In his first major speech since [his second] resignation, Peter Mandelson admitted "somewhat of a conversion" in his strong support for regional government. "Time had come" for the North East to "take its destiny in its own hands".Strangely for a Government spin doctor, Mandy added: "We cannot achieve economic revitalisation in the North East without modernising the means of delivering our economic policies, and this means renewing the region's political institutions,"

The front men pushing for this extra layer of regional government are the Campaign for English Regions (CFER). For some reason the latter are shy about revealing the hand of the EU, which has a very negative effect on many of our industries.

Recently formed, CFER are backed by the little-known Andrew Wainwright Reform Trust, the Joseph Rowntree Reform Trust and the union, UNISON. However, regional studies promoter, the Joseph Rowntree Foundation, reported: "The UK has a weak base of regional structures and strategies... European programmes have put pressure on the UK to improve this situation"

They made it clear that European requirements dominated local ones on the EU programmes - so much for 'boosting local democracy'. (They also claimed national requirements did too, but since 1999 New Labour has put the 'EU dimension' into policy-making at all levels -- which will include nationwide "modernisation of government".)

The hype is unbelievable. "Where there is demand" the Government will introduce elected regional assemblies to match the Regional Development Agencies it set up in 1997. An article (Financial Times, 31.5.01) quotes Derek Bateman, chairman of the appointed North West regional assembly: "People are tired of being governed by unelected officials".

It is always worth remembering the old trick of governments - "If you want to have a "solution", first create a "problem"." Set up something unwanted and undemocratic - and then push people into thinking it can become democratic. The Government spent £3 million of taxpayers' money in selling devolution to a sceptical 1.5 million people in Northern Ireland in 1998. Although achieving a 71% vote in the referendum, its popularity has since plummeted.

Although John Prescott has implied that the regional assembly role is limited (e.g. economic development, transport, planning), Michael Davey, chairman of the North East regional assembly claimed: "We are talking about bringing national government down to a regional level"

Tory spokesman on Regions, Archie Norman claimed that the LibDems wanted up to 3p extra on 'local income tax' to fund regional assemblies. Also that they want to "abolish" county councils, however the official LibDem manifesto still claims a role for county councils, which are their power base.

Abolishing local councils has not taken place in London and would not be needed to meet EU requirements. This is because not all EU members have 'regions'; reviewing the EU talking shop known as the "Committee of the Regions" (COR), Alex Warleigh of North London University notes that the EU is quite happy to involve local government representatives.

Warleigh's book (Committee of the Regions, Kogan Page, 1999, ISBN 0 7494 29941) is worth reading. In spite of being a talking shop, the European Commission supports COR as a potential ally; one of its key roles is to promote the EU to the people.

The European Parliament has long supported COR as it represents part of the move towards a federal Europe, but also to give the EU the image of greater democratic legitimacy. (This is hollow as the local representatives are appointed, have no real accountability and need not hold elected office).

COR was set up after pressure from the German Länder (regions); they seem to want to "pursue power and influence through all available channels". The Commission wants a long term role for it, and it will be interesting to see proposals for it in the imminent 'EU Constitution'. But for now it would be wrong to take COR too seriously, even though it squanders £10m a year.

"Modernising Government" is also an excuse for 'Europeanising' - e.g the then Department of Environment, Transport & the Regions (DETR) says that 3 EU programmes will now influence local & regional planning, ending our "outdated isolation". (DETR website 24.2.98). The Cabinet Office has been leading "modernisation" with a private firm, English Partnerships, who trumpet the praises of EU funding and recruit 'promoters' at £50,000+ a year.

The Government is enthusiastically reorganising its own departments to focus on a regional agenda; although central government departments will continue, "regional government would be dominant." Its proposals are "not just consistent with the transition to regional government, but desirable for it". It does stress that regionalism will be a long term programme.

The Cabinet Office has a group, the Performance & Innovation Unit (PIU) which reported in February 2000 on "modernisation".

Its Reaching Out report, not exactly household reading, was honest that "EU funding" arrangements (i.e. the return of some of our own money) were complicated. It criticised "poor value for money" and admitted that they could either divert UK funds into lower priority areas or even produce conflict with our own initiatives. Its solution, however, seemed to be greater "harmonisation" at the expense of national arrangements.

The Regional Co-ordination Unit (RCU) wants "stronger connections with EU policies and stronger regional presentation of policies". Don't expect the Government, already UK No 1 in terms of advertising spend, to let up.

The Government Office for the East Midlands offers full guidance on how to promote the EU's "generosity" - such as the display of prominent signs that distort the truth.

Other bodies are in on the act too. Oxfordshire County Council (OCC) produce regular propaganda sheets for local authority staff, with claims like: "Schools win eurofunds" and "Oodles of Euros for Oxon"

OCC's European Strategy is full of hype, claiming that it should maximise Oxfordshire's "influence in Europe" and explore partnerships with Central & East European states to obtain funding. That local people's money is needed to co-finance such essentially political activities is played down.

Some RDAs have catchy names like "Yorkshire Forward", "Advantage West Midlands". That they offer local funds will guarantee attention.