A GOVERNMENT minister last night admitted the skills gap in the North-East was "huge".

The ministers responsible for skills and enterprise were taking part in a video conference with North-East businesses on key issues facing the region.

Skills Minister Phil Hope and Barry Gardiner, Parliamentary Under Secretary of State for Competitiveness, took part in the debate, organised by the North East Chamber of Commerce.

Catherine Kearney, manager of the University of Teesside's Centre for Enterprise, said: "A key element of the regional skills action plan in the North-East is to increase employer demand for, and investment in, skills. What are the Government's commitments to support this goal?"

Mr Hope said: "The skills gap is huge and the only way we can meet the skills gap is if government, employers and individuals combine together to invest in skilling-up the future workforce.

"The skills agenda is absolutely essential to maintaining the economic prosperity we have seen to date."

Richard Brine, Corus commercial manager, asked Mr Gardner: "How is Government policy likely to change in response to the threat to UK manufacturing posed by the rise of China and India?"

Mr Gardiner said: "For 2,000 years, China produced 25 per cent of the world's gross domestic product (GDP). For the past 200 years, it has produced approximately three per cent.

"What is happening now is we are getting back to the status quo. With a quarter of the world's population, you would expect it to produce a quarter of the world's GDP."

He pointed to the number of people graduating from universities in China and India.

Mr Gardiner said: "Let's not think that what we are needing to be focusing on is simply low wage, low-skilled jobs in manufacturing. We are talking about the whole shooting match. We are going to have to compete across the board."