A MAJOR review of local government in the North-East was launched yesterday to pave the way for a regional assembly.

The Boundary Committee staged a briefing on Teesside to explain how the year-long process will work.

The review in the North-East could lead to the abolition of Durham County Council and North Yorkshire County Council.

Boundary Committee officials have been asked to examine "two-tier" areas, where there are county councils and district councils, and see if powers can be transferred.

The review will propose introducing one level of local government, which will take on all the functions of the existing councils.

As well as the North-East, two other areas - the North-West and Yorkshire and Humber - have been given the go-ahead by Deputy Prime Minister John Prescott to hold a referendum for regional assemblies.

The referendum will take place next year, but Boundary Committee officials are hoping to have their draft recommendations prepared by December.

Before they can do that, however, they need to hear from people and organisations who have a view on the potential changes.

A spokesman said: "We are keen to use public opinion research to inform our reviews and to ensure that our proposals take public opinion and local preferences into account."