WORKERS at troubled steel firm Corus were praised yesterday by Prime Minister Tony Blair as the most highly skilled in Europe, in the face of impending job cuts.

Mr Blair said the Government "very much regrets" suggestions of job losses at the steel company, which is known to be considering shedding hundreds of jobs at its Redcar plant.

Speaking during Commons Question Time, he pledged to do "everything we can as a Government, within proper limits, to help".

In reply to a question from Welsh Labour MP Barry Jones, Mr Blair replied: "He is absolutely right to both raise the concerns of his constituents and to pay tribute to their skill and productivity.

They are among some of the most highly productive and skilled workers anywhere in the country or, indeed, the whole of Europe.

"We therefore very much regret the discussions that are presently going on obviously within the Corus company. We will do everything we can to avoid this situation and we have already made that clear to the company itself."

Some industry analysts believe the number of job losses in Redcar and Wales could reach as high as 7,000.