THE Government is due to be challenged over the low levels of funding given to the North-East to invest in research and development.

The Confederation of British Industry (CBI) said the amount received by the region was "scandalously low". Of a total of £2.13bn spent in the UK in 2000, the area got £2m, compared to the South-East's £635m.

CBI regional director Steve Rankin said: "After all the talk from civil servants and politicians about encouraging the region's research and development (R and D) base, these figures need some explaining.

"Regional business is keen to explore ways of increasing the level of R and D in the North-East. On the face of it, however, the Government itself somehow doesn't seem to think it has a role to play. The figures are scandalously low and have been like this for several years."

Mr Rankin said that the calculations were based on the number of people engaged directly in Government research in the region.

Challenges facing many CBI members in the North-East were graduate retention and access to a pool of highly qualified people.

The CBI will be talking to the Government agency, One NorthEast, to see what pressure it might exert.

Mr Rankin plans to ask senior officials in the Government Office North East what action they intend to redress the balance.

Neither One NorthEast nor the Government Office North East was available for comment yesterday.