I've been following the debate about regional/sectorial funding with interest. The system as it is certainly seems to be somewhat awry and wrong-headed, as demonstrated by recent notable events in high-volume publication printing.

Polestar received regional assistance to build its new gravure factory in Sheffield, based on a printing contract for work previously produced in Northants. Factories closed as a direct result in other areas of the country: two (Polestar Purnell and Greaves), and one could argue the case for Quebecor World Corby, too.

Meanwhile, Prinovis also gains regional assistance, also for a new gravure factory, in Liverpool. This is based on winning a large contract with News International for work previously printed, at, err, Polestar. By some miracle Polestar's Varnicoat plant has not subsequently been closed, and I'm sure I'm not the only person in the industry who's more than a little surprised about that. But closing factories is of course an expensive business and grants aren't available for it.

More recently, in the commercial web offset printing market the Grapho Media team have set up a new operation in Deeside, complete with backing from the Welsh Assembly. They are operating in a sector that has enormous issues caused by overcapacity and price-cutting across the UK.

Now of course anyone is free to set up a business in a highly-competitive sector, and if they are clever enough to make a success of it, fantastic. But I have to question whether it is appropriate for public money to be spent on assisting such moves.