BRITAIN'S steel industry can survive if Corus, unions and the Government work together to help save it, a former union leader has told Parliament.

In a House of Lords debate on the future of the industry, Lord Bookman, former general secretary of the Iron and Steel Trade Confederation, said it was in the national interest to produce steel.

But Corus has been dogged by a £700m payout to shareholders as well as frequent changes of strategy, he said.

Lord Bookman said the human misery caused by job losses was bad enough, but "costs to social services and the funds that must be allocated for employment, regeneration and training are huge".

"I want to be optimistic, not pessimistic or defeatist, about the future of manufacturing.

"I want the Government to give support in every conceivable way. I want employers and employees, particularly the new team heading Corus, to consult the trade unions properly. By that, I mean that it should happen before decisions are taken, not after.

"With a proactive government, they can sustain and maintain a viable industry, which is vital to the future well-being of our country."