Newcastle and Gateshead councils have decided to axe the region’s development company, 1NG, after three years.
The move follows a review conducted for the councils and 1NG’s board which highlighted the impact of the abolition of regional development agency One North East, which, along with the two councils, funded the company.
1NG will be wound down next March, and its chief executive, Jim McIntyre, has announced that he will leave the company this autumn to pursue opportunities in the private sector.
The development company was charged with the delivery of key regeneration projects, including the £380m Science Central scheme, and the development of Gateshead Quays and Newcastle’s Ouseburn and East Quayside areas. It also compiled an economic and development strategy for the Newcastle and Gateshead area, known as the 1Plan.
Gateshead council will now lead the delivery of the Gateshead Quays scheme, with landowners Newcastle council and Newcastle University taking forward Science Central.
The councils have appointed city marketing body NewcastleGateshead Initiative to attract inward investment. 1NG chairman Lord Falconer will also head a new business development commission, drawn from the public and private sector.
The councils estimate that the new arrangements will secure efficiency savings of around £1.5m over the next three years by integrating work in joint project teams and reducing overlap and back-office costs.
Mick Henry, leader of Gateshead council, said: “The commitment and tenacity of the whole 1NG team to deliver the goals of the 1Plan, in the teeth of the worst recession for decades, will be of lasting benefit to the economy of NewcastleGateshead.”
Nick Forbes, leader of Newcastle council, said: “Despite significant cuts in our budget, the loss of important partners such as One North East, and continued low growth across the country, Gateshead and Newcastle councils are committed to work together to build our future economy.”
Falconer said: “Through tough economic times, 1NG has played a vital role in helping bring Gateshead and Newcastle even closer together, through a clear economic strategy, and by retaining momentum on vital regeneration projects. I want to thank Jim for his leadership and the board and the team for their contribution over the last three years.”
daniel.cunningham@estatesgazette.com
