.

AT last. The North-East has the chance to vote for our own elected assembly and control over our own future. This is not about simply re-arranging the furniture. Nor is it about a unilateral declaration of independence. In a world where we are more dependent on each other than ever, no one is talking about creating fresh islands of isolation. But to flourish, every part of the world needs a strong identity and the chance to exploit unique strengths and assets. Devolving power provides the means for us, in this region, to achieve these things as others do in the UK and in other countries.

In a globalised economy where investment and jobs move so easily across Europe or the world, effective devolved government is a powerful means of projecting the benefits of setting up and expanding enterprises in a region. Scotland and Wales have enjoyed this for years and they have benefited hugely. And as we have seen in the case of the recent aircraft carrier bids, we need a strong voice and competitive edge in order to attract contracts.

Now supporters of devolution need to go out and make the case to the electorate. Nothing can be taken for granted. Advocates of devolution have persuaded themselves of the arguments in favour of change. But the potential benefits - which, in my opinion, are considerable - must be explained to the rest of the population. Unless we can show how regional government will make the lives of North-East people genuinely better in the long-term, they are unlikely to vote for it.

Central to this case is that a democratically elected, locally rooted regional political authority will be able to lick into shape the economic development strategy, the skills and training programmes and the infrastructure investment vital to generate employment and other opportunities. Nothing could be more important to improving the lives of local people and regenerating our communities. The Government nationally is already doing a lot to overcome unemployment and poverty in the region. But ministers and officials sitting in Whitehall cannot do it all by themselves. The region's communities, businesses and public sector leaders all need to be mobilised. Instead of being handed one-size-fits-all, off-the-peg solutions from London for all our problems, we need to generate our own regionally based strategic vision through direct knowledge of what we are aiming for and what we are capable of delivering.

The proposed regional assembly provides the means of involving every section of opinion and interest in the North-East. The regional development agency, One NorthEast, has pointed the way. Our aim must be an inclusive way of working - bringing in the private and voluntary sectors too. Nobody's energy and contribution can afford to be left out and while normal political processes of elections and accountability are important, they must not be allowed simply to reproduce at regional level the ways of working in local councils.

Electing a regional assembly should not create more bureaucracy and costs, not if the new structures are set up properly. There is currently a barely visible but complex and overlapping tier of regional government consisting of competing strategies, quangos, planning authorities and objectives. For example, in our region alone, there are currently some 60 public bodies involved in delivering around 15 regional programmes or plans which aim to benefit the public.

A streamlined elected assembly would take over much of this, reducing bureaucracy and duplication and creating a regional dynamic and momentum to take us forward. It would enable us to respond better to emergencies, as well. For example, a North-East assembly would have been a better starting point to co-ordinate our regional response to the foot-and-mouth crisis.

The reason that the North-East has been offered a referendum on promoting economic development, streamlining government and increasing accountability in the region is because of the widespread interest in devolution shown amongst the general public. The North-East has a shared sense of identity, values and history, and the way in which across-the-region support rallied to Newcastle-Gateshead's unfortunately unsuccessful Capital of Culture bid shows the potential of working together. But for too long we have lost the habit of doing so.

As MP for Hartlepool, it is particularly important to me that the benefits of devolution extend to the whole North-East and that we do not see another north-south divide opening up across the region. If a new assembly were to be seen by the people of Teesside, Wearside or in the counties of Durham and Northumberland as being set up in Newcastle for the benefit of Newcastle, then I do not believe we can win a referendum. No one wants to exchange domination from London for domination by Newcastle.

A NORTH-EAST assembly must be owned by all of the people - from the Cleveland Hills to the Borders, from the Pennines to the coast. That is why I believe it is important, both for symbolic and practical reasons, that the regional capital should be based in historic Durham. Looking both north and south of the region as well as being easily accessible on the mainline, the regional seat of government in Durham would acknowledge the importance of those of us living outside the major conurbations. And whilst a main chamber might be based in Durham, the work done by the elected committees as well as the civil servants working for the assembly should be linked to towns across the region.

There will be opposition from those who think it can't work in England like it does in Scotland and Wales, and the usual suspects who think it is all a European plot. Don't be deceived. This is a chance for the North-East to take off. Let's all be confident in our region's identity and historic strengths and let's seize our chance to make the North-East a better place.