STEEL unions have launched a campaign for a yes vote in any referendum on the European single currency as the linchpin for saving the beleaguered industry.

At a conference of more than 100 delegates from the Iron and Steel Trade Confederation (ISTC) at Newcastle Airport, the union decided to approach businesses throughout the North-East, and community groups, explaining why the UK would need a positive vote.

In the run-up to the general election, Prime Minister Tony Blair promised that the Government would make a judgement on whether there should be a national referendum on the euro within the next two years.

But union leaders said that, based on what most people know about the single currency at the moment, the result would come back as a resounding no.

They say that joining the euro is the only way to save the country's manufacturing industry, especially the steel industry.

Four months ago, steel company Corus announced that it would be shedding 6,000 jobs nationwide, including 1,100 on Teesside.

The company said one of the main reasons for the massive restructuring programme was because of the effect of having a weak euro against a strong pound.

Eddie Lynch, assistant general secretary for the ISTC, told the conference: "If we were on a level pegging on exchange rates by being in the euro, we would never shut a single plant."

Earlier this week, the last steel was rolled at the Lackenby coil plate mill, signalling an end to Teesside's 160-year-old complete steel industry.

The mill lost out because of European competitors, who could not produce the steel cheaper, but benefited because of export trade in relation to the euro.