TRY telling the people of Spennymoor that our country is weathering the storm of economic downturn sweeping the world.

In the past three years the industrial heart of the town has been ripped out. Rothmans and Electrolux closed factories, between them employing more than 1,000 people.

And now the Black&Decker plant is under threat.

Before today the case was strong for Spennymoor to be given special support to rebuild its economy and create new employment opportunities for its community.

The doubts over the future of Black&Decker make it imperative the Government takes immediate action to prevent the town becoming a manufacturing wasteland, and to bolster the weakening manufacturing base in our region.

But the doubts also raise wider issues of economic policy.

They call into question the wisdom of government departments and regional development agencies in putting so much energy into attracting overseas investors.

While it is true that Black&Decker, an American firm, has contributed greatly to Spennymoor and the North-East for several decades, it will not be the first overseas investor to turn its back on the region in recent times.

It is undoubtedly true that overseas firms find it easier than indigenous businesses to sever their ties with local communities.

Would it not be a better use of public money to put more resources to encourage the growth of local businesses, and fewer resources to lure here-today gone-tomorrow businesses?

The uncertainty also highlights the need to resolve the interminable debate over the euro.

International businesses like Black&Decker plan for the long-term, and take strategic decisions accordingly.

Not knowing whether Britain will join the single currency creates long-term uncertainty.

The resolve of the Czech Republic to embrace Europe and its currency will impress Black&Decker and may have sealed the fate of its Spennymoor site.

Whether we join the euro or not is the key issue for our economy. What is crucial is that we decide one way or the other, and decide quickly.

The dithering has to end.