THE region’s MPs will today urge the Government to pay the wages of Corus steelworkers to keep them from the misery of the dole while rescue efforts continue.

Business Secretary Peter Mandelson will be told that a “wage subsidy” scheme, already introduced in Wales, would save the taxpayer up to £30m – money about to be “thrown away” on unemployment benefits and lost income tax.

The North-East Select Committee will also tell ministers to explore alternative ideas, including buying a stake in Corus, or forcing the company to sell valuable land for other industrial uses.

Dari Taylor, the committee’s chairwoman and Stockton South MP, said: “We will be telling the Government it must do whatever it takes to keep the plant in business.

“The cost implications of unemployment for thousands of workers are hideous, let alone the cost to the people themselves. It’s time for ministers to recognise that this community has gone through enough.”

The call will come when the committee hears evidence, in Redcar, east Cleveland, about the devastating impact of the Corus closure from union and civic leaders, including Middlesbrough Mayor Ray Mallon.

The MPs will throw their weight behind a study, carried out by development group Tees Valley Unlimited, arguing that demand for steel is bouncing back and that Corus is on course for huge profits.

Just as importantly, a twoday a week wage subsidy scheme would cost the taxpayer as little as £10m a year – just a quarter of the expected £40m bill for throwing workers onto the dole.

Furthermore, that £10m to £12m estimated cost is for a 12-month subsidy, yet there is growing confidence that it would be required for far less time than that.

Mrs Taylor said the fivestrong committee would make its plea directly to the Government when it hears evidence from Nick Brown, Minister for the North-East, in the Commons next Tuesday.

She added: “If a wage subsidy is what it takes to keep Corus open, then that’s what the Government has to do. It’s a no-brainer when you look at the figures.

“It would not mean nationalisation, because a sale of the plant is still possible.

“And it would give Corus time before it can take advantage from the rising market that is predicted.”

Hopes rose earlier this week when an 11th-hour deal was struck to save 120 jobs at South Bank Coke Works, part of the Teesside Cast Products (TCP) complex in Redcar, for three years.

Today, Corus is expected to confirm that it will delay the mothballing of the rest of the plant for a month, until the end of February, when the remaining 1,600 workers face redundancy.

According to Tees Valley Unlimited, the World Steel Association projection is for a 12.4 per cent increase in demand for steel in the EU this year, as worldwide demand soars back to 2008 levels.

It concludes: “It should be possible for Corus, and its parent company, Tata Steel, to develop a long-term business plan that secures the future of the Redcar works and gives it time to find alternative markets.”

Arguing for a wage subsidy “in the short-term, to help reduce any losses or help with supporting long-term investment”, the document adds: “More importantly, it would buy time to find a buyer.”

The £48m ProAct scheme has already been introduced in Wales – worth up to £2,000 for every steel and car worker kept off the dole – but ministers have refused to extend it to England. A further stumbling block is that Corus has appeared hostile to the idea in the past, but Mrs Taylor argues its position may change.

However, the committee is on a collision course with Kirby Adams, the company’s chief executive, who said he was “not available” to give evidence next Tuesday.

Mrs Taylor said: “I’m very disappointed because Mr Adams made important statements about the company’s financial performance that we want to question him on.”