The White Paper on regional government released yesterday took even supporters of a powerful elected assembly for the North-East by surprise. In its 111 pages are proposals to give the new body, likely to be based in Durham City, tax-raising powers and real teeth to influence the economy, transport, health and culture of the regions. Chris Lloyd examines the key points.

An elected assembly will develop a strategic vision for improving the quality of life within the North-East.

Its prime areas of responsibility will be: economic development, skills and employment, housing, sport, culture and tourism, transport, land use and regional planning, environmental protection, waste management, and public health.

These responsibilities will be taken from Westminster rather than from existing councils.

At the moment, many of these responsibilities are looked after by the regional development agency One NorthEast, the Government Office North-East, the existing unelected regional chamber, the Housing Corporation, as well as local councils and quangos such as the Tees Valley Development Company.

It is argued that the assembly will prevent the "duplication, disagreement and delay" that is inherent in such a complicated system.

* The assembly will negotiate directly with the European Union for grants

* It will have between 25 and 35 members, with a leader and a cabinet of six members

* A "civic forum" may be formed to advise the regional assembly. It would be made up of appointed businesspeople, trade unionists and members of voluntary organisations, who will ensure that the assembly's policies are "soundly based and have widespread support"

* The assembly will be elected by proportional representation

* It will have direct control over a budget of £350m given to it by central government. It will also be able to influence the way £500m is spent in the region by central government

* It will cost Band D council tax-payers about 5p per week

* The assembly will be able to increase council tax in the region to fund extra spending but, initially at least, this increase will be tightly controlled

* The assembly is likely to be able to borrow substantial sums of money so that it can finance major projects in the region

The Government will judge whether there is enough interest in a region to hold a referendum.

Before the referendum is held, the Boundary Committee for England will say how unitary authorities will be created in the region. This could mean scrapping Durham and Northumberland county councils, or scrapping the district councils. The public will know of the new shape when they vote in the referendum, and the reforms will only take place if there is a yes vote.

* What do you think about plans for a North-East, or Yorkshire, regional assembly. Write to Hear All Sides, The Northern Echo, Priestgate, Darlington DL1 1NF.