AN industry chief has urged small businesses in the North-East to make a success of an elected regional assembly by becoming more involved.

Karl Watkin, chairman of Northumberland-based D1 Oils, made an impassioned plea to about 400 people, including Deputy Prime Minister John Prescott, at a fringe meeting at the Labour Party conference.

He said: "We are going to be the very first region in England with its own assembly and it has to be outstanding.

"It will be, but only if a new breed of leaders - both business and political -is found, who can demonstrate what the North-East can do if it is given the opportunity to control its direction."

His call followed a survey by the North East Chamber of Commerce, released on the eve of the conference, which showed the majority of North-East businesses opposed any form of regional government.

Mr Watkin said: "With new entrepreneurial leadership, the North-East will deliver what the No campaigners believe is impossible; a regional assembly which costs less; delivers less government, not more; is more effective, not less; and is controlled by none of the usual suspects."

Professor John Tomaney, chairman of the Yes campaign, said: "Over the last two weeks at the Labour and Liberal Democrat Party conferences, we have seen a huge amount of interest in a regional assembly from people throughout the country who are looking at the North-East and thinking how a regional assembly could potentially help their regions.

"There is a real appetite for something new and fresh that will change the way we run politics and make the system work for the North-East for a change."