As the North-East positions itself as a hub for electric vehicle research and development, business correspondent Andy Richardson reports from the Cenex national low-carbon vehicle event in Bedfordshire, a major showcase for the sector.

THE Government has denied that the abolition of regional development agency (RDA) One North East could stall the momentum that has helped the region become regarded as a hotbed for the green transport industry.

Following yesterday’s announcement that an additional £24m has been awarded to further develop the UK’s low carbon vehicle capability Transport Secretary Philip Hammond was keen to stress his Government’s long-term commitment to proving its environmental credentials. “I am determined to make this Government the greenest ever and transport will play a key role,” he said.

However, One North East, which is scheduled to be scrapped by the Government next year, has played a leading role in linking regional stakeholders including manufacturers such as Nissan, Smith Electric Vehicles and Elecscoot with local authorities and the region’s universities to put the North-East at the leading edge of the low-carbon transport revolution, creating jobs and attracting investment in the process.

Speaking to The Northern Echo at the Low-Carbon Vehicle Event 2010, the Transport Secretary shrugged off accusations that phasing out the RDAs and failing to have a viable plan to replace them meant the North-East risked losing its place at the vanguard of low-carbon vehicle development.

Mr Hammond said: “I am not concerned that the abolition of the RDAs will undo the work that’s been done to make the UK a leader in low-carbon vehicle emissions. We have a robust plan in place to make sure that doesn’t happen.

“We are clear that technology leadership in relation to low-carbon vehicles must be done from the centre, and that is a function for the Department for Transport, rather than being led at a regional level.

“The Local Enterprise Partnerships, when they are set up, will provide powerful local champions for economic regeneration and development, and we are confident that they will work in a way which is more reflective of the needs of local communities and the economic geography of the UK.”

Under One North East’s stewardship in 51 weeks from March 20 last year, the North- East’s plans to become a world-leading centre for lowcarbon vehicle expertise went from a theory to a dramatic reality.

It was on that date that Nissan and the RDA signed a memorandum of understanding, in the presence of then Business Secretary Lord Mandelson, to explore the possibilities of a zero-emission vehicle programme for the UK, including a feasibility study into the introduction and manufacture of electric vehicles in the region.

On March 18 this year Nissan announced that its Sunderland plant had been awarded production of the Leaf electric car topping off a year which saw the Japanese vehicle manufacturer reveal it was also to site the most advanced electric vehicle battery manufacturing plant in Europe on Wearside.

In addition, the North-East became the UK’s low-carbon economic area for low-carbon vehicles, is building an £8.4m national Skills Academy for Sustainable Manufacturing, developing an open-access test track and is installing more than 1,300 electric vehicle charging points, already attracting more than £200m to the local economy.