ONE NorthEast has announced a £6.5m aid package to help businesses hit by the foot-and-mouth crisis.

The regional development agency said the package would help safeguard jobs, sustain businesses and help communities affected by the disease.

The agency will work closely with the Business Link network to deliver the funding, of which £5.5m has come from the Department of the Environment, Transport and the Regions and £1m from the objective 2, European Regional Development Fund.

Businesses eligible for help must employ a maximum of 50 people, be independently owned, and be able to demonstrate that they have been trading at a loss because of foot-and-mouth.

Mr Miles Middleton, board member of One NorthEast said: "This package confirms our commitment to helping those businesses and organisations affected by this terrible disease.

"These measures will outline the importance of rural industries to the region's economy. It's crucial that we tell the rest of the country the region is once again open for business."

The funding comprises three main streams.

Interest relief grants of up to £7,500 over a 12-month period will pay interest accrued by a business on loans through the small firms' loan guarantee .

Marketing grants of up to £7,000 will fund key activities to enable businesses to regain market share or expand into new markets or products.

Investment support grants of up to to £5,000 will help in the training and re-skilling of employees, together with specialist advice and investment to help diversification.

One NorthEast already supports Northumbria tourist board's strategies to help re-launch and promote the region.

Business can get more information on help available from Business Links for Northumberland (01670 813322); Tyne and Wear (0191 5166767); County Durham (0191 3744000); Tees Valley (01642 806666).

l The Yorkshire dales joint promotions initiative, made up of local authorities in the area, is to target family day visitors and the short break holiday market.

It has pledged to spend £49,000 to attract visitors back to the dales and boost local businesses struggling because of the foot-and-mouth crisis.

A voucher scheme, offering discounts at attractions and in shops, is to be extended and short break package holidays will be promoted by direct mail and through the JPI website www.yorkshiredales.org.

Advertising rates in next year's Yorkshire dales official holiday guide, produced annually by the JPI, will be reduced by 20pc.

Mrs Pam Whittaker, Richmondshire district council tourism officer, said: "Along with agriculture, tourism is the cornerstone of the dales economy. By developing a strategy to give visitors great value, and reduced rates for advertisers in next year's issue of the holiday guide, we hope to attract tourists back to the dales and offer financial relief to the tourist trade which is suffering badly because of the crisis."

The JPI's plans were unveiled on Wednesday, less than a week after the virus began to take hold in the Settle area of North Yorkshire, where seven cases were confirmed between Thursday of last week and Monday