THE district auditor is investigating claims that a North-East political group has abused its position.

Anti-home rule campaigners claim that the North-East Assembly (NEA) was using public funds to actively promote a "yes" campaign for regional devolution.

Neil Herron, leader of the group North-East Against a Regional Assembly, said that funding from local councils was being given to the NEA to support what was essentially a "propaganda campaign".

Mr Herron, who is calling for the chairman of the unelected NEA, Councillor Tony Flynn, to resign, said: "It is quite clear that the North-East Assembly is using taxpayers' money to promote the idea of a directly-elected assembly in its literature and on its website.

"The county councils are paying an organisation which promotes an entity which will eventually lead to their demise.

"It's a misuse of public funds which the district auditor will be investigating."

The NEA receives £900,000 a year, most of it from local authorities, and an additional £600,000 from the Government, which it has to scrutinise the regional development agency One NorthEast.

Coun Flynn said: "The North East Assembly is not involved in propaganda or direct campaigning on regional government.

"A 'yes' coalition has been set up for this purpose, which exists independently of the North-East Assembly."

He said the assembly's work was independently audited.

A spokeswoman for the Audit Commission confirmed that a district auditor was investigating Mr Herron's complaint.