DEVELOPER The Banks Group will today tell a government inquiry that locally-mined coal has a crucial role to play in future industrial energy needs.

Deputy Prime Minister John Prescott has decided that future planning policy for the North-East should be the subject of a public inquiry.

The five-week study will today look into the region's future energy policy, to decide if the North-East needs to implement stricter regulations around mining.

But Stewart Provan, of The Banks Group, will tell the inquiry that the importance of locally-produced coal must not be underestimated.

He will say that with uncertainty increasing about how and from where our future energy needs will be met, support should be maintained for the mining of indigenous supplies to help "energy-proof" the region.

He said: "The North-East has a whole range of unique energy sources, including renewable energy and a high-quality coal reserve.

"At a time when even international energy sources are uncertain, it is clear that simply discarding coal as an energy source for the region will have a drastic impact on both the North-East economy and energy infrastructure."

Major companies, including Alcan, Sembcorp and Corus, have voiced their support for maintaining a North-East mining industry to help meet companies' energy needs from local, guaranteed supplies.

The regional mining industry is worth about £53m a year and supports more than 1,600 jobs.

Mark Dowdall, divisional director of The Banks Group, which is based in West Cornforth, near Ferryhill, County Durham, said regulations were already extremely strict and there had been very few planning permissions granted for new mines in England and Wales recently.

The Banks Group operates the Delhi surface mine, on the Blagdon Estate, Northumberland, and has submitted plans for a further scheme at Shotton.

The North-East Assembly will publish its findings in the autumn.