Yorkshire forward: Businesswoman to get £523 a day for overseeing end of development agency

Julie Kenny, founder of a security systems firm, will chair the RDA until its abolition in March 2012 and will be responsible for the winding down or transition of 900 projects worth around 160m this year. She will be paid 52,470 per year for the two-day a week job, or 523 a day.

Ms Kenny, a former litigation lawyer, is a well-known figure in the Yorkshire business community and is currently a board member of Yorkshire Forward and Creative Sheffield, another publicly-funded economic development company.

Business Secretary Vince Cable said: "Julie's impressive experience and know-how will be vital in the ongoing work to wind down the regional development agencies.

"She will play an important role in what is set to be a challenging and complex time for development agencies across the country and her leadership qualities will allow for this process to happen as smoothly as possible."

The coalition is scrapping Labour's RDAs because it blames them for failing to bridge the wealth gap between the North and South despite spending billions of pounds of taxpayers' money. However critics including business group the CBI have attacked the setting up of the replacement local enterprise partnerships as a "shambles".

The so-called Leps are supposed to be joint business and local authority partnerships tasked with stimulating private sector growth, but doubts remains over their funding and powers.

Terry Hodgkinson, the outgoing chairman, said: "The role of chair is gong to be one of leadership in a challenging and rapidly changing environment. We still have a multi-million pound programme to deliver and staff to support through this transition."

Ms Kenny was unavailable for comment.