SOME years ago the leaders of Manchester and Liverpool councils signed a friendship agreement to end years of petty squabbling.

I always thought it was more an armistice than a final peace treaty.

Part of the problem is that Liverpool hasn't completely shaken-off its inferiority complex, despite last year's very successful European Capital of Culture.

The latest manifestation of this came from a leading Liverpool councillor complaining this week about government departments backing a study into Manchester becoming the Whitehall of the north west.

Five thousand civil servants could be located on a disused rail site at Mayfield, near Piccadilly Station.

At least the Star and Garter pub is nearby and would sustain the Sir Humphries in their new setting.

Another point well made by Manchester's Lib Dem group leader Coun Simon Ashley is that, even if approved, it could well be 2014 before any jobs are devolved.

The essence of the complaint from Liverpool's deputy council leader Flo Clucas was that the government was going for an expensive option in choosing Manchester.

The implication being that sites on Merseyside are cheaper, which is probably true. But Coun Clucas should heed the words of Frank McKenna, an increasingly influential business voice in the north west.

The lobbyist loves Liverpool but admires Manchester for getting its act together faster than Merseyside.

Evidence of that came in the Chancellor's Budget when the Manchester City Region was given greater devolution powers than Liverpool.

Communities Secretary and Salford MP Hazel Blears was immediately offering herself to media outlets to hail the good news. But what will it actually mean for business in Greater Manchester?

Time and again we've seen these public organisations created amid a great fanfare, only for them to deliver very little on the ground that the market couldn't.

The idea is that with a supportive policy environment, the government and regional agencies will back six key sectors which the City Region can rely on to be the employment growth points.

They are Manchester Airport, financial services, life science industries, media, digital communications and (thank goodness) manufacturing.

A call has gone out to businesses and employers to support the strategy. I'm sure they will do their best but we have to look at the wider picture.

This enhanced city region is being launched against the worst economic background since the 1930s.

Shrivelling order books and concerns about credit insurance are the daily concerns of business - and it's certain that there will be huge pressure on the budgets of many of the public bodies that are meant to make this sub-regional strategy work.

It is to the great credit of Greater Manchester's councils, and an example to Liverpool, that they have worked together to gain the government's confidence. It is also wise to have a strategy in place so we are ready to back new indus- tries when growth returns.

Let's hope this, and any successor government, sustains its commitment to Manchester and doesn't introduce a whole bunch of contradictory policies because one Sir Humphrey won't talk to another.