A MULTI-million pound programme to transform the economy of the North-East has been welcomed by business leaders across the region.

The £638m blueprint drawn up by regional development agency One NorthEast will transform the region's economy, creating more than 30,000 jobs.

About £50m has been earmarked for the Tees Valley, to create or safeguard about 2,500 jobs, attract 2,500 new businesses and provide 7,500 new learning opportunities.

The plans for the Tees Valley were drawn up by the Tees Valley Partnership. Its chairman, Alistair Arkley, said the plan was an important step forward.

Mr Arkley praised One NorthEast for having the "courage to put so much of the responsibility for delivering economic regeneration in the hands of the local community itself" and also said the projects included in the plan were all designed to contribute towards the objective set out in the Tees Valley Vision study.

He added: "At the heart of the plan is real optimism for the future of the Tees Valley, which I know is shared by the many different interests represented within the Partnership - and I believe we can promote throughout the whole community."

Welcoming the plans for the Tees Valley, Jeff Fryer, chairman of the North-East Chamber of Commerce's Tees Valley committee, said: "We're delighted that this single programme of funding has been agreed, giving the Tees Valley Partnership the tools and resources to make genuine progress in the area.

Schemes already in the pipeline as part of the regeneration plans, include:

* An Imagineering Centre at the University of Teesside to form part of the centre of excellence for the region's digital technology and digital media activity.

* The establishment of a new Environmental Health and Bio Sciences Centre at Durham Universities Stockton Campus.

* The development of the North-East Technology Park (Netpark) in Sedgefield.

* The Last Mile ICT Infrastructure project will connect the Internet broadband network to over 100 locations throughout County Durham.

* Extending the range of business support services in Tyne and Wear, including web-based business support solutions and the development of markets through supply chain development with clusters in pharmaceuticals/fine chemicals, digital media, offshore engineering, automotives, biosciences and nanotechnology.

* A regional centre for Manufacturing Excellence to help businesses in the region become more competitive in the longer-term and overcome manufacturing problems in the short-term.

* Work on developing a North-East Science and Industry Council. Boasting an influential board, it will help reposition the North-East on the world stage for research and development.

One NorthEast chief executive Mike Collier said: "The new single funding stream allows the Regional Development Agency and sub-regional partnerships more freedom to allocate resources to projects which will address the priorities of the Regional Economic Strategy within specific areas."

Councillor Brian Walker, chairman of the County Durham Economic Partnership Executive Group, said: "I am more than pleased by the news that County Durham's continuing needs have been recognised by One NorthEast.

Councillor Bob Symonds, chairman of the Tyne and Wear Partnership, said: "Single pot funding for Tyne Wear is warmly welcomed. We recognise that fundamental change will take ten to 15 years to achieve, but with the assistance of One NorthEast it is an achievable goal.