AN ambitious development plan by the East of England Development Agency (EEDA) has received a mixed response from politicians and business leaders.

The plan, which proposes 3.2 per cent economic growth for the next ten years, has been described as "unsustainable" and "over-intensive" by members of the East of England Assembly, a voluntary body of representatives of local authorities and business and voluntary sectors.

Eleven regional development agencies were created in 1998 to promote economic development and regeneration and the East of England Development Agency plans to take the region into the top 20 of 77 regions in Europe in terms of gross domestic product (GDP).

Although unemployment is relatively low in the region, there is potential for an increased concentration of technology firms along the M11 corridor.

Essex County Council executive member for the environment Iris Tarry (Conservative) said: "I'm relieved the strategy in its present form has been rejected by the Assembly. Economic growth has to be sustainable but the regional development agency's strategy amazingly goes even further than the Labour government's new regional planning guidance, in attempting to squeeze more development into the region."

Labour members also opposed the plan, but Liberal Democrats and the community 'shareholders' endorsed the plan with reservations about its impact on the environment.

East of England Development Agency media relations manager Vivienne Oxley said: "We can't be held up by party politics in the assembly. Plenty of people have endorsed this plan. We will press on with launching the revised strategy in June, and work with the regional assembly on revisions for the future.

"The East of England is prosperous compared to the rest of the UK (third behind London and the south east) but compared to other European regions we are about halfway down the table. It is a matter of finding a balance between improving the economy and quality of life."

Others feel the ambitious targets are achievable without adversely affecting the environment.

Epping Forest Council's economic development officer Phil Vohmann said: "A 3.2 per cent growth over ten years is a realistic target. We're not really participating in the debate because it's at regional level. The district council has an input into the debate by submitting our comments to the county council."

The Essex Economic Partnership, which represents the county's business community, said the Essex economy is already declining in relation to other eastern counties.

Chief executive Terry Conder said: "We're disappointed that the Regional Assembly failed to endorse the plan.

"It's important for Essex to have a continuous economic strategy covering local, county and regional levels. The Essex Economic Partnership is actively working with local authorities to ensure these strategies are in place."