Jobs fear for region as agencies go

The region is in danger of suffering a brain drain of talent as Yorkshire Forward is scrapped and replaced by several Local Enterprise Partnerships, with up to 100 sought-after experts at the agency possibly being lost to private industry or drawn to public sector jobs in London.

Leeds City Council chief executive Tom Riordan told MPs that Yorkshire will also lose out from the Government's plan for inward investment to be managed centrally from Whitehall – criticised by some as a power-grab by Ministers – which will leave no one fighting specifically for firms to come to the region over other parts of England.

In contrast, development agencies are being maintained in Scotland and Wales leaving them better placed to win foreign investment which might otherwise have been interested in Yorkshire, hampering the region's efforts to recover from the economic crisis.

"Last year we beat the South East for the first time on inward investment, and we've worked really hard to build the expertise and the partnership between business and local government," said Mr Riordan.

"The risk is that will be lost, while Wales, Scotland and London will continue to have a large number of people and experience carrying out those functions."

Mr Riordan, who took up his current job after leaving his post as chief executive of Yorkshire Forward this summer, was giving evidence to the Commons Business, Innovation and Skills Select Committee yesterday on behalf of the Leeds City Region, a group of 11 councils which is hoping to become one of the first Local Enterprise Partnerships.

He warned that experts at Yorkshire Forward such as those behind the region's drive to become a world-leader in clean coal technology could be lost to the region if the new partnerships are not given some funding by the Government. Ministers have been ominously quiet about funding.

He said the Government will also have to resolve concerns over employees' pension liabilities when the regional development agency is abolished if experts are to be taken on by new partnerships or groups of businesses in the region and their skills preserved.

Mr Riordan also gave his backing to a proposal by businesses to form a small partnership – given the working title of the Yorkshire Enterprise Partnership – to work across the region on certain issues, such as low carbon technology.

Meanwhile Business Minister Mark Prisk used a speech yesterday to try to ease fears over the changes, insisting he was conscious of the concerns about managing inward investment centrally.

"In future, some of the RDAs' functions will be led by central Government, in activities where business needs certainty," he said. "By leading from the centre will be able to provide the consistency in these vital activities which business needs.

"And we will be able to maximise the value from tighter budgets over this Parliament.

"But I am aware of the danger this could become London-centric. That is not the aim.

"We will provide national leadership in these fields, but we recognise that we will often need to do so working with local partners. After all, a strong national economic framework needs strong local roots."

'Come clean on elected mayors' plea

The Government was under pressure last night to come clean on whether it will impose elected mayors on four Yorkshire cities before voters decide whether they want them.

Labour demanded answers after Local Government Minister Bob Neill revealed the coalition plans to install council leaders as mayors and then let voters say whether they want to stick with the system in a "confirmatory referendum".

The move would mark a U-turn for the Tories, who had promised voters in Leeds, Sheffield, Wakefield and Bradford a referendum before changing the system.