IN A bid to boost the under-performing economy, Poole, Bournemouth and Dorset are being given new powers to work together.

The area is already a major centre for financial services, marine and aerospace industries and includes Bournemouth University.

But it is thought the area has the potential for more economic development and prosperity and plans are being drawn up to help jobs, transport links and housing.

The three authorities will work together with business and the government to develop a Multi Area Agreement (MAA) to set priorities.

Leader of the Borough of Poole Councillor Brian Leverett said: "We are determined that local authority boundaries will not get in the way of making economic progress and see the MAA as an important way of cementing a new partnership between the public and private sectors."

Leader of Bournemouth Borough Council, Councillor Stephen McLaughlin added: "We are determined to make sure our local economy remains strong so that local people have access to good jobs and housing they can afford."

Leader of Dorset County Council Councillor Angus Campbell commented: "I'm delighted that we have been chosen as a pilot for this work. This is another example of this area taking the lead nationally."

Chairman of Cobham Plc Gordon Page has been invited to chair the MAA, which will also aim to raise skill levels and exploit the benefits of the 2012 Olympics.

Communities secretary Hazel Blears unveiled thirteen sub-regions that are drawing up proposals to boost jobs, transport, investment and housing through greater co-operation today.

Each area is producing their own plans to tackle the key issues in their area rather than follow a prescribed approach by central government.

For example South Yorkshire is prioritising improving housing, whereas Poole, Bournemouth and Dorset will boost skills and capitalise on hosting Olympic sailing competitions.

Almost all proposals have tackling worklessness as a key priority.

Currently councils have only limited powers to collaborate effectively on specific transport issues. The government will explore the scope for extending powers in areas such as regeneration, jobs, skills, housing and environmental protections.

Speaking at the Core Cities Summit in Nottingham Hazel Blears said: "We have seen a major transformation in our city centres since 1997 but we know there are still pockets of deprivation in and around them that must be tackled. By strengthening city-regions and giving all local councils a new duty to promote jobs and tackle worklessness we are giving local leaders' real tools to spread prosperity and improve quality of life for all.

"There is no top-down government imposed approach to MAAs, councils must come forward with their own proposals that recognise the distinctive histories and needs of our modern cities.

"We have set the foundations by freeing them from excessive Whitehall control and are establishing the right framework to help them deliver."