THOUSANDS of North-East jobs could be at risk as cuts affect health service quangos.

The Prescriptions Pricing Authority (PPA), in Newcastle, is on the list of NHS support organisations that are to be closed or merged.

The authority, which employs about 3,000 people, has its headquarters on Tyneside, where most of its staff work.

The PPA has outposts in the North-West and the Midlands.

Another NHS organisation on the list is the Harrogate-based Family Health Services Appeals Authority (FHSAA).

It is not known how many jobs may be at risk in Harrogate, but it is believed to be a relatively small organisation.

Health Secretary John Reid has said he wanted to get rid of half the health service quangos in the UK to move £500m to patient care.

More than 5,000 jobs will be cut as part of the plans -a 25 per cent reduction in the number of posts.

In a written Commons statement, Dr Reid set out plans to channel funding into frontline patient care and away from the groups involved in setting standards and regulating services.

He said that by 2007/08, the 42 "arm's-length bodies" would be halved, with a 25 per cent reduction in the 22,000 staff working for them, saving £500m.

The combined annual budget for the quangos is currently more than £2.5bn.

The cash saved by slimming down health bureaucracy could employ 20,000 nurses or build four hospitals.

Dr Reid said: ''I want to see more staff and resources at the front line delivering better patient care across the country. I want to see improved efficiency, reduced bureaucracy and better value for money."

One of the most important roles of the PPA is to publish and distribute 28,000 copies of a 600-page document giving details of drug prices. It is said to have the largest database of its kind in Europe.

The FHSAA is involved in mediating disputes between the public and family doctors.

Another 400 jobs are at risk at the NHS Estates organisation, in Leeds.

Liz Twist, head of health for the North-East branch of the Unison union, said: "Clearly everybody wants to see an NHS that is as effective and efficient as possible, but an important part of that are some of the back-up services, which ensure that standards are maintained.