MORE than three-quarters of North-west businesses -- 78 per cent -- believe Government red tape is hindering manufacturers.

And 46 per cent say the sector is "doomed."

Royal Bank of Scotland Commercial Services quizzed directors and senior managers of companies with a turnover of up to £100 million.

Research showed that 81 per cent do not believe that Labour has the policies to turn UK manufacturing around from its current weak position.

In addition, 89 per cent think Government policies are a major factor preventing companies from investing and 75 per cent say the Government is not supporting the manufacturing sector.

The European Union also prompted negative feedback -- 72 per cent of those questioned believe that EU legislation will hinder manufacturing further.

Also, 53 per cent do not believe that joining the single currency will improve opportunities for UK manufacturing.

Only 16 per cent of directors think manufacturing is correctly promoted to encourage talented employees and 69 per cent say there is a skills shortage. The majority do not believe that the Government or schools are providing the necessary resources for the sector to recover.

Mr Peter Torrance, Marketing Director of RBS Commercial Services, said: "As we can see, most directors believe that not enough is being done to protect manufacturing from decline in the UK and the overall view is fairly negative."

RBS Commercial Service -- the invoice finance arm of the Royal Bank of Scotland -- was formed recently through a merger of Royal Bank Invoice Finance and Lombard NatWest Commercial Services.