Houghton and Washington East MP Fraser Kemp told the Commons the city was an example to the whole country.

"The area I represent has learned a number of lessons that it is right I share with the House," said Mr Kemp.

"It has learned and applied those lessons despite the dramatic loss of its core industries. It is hard to comprehend the devastating impact the loss of those industries had, not just economically but socially, in a very short space of time.

"It is against that tough background that the city has made significant progress."

Mr Kemp praised the work of the city council in attracting new industries to Wearside to replace the mines and shipyards.

"It is to the eternal credit of the city council, past and present, that it recognised early that our core industries were not just declining, but disappearing," he said.

"Early intervention through an economic strategy was the best and most secure way to prevent our city from becoming an industrial desert.

"Against a difficult backdrop, the council had the guts and determination to sell the city and ensure it punched above its weight."

Employment relations minister Pat McFadden said the city's success had not gone unnoticed.

"It is most encouraging to see that developments in recent years have meant Sunderland has moved into new and exciting areas, functioning in a global context and competing internationally," he said.

"The story of Sunderland in recent decades would not be complete without mention of the role of Nissan, which has been critical to the local economy for more than two decades.

"Recent announcements by Nissan have provided encouraging signs of continued growth. The first of these, of course, is the new model that is to be produced. The second is the success of the Qashqai."