A Labour MP says he is "outraged'' at a major employer's decision to outsource clerical work to India.

Durham member Gerry Steinberg, who is retiring at the next election, backed Siemens Business Service's bid to run the National Savings and Investments (NS & I) complex, which employs 500 people in the city.

But now the firm has announced that up to 50 jobs could be moved to India in a drive, it says, that will help its business grow and "reduce the cost to the taxpayer''.

The company also maintains there will be no actual job losses as the affected staff, involved in tasks such as data inputting, will be redeployed.

But the Public and Commercial Services Union fears the firm, which won a five-year extension to its contract, will axe jobs and that 120 workers in the call centre at Durham are at particular risk.

"Although the company has offered an assurance that there will be no job losses or site closures as a result, I am outraged at these plans,'' said Mr Steinberg.

The MP said he backed Siemens, which began its contract in 1999, because it "offered the best prospects for National Savings, its customers and employees.

"I certainly did not campaign to safeguard and create jobs in Durham only for Siemens to subsequently transfer National Savings functions overseas.

"In fact, I lobbied against a submission made by a rival competitor, EDS, as this company had openly indicated its intention to transfer jobs from Durham.

"The move is driven purely by commercial greed and has little to do with Siemens' stated desire to improve customer service and productivity.

"The stark reality is that the miniscule wages paid to workers in India will provide increased profits at the expense of the job security of UK employees.''

He said that proposals were the "thin end of the wedge'' and that he planned to urge ministers to intervene.