HEALTH workers at the North's newest hospital are considering industrial action over the increasing influence of the private sector in the NHS.

Union chiefs in the region have also branded the £97m University of North Durham Hospital a "disaster area".

Health Secretary Alan Milburn has sought to calm fears about the role of private sector in delivering public services. He warned unions against any move to veto the Government's plans after leaders hinted they might withdraw support for the Labour Party.

But Robin Moss, head of health at Unison's Northern Region, warned of major disruption by his union's 30,000 members in the North-East.

He said: "Health members in the North-East are very angry and disappointed that the Government is seeking to give legislative effect to these proposals.

"We have ample evidence in the region of how the use of private sector leads to worse service, rather than better service.

"We receive constant complaints from our members where the private sector is used to clean and provide catering services in hospitals.

"The two privately-built hospitals in Dryburn and Carlisle are disaster areas in terms of design and sloppy building. We expect northern Labour MPs to support our struggle on this issue."

Eric Turner, chairman of North Durham Community Health Council, backed the union's stance. He said teething problems at Durham's new hospital were "symptomatic" of problems with the private sector.

He said: "I have never believed in Private Finance Initiatives (PFIs) like Durham. I think patients should come before profit and I'd like a meeting with bosses at Durham to discuss the future."

Kevin Early, chairman of North Durham Healthcare Trust, said Unison's concerns were legitimate, but added: "I don't like them running down the hospital. It seems to me that it is not good for staff, and even worse for patients, to mount a campaign against an element of PFI."