Panel to ‘set’ interest rate North-East would prefer

7:24am Tuesday 7th October 2008

Comments (1)   Have your say »

NINE of the North-East’s leading businesspeople will meet tomorrow to debate what the region’s economy needs if it is to see out the global financial crisis.

The panel is being called the region’s Shadow Monetary Policy Committee because it will meet before the Bank of England’s Monetary Policy Committee (MPC) sits in London to set interest rates.

Later this week, the real MPC is expected to cut rates by up to 0.5 per cent – but what rate would best suit the North-East?

To decide, our committee has been pulled together by the North-East Chamber of Commerce (NECC), Recognition Marketing and PR, and The Northern Echo.

Andrew Sugden, of the NECC, said: “This is a groundbreaking initiative and gives a snapshot of business opinion on the crucial interest rate decision that affects so many livelihoods in the North-East.

“We will be inviting a wide cross section of business leaders to take part in this process over the coming months ensuring that all sectors of the economy are represented.

“The debate will be well informed and passionate, as you would expect when people with frontline experience of running significant organisations are asked to give their view on such a critical issue.”

A report of the meeting will feature in The Northern Echo, and a video will capture the debate on our website.

Peter Barron, editor of the Echo, said: “The North-East has often felt distant from Westminster, so this is our chance to say what the region requires and to apply a little pressure.”

Graham Robb, partner in the Darlington firm Recognition, said: “We have been involved in establishing a similar committee in Yorkshire, which has always reached the same decision as the real Bank of England committee.

“The shadow MPC allows debate and understanding on the difficult task that faces the Bank of England each month. We are all fascinated by the outcome of the real monthly vote and instantly consider how it will affect our own income and business.

“Now there is a platform for people to say how they would reach the decision and test their opinions against those whose job it is to get the decision right for us all.”

The inaugural shadow MPC meets at noon today at the NECC’s headquarters, in Durham City.

Shadow Monetary Policy Committee

Ian Basford (Chairman): Managing director of the Tees Valley Engineering Partnership who has 30 years experience across all sectors of the construction industry.

Andrew Sugden: Membership and policy director of the NECC.

Ian Brown: A director of six companies which sell gourmet food and wood-fired boilers. Member of One NorthEast board.

David Bowles: Formerly with Flymo and Northern Defence Industries, now chairman of Entrust, a small business consultancy service.

John Elliott: Founder of Ebac, the Bishop Auckland water cooling business, and campaigner against a regional assembly.

Nigel Mills: Set up a newsagency chain in 1986 which now has a turnover of more than £100m per year.

Keith Proudfoot: Northern region director of the Institute of Chartered Accountants.

Alistair MacColl: Chief executive of Business and Enterprise North-East and formerly director of a publishing firm.

David Coates: Regional managing director of Newsquest North-East and Yorkshire, publishers of The Northern Echo.