THE entire British steel industry will collapse and die unless the nation fights to save Corus's Teesside works, a senior union leader declared on Sunday.

According to Michael Leahy, general secretary of Iron and Steel Trades Confederation, the Anglo-Dutch producer was run by 'muppets' employing the 'economics of the madhouse' who were forcing its North-East operations to compete directly on the international market.

He told a specially convened summit in Redcar: "We are fearful that if they (Corus) have their way, they will shut Scunthorpe, will shut Port Talbot and Llanwern, and we will not have a steel industry.

"For all steel workers, our future depends on Teesside. If Teesside goes, I fear for the whole of the industry."

And he warned Corus that its own future was inextricably linked to steel-making in the region.

"Corus needs Teesside to survive if the company is going to survive into the next decade," he said. "Without Teesside, Corus would be small, vulnerable and not have the flexibility to adapt."

He added: "The truth is, we are being managed by muppets. Their stewardship, if it was not so serious an issue, it would be a joke."

Corus was denounced for opting not to attend the event, organised by the Evening Gazette and attended by about 250 steel workers, politicians, union leaders and business people.

Vera Baird, Redcar MP, said: "That decision not to come today was the worst decision I have ever known."

The summit came about after Corus announced on April 29 it no longer needed Teesside steel for internal use. The statement was described as a death knell for steel making in the region but hope was voiced on Sunday that a solution could be found.

Among a raft of options, it was suggested by Ashok Kumar, Middlesbrough South and East Cleveland MP, that the Government could become involved by supporting regional development agency One NorthEast buying land off Corus.

Dr Kumar said the money from the sale could then be used by Corus to re-invest in steel making on the site to save jobs.

A buyout by a Tees Valley conglomeration was also suggested but largely ruled out because it would be at the mercy of a global market.

It was also highlighted that a successful, highly productive plant such as Teesside would be attractive to foreign steel companies looking for a foothold in the UK.

But a note of caution was raised that interest from LNM, a group run by Indian businessman Lakshmi Mittal - a deal mooted on more than one occasion, would not be good for the workforce.

LNM bought Irish Steel but pulled out two years later after grant aid ran out, leaving workers without redundancy pay.

Alistair Arkley, chairman of Tees Valley Partnership, said the region had a vested interest in ensuring the future of steel making on Teesside: "This is a matter for the North-East of England, it is not just a matter for Teesside."

Bob Shannon, Amicus national officer, called for the new Corus management, headed by incoming chief executive Phillipe Varin, needed to be more open with the unions and its workforce.

Decrying the previous working relationship, he said: "The sort of partnership we have had with Corus is the sort of one that the Titanic had with the iceberg."

Patricia Hewitt, Trade and Industry Secretary, will visit the Redcar steelworks on Friday, June 20, and is expected to seek assurances on the plant's future.