THE construction industry has urged government and local decision-makers to do more to ensure the North-East does not lose out in the race to secure vital infrastructure investment.

The government has published details of projects totalling £250bn over the next decade, but only £2.8bn of this investment has been earmarked for local infrastructure schemes in this region.

Projects such as the Olympic Games, Crossrail, Thameslink and the M25 widening have led to a boom-time for firms in the South.

While the North-East will benefit from some national-level schemes, the value of projects in this region accounts for just 4 per cent of spending on programmes which are located in a specific region.

Research by industry body UKCG (UK Construction Group) showed that investing in major construction projects boosts economic growth and supports job creation. And as a labour intensive industry, construction creates jobs - vital at a time when unemployment in the North-East is among the highest in the country.

A recent UKCG report on the value of construction to local economies found: *Construction contributes 6.2bn to the North East economy, accounting for 7.3 per cent of the region's GDP (UK average is 6.4 per cent).

*The sector supports nearly 155,000 full-time equivalent jobs - which is 7.2 per cent of the local workforce.

*90p in every 1 spent on construction in the North East is retained within the region, stimulating local growth and jobs.

UKCG director Stephen Ratcliffe said: "The construction sector is uniquely placed to support economic growth and social change. Investing in local transport, energy and water networks will create jobs and re-start the local economy.

"Programmes such as planned improvements to electricity distribution networks are welcome, but unless urgent action is taken the North-East is in danger of falling behind when it comes to securing essential infrastructure investment."