THE region's beleaguered manufacturing industry was yesterday told by the Government: "You do have a future."

Industry Minister Jacqui Smith promised help for the ailing manufacturing sector during her visit to the North-East.

In the first four months of this year, more than 1,000 jobs have been axed and hundreds more are now under threat because of overseas competition.

But Ms Smith insisted there was hope for manufacturing and pledged help from Whitehall to save those people who fear their jobs may be at risk.

Ms Smith met workers and bosses at the A&P Tyne yard and at Swan Hunter shipbuilders, in Wallsend, during yesterday's visit to North Tyneside. Last night, she was due to hold talks with business leaders and regional development chiefs on the prospects for the North-East.

The Government figures show manufacturing jobs in the region are being lost at a rate of 20 a week.

The GMB trade union says more than 1,200 jobs have already been shed this year.

More than 420 jobs have been lost at the Samsung electronics plant at Wynyard, near Hartlepool, because of increased competition from eastern Europe; and a further 350 jobs were lost at the Circatex circuit board manufacturers in South Shields, South Tyneside.

Recently, Cleveland Bridge, in Darlington, shed 240 jobs because of a lack of international orders and last summer, the Rothmans cigarette factory closed with the loss of 490 jobs.

About 1,500 jobs are now at risk at the Swan Hunter shipbuilding yard unless a contract to build a hospital ship in 2008 is brought forward by the Government to 2006.

Ms Smith said: "I am absolutely clear that in the North-East, manufacturing is part of our future, not just part of our history.

"We are putting into place, with our various partners, a whole range of ways we can support manufacturing and there are lots of examples of successful manufacturers who have reformed the ways they work to survive."

Industry and the Regions Minister Ms Smith refused to make any real commitment to Swan Hunter. But she promised to look closely at the company's problems to help to avoid it being mothballed.

Meanwhile, figures released yesterday showed the unemployment rate has fallen to an all-time low of five per cent in the region.

Work and Pensions Secretary Andrew Smith said there were now 28.33m people in work in the UK - a rate of 74.9 per cent - the highest figure which has ever been recorded.