STEEL unions on Teesside have held crucial talks with the Prime Minister Tony Blair on the future of the threatened Teesside steel industry.

Corus announced more than 6,000 job losses last week, but agreed not to start formal consultations until a meeting with unions on Wednesday.

More than 1,000 jobs on Teesside are due to go, with hundreds more supply industry posts under threat.

Mick Mannion, vice-chairman of the multi-union steel committee on Teesside, said he told Sedgefield MP Mr Blair that the unions believed Corus's plans meant certain death for Teesside if there was no rescue package.

Mr Mannion said Mr Blair claimed he had very little influence with Corus, but would move heaven and earth to save the Teesside steel industry. So far, the Government had not been able to put a rescue package to Corus, he said.

Mr Blair was also said to be impressed with the details of the unions' rescue package and pledged full support for them.

Mr Mannion said the package involved keeping the coil plate mill open using cheap electricity at the cheapest times of the day, so that if there was a turn around in the steel industry, the resources were there to boost production.

The Iron and Steel Trade Confederation (ISTC) plans to present its package to Corus on Wednesday.

Meanwhile, local authorities in steel-making areas held a "steel summit" in Wales yesterday to give their support to the steel unions' package.

The 28 local authorities work together as SteelAction and have vowed to support the ISTC's fight to keep jobs open.

SteelAction called on Corus to give full consideration to the ISTC's rescue package.

"We call on Corus to extend their moratorium until they are ready to give their considered response to the ISTC," said SteelAction chairman Roger Stone.

"Like the ISTC, steel local authorities do not accept that what Corus has announced will happen."