ANYONE studying last week’s regional business news would probably conclude I have been suffering from violent mood swings, writes James Ramsbotham, North East Chamber of Commerce (NECC) chief executive.

Each time I was asked to respond to a seriously gloomy report, it was shortly followed with a much more positive development.

The economic data was certainly depressing as Bank of England Governor Sir Mervyn King downgraded his growth forecasts yet again.

Meanwhile, labour market estimates showed youth unemployment nationally rising above one million, with the North-East’s statistics for joblessness particularly bad.

But Business Secretary Vince Cable evidently realised he needed to demonstrate some action and on the same day revealed new incentives for small firms to take on apprentices.

This is something we called for in our recent Bridging the Gap report on skills, and we hope it will enable firms around the region to develop their workforce while giving much-needed opportunities to our young people.

We then had the announcement from Rio Tinto Alcan that it is shutting down its smelter in Northumberland, with obvious implications for its supply chain around the North-East.

The closure of this plant has to send a very loud message to Government that its carbon base price policy is badly misguided. It must be re-thought before it begins to hit more companies, including Teesside’s chemical industries which are vital for both the North-East and the UK.

To date, ministers have dithered and any change will be too late now for Alcan. But we are looking to Chancellor George Osborne’s autumn statement next week to include reforms to this package to help our energy intensive manufacturers.

But perhaps prompted by the combination of dire North-East labour market statistics and the Alcan closure, Mr Osborne got some good news out early by announcing the sale of Northern Rock – and with it Virgin Money’s commitment to its North East headquarters and workforce.

This is a great endorsement of the team that has done an outstanding job to stabilise this important regional business in the face of extremely difficult circumstances.

And stability is what we are all craving after such a week of ups and downs for the North East business community.

It’s a matter of opinion which way the balance had tipped by the end. But Mr Cable and Mr Osborne both have much more to do to help us achieve the sustained growth we need,