A THOUSAND or so steel jobs are hanging by a thread on Teesside. A second Government minister in the Mandelson/Hinduja passport controversy is facing pressure to resign.

But, it seems, Tony Blair is keeping his sense of humour.

This week, Stockton South MP Dari Taylor lobbied the Prime Minister over steel giant Corus's threat to cut more than 1,000 jobs from Teesside and shut the coil plate mill at Lakenby. Dari suggested involving other steel magnates in a buy-out of the mill to keep it going.

According to a briefing note from the MP, she was going to mention the name of Lakshni Mittel who is a "seriously large steel producer".

And mention it she did. But her note added that the steel man was also a "close contact" of Foreign Office Minister Keith Vaz, the chap who's being bombarded by the press to quit in the wake of the Hinduja passport affair that has, so far, done for Peter Mandelson.

However, a little bird tells me that the Prime Minister was relaxed to hear of Ms Taylor's suggestion of involving Lakshni Mittel.

"He doesn't want a passport, does he?" quipped Mr Blair.

SO is Peter Mandelson doing what Peter Mandelson was always best at? Namely, reading the public mood better than anyone else and realising that he can wage his personal redemption campaign without crippling the Labour Party?

I refer to this week's Daily Telegraph/Gallup opinion poll showing Labour's lead over the Tories had actually increased by one point over the last few weeks.

That's despite the frantic fall-out, or fall-over if you're a BBC cameraman, from the Hartlepool MP's dramatic resignation from the Cabinet.

Judging from the extensive Mandelson fightback in yesterday's papers, Peter clearly reckons he can restore his good name without wrecking the cherished dream of a Labour second term. That's assuming he puts the second term above his own political neck.

BUT at least Mr Mandelson has kicked one idea into touch, ditching his seat at the last minute before the General Election and whizzing off to Brussels as a European Commissioner.

In an "I'm still standing" performance worthy of Elton John, Peter swept aside speculation on that score during an interview on Radio Cleveland.

Mr Mandelson is doubtless likewise focusing on precisely those things and not briefing the Press on a regular basis. After all, he's got "friends" to do that for him.

STILL, if the Hartlepool MP is not going to vacate his seat just before polling day, it's a fair bet some Labour MPs in the wider region will.

In this week's New Statesman, columnist Paul Routledge told how a Northern MP had been over to Downing Street for a discreet offer of a peerage in return for his safe seat just before the General Election expected on May 3.

That sort of timetable would let Labour HQ in Millbank slot in a candidate of their choice without the messy business of a selection vote by local party members.

Mr Routledge wasn't letting on as to who this mysterious Northern MP was.

But my guess would be sharp-suited ex-Cabinet "Enforcer" Jack Cunningham, MP for Copeland in Cumbria, but a North-East lad through and through who lives in Chester-le-Street.

ONE last thought on the big Mandelson interview on Radio Cleveland yesterday morning.

Was it really just a coincidence that presenter Alan Wright chose to play a certain song after grilling the fallen star of New Labour: "Would I lie to you honey...?"

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