GROWING calls have been made for electronics giant Viasystems to repay up to £17m of a Government job creation grant after it announced plans to axe 850 jobs.
Regions Minister and local MP Stephen Byers led calls for the US company to repay the cash if it breaks the terms of its grant to set up in the area.
He was backed by North East Labour MEP Gordon Adam, who criticised the firm for not keeping workers at the firm's Longbenton and South Shields plants informed of developments.
He said: "The UK lags behind the rest of the EU in obliging employers to consult and inform staff of plans affecting them.
"Along with other MEPs who are members of the AEEU, I am looking at the possibility of strengthening EU legislation so that meaningful consultation becomes standard practice in such cases."
He added: "The fact that the company is investing in its Chinese plants and cutting its workforce throughout the US and Europe tells us that this decision is influenced by cheaper labour costs in the Far East."
The DTI has declined to say if the conditions of the grant had been broken. A DTI spokesman added: "We are monitoring the situation very closely and will be making a decision in due course."
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