BUSINESS leaders at the CBI are sceptical about the need for an elected North-west assembly or "parliament."

The Regional Assemblies (Preparations) Bill is going through Westminster and it could result in a regional referendum in Autumn, 2004 to see whether voters want one.

But the Confederation of British Industry claims improved decision-making in the region can be achieved more efficiently by making existing systems work better.

Mr Damian Waters, the CBI's North West Regional Director, said: "The case for an elected North-west regional assembly has not been made.

"That is why the CBI is calling for strong safeguards to prevent a costly talking shop unwanted by most people."

He went on: "Business can see no evidence that an assembly would improve the North-west's economic performance.

"By undermining the good work of the existing Regional Development Agency, it may actually do significant damage.

"If there is real public support here then, of course, business will work with any assembly but the existing plans could allow one when that is not the case."

The CBI is calling on the government to adopt thresholds for voter turnout to ensure elected regional assemblies are only set up where they are genuinely wanted.

It says there should be either a 50 per cent turnout or 30 per cent of the eligible electorate voting in favour.

Mr Waters added: "A North-west assembly must not be set up without the involvement of a substantial proportion of the region's electorate."

"Without that it would not have the legitimacy to function effectively."

The CBI has already withdrawn from the North West Regional Assembly, an unelected body founded in 1997.

A NWRA spokesman hit back by saying that a Mori telephone survey of 1,000 North-west residents had found that 71 per cent wanted regional government once its powers had been explained to them.

He said: "CBI claims that the business community in the region does not support devolution do not stand up to scrutiny.

"In a fully inclusive survey, a majority of the NWRA's economic and social partners, representing more than 1,000,000 employees in the North-west, backed the principle of a directly-elected regional assembly.

"Despite repeated requests over the past year, the CBI have refused to provide evidence of a survey of any of its members to back up claims of business scepticism."

The spokesman said that although the NWRA did not agree with the CBI's "artificial goals and undemocratic demands" it welcomed the fact that the CBI was finally recognising the importance of the regional debate.