THE door is still open to privatisation of a North-East fire service, it was claimed last night – despite firm Government denials.

Labour MP Tom Blenkinsop staged a Commons debate to urge ministers to clear up confusion about plans to create a ‘public service mutual’ (PSM) in Cleveland.

In March, Communities Secretary Eric Pickles insisted he would never allow private firms to answer 999 calls, as alleged by critics of the Cleveland plan.

And he announced that, to remove any doubt, he was ready to abandon radical changes that might allow private firms to tender, and win, contracts.

But, last night, Mr Blenkinsop, the Middlesbrough South and East Cleveland MP, said fears remained, following a recent meeting between MPs and the Cleveland Fire Authority.

He said: “The categorical statement from the chairman, and other members, was that they would do nothing that would lead to the privatisation of the service.

“However, the fire chief himself said that any contract would be subject to competition, after the initial contract awarded to any mutual expired.

“The Fire Chief said, at that meeting, that the initial contract could be anything from three to nine years.

Earlier this year, The Northern Echo revealed that ministers were trying to revoke 2004 legislation that prevents the creation of privately-run fire brigades.

The Chief Fire Officers' Association led criticism of “the first step towards privatisation” - one that would allow profit-making firms to enter premises and answer emergencies.

Starting in Cleveland, the model was to be quickly extended across the whole of England, giving companies the chance to grab contracts from all fire authorities.

Last night, Mr Blenkinsop made a series of further criticisms of the ‘mutual’ model including that: * The majority of firefighters were fiercely opposed – making a nonsense of early claims that it would be “employee-led”.

* The “lack of transparency” about the changes, from both the Government and the Fire Authority’s senior officers.

* A lack of evidence that it would raise extra revenue – as Cleveland Fire Authority hoped.

Mr Blenkinsop said: “The Brigade created an arms-length company – Cleveland Risk Management Services Community Interest Company – to bid for contracts from the private and public sector.

“It operated at a loss of £38,000 in its first year and has already lost a major TeleCare contract it had secured six months previously.”

Government sources have insisted ministers were advised that scrapping parts of the 2004 Act was the only way to allow the Cleveland mutual to go ahead.

It is that Act that gives only fire officers employed by a public fire authority the emergency powers required to perform the job.

Ministers would now seek to push forward the mutual in a different way - or, if that proved impossible, abandon the shake-up altogether, the source said.