AN expert on the North-East economy has warned of the risks of relying too heavily on foreign companies to provide investment in the region.

Professor Ray Hudson, of Durham University, made his comments following a speech by Prime Minister Tony Blair.

Mr Blair, in Mexico, cited his Sedgefield constituency as an excellent example of the benefits of globalisation.

He said that after coal mines had closed in the 1980s, investment by foreign companies had brought jobs to the region.

But Prof Hudson said foreign companies had left the region, Japanese firm Sanyo announcing 300 job losses in Newton Aycliffe only last month.

He described such operations as "global outposts".

"They are at the end of corporate decision-making chains and when cutbacks come they are the first to go," he said.