A North-East elected assembly should only be set up after a substantial number of voters have given a clear mandate, the Confederation of British Industry (CBI) has said.

Deputy Prime Minister John Prescott is expected to give the go-ahead for the region to hold a referendum on setting up a "mini-Parliament".

At present, a clear majority of those turning out would be enough to secure victory for a "yes" campaign.

But the CBI, which has been vocal in its criticism of Mr Prescott's blueprint for regional government, says this is not a convincing mandate.

As legislation that will allow a referendum to be held reached its committee stage in the House of Lords yesterday, the CBI has called for safeguards to ensure an assembly is not set up after a pitifully small turnout.

Instead of a clear majority, it said that an assembly should only be set up only if there is a 50 per cent turnout or 30 per cent of voters say yes in the ballot.

The CBI also wants an end to speculative polls on support for assemblies, and any proposed assembly to be subject to an independent costs audit.

CBI North-East regional director Steve Rankin said the case for an elected regional assembly had not been made.

"That is why the CBI is calling for strong safeguards to prevent a costly talking shop which could be unwanted by most people," he said.

However, campaigners have dismissed the proposals as aimed at encouraging apathy and say that there was no threshold when it was Scotland, Wales and London's turn to vote on devolution.

"We share the concern of the CBI to ensure that elected assemblies are only established in regions where there is clear demand, but the hurdles they propose to place in the regions moving to democracy are misguided," said George Morran, chair of the Campaign for the English Regions.

Mr Prescott's plans foresee an elected assembly having powers in transport, housing, job creation, regeneration, tourism and culture.