THE North-East is failing to make the most of its cultural heritage, according to a national report released today.

The first State of the Historic Environment Report (Sher) says listed buildings, ancient monuments and historic parks and gardens are the region's most under-exploited assets.

The pilot report says the historic environment is under threat from a lack of funds, outdated legislation, inappropriate tax regimes, climate change and a skills crisis.

But the document also contains evidence to back its claims that conservation pays, in social, economic and environmental terms, and that history and heritage have never been so popular.

Sher has been produced by English Heritage in collaboration with the entire heritage sector.

English Heritage regional director Peter Bromley is launching the report today at the Centre for the Children's Book, a national organisation which is to be based in a former Victorian grain warehouse in the Ouseburn Valley, Newcastle.

He said: "The North-East has a wealth of historic assets but many suffer from lack of attention and, crucially, investment. This report sets out in detail what makes up the historic environment and how much it means to people."

He added: "It is often the case that you don't know what you've got until it's gone. Now we know exactly what we've got and what we stand to lose."

Examples of what can be achieved include Sunderland's original Victorian glasshouse, which was destroyed in an air raid in 1941 and seemingly lost forever.

But with a grant of £3,825,000 from the Heritage Lottery Fund, Mowbray Park was restored and the Winter Gardens glasshouse reinstated.

The report also cites revitalised Ragpath Wood in Esh Winning, County Durham, which had become inaccessible and overgrown after being closed to the public for many years, until it was bought by the Woodland Trust with a £17,000 Heritage Lottery Fund grant.

People are invited to submit their views on Sher and to make suggestions on what should be included in future reports by writing to Peter Bromley, regional director, English Heritage, Bessie Surtees House, 41-44, Sandhill, Newcastle upon Tyne NE1 3JF. Responses should be sent by February 28.