THE MP taking part in today's meeting with senior European competition officials says he remains hopeful of winning £40m of aid to bring the new Micra to the North-East.

The money could mean the difference between the Nissan Micra being built at the company's plant at Sunderland, or at a French factory.

An estimated 1,300 jobs at the plant are at stake along with thousands in component factories around the region.

Houghton and Washington East Labour MP Fraser Kemp is in Brussels to press the EC's head of state aid Maria Rehbinder to accept the case for helping the plant.

Prime Minister Tony Blair is taking a keen interest in the issue and has reportedly twice telephoned Nissan president Carlos Ghosn to put Sunderland's case.

Mr Kemp said: "I will be stressing the importance of the bid, not just for Washington, but for the North-East, and arguing that it falls within EC rules on competition and aid.

"It is vital that the Micra is built on Wearside. The £40m doesn't guarantee the Micra contract. However, Mr Ghosn has said he regards it as an important factor.

"Once the European Competition Commission has made its decision - expected later this week - Nissan will then decide whether to bring the new Micra to Wearside.

"It is a very strong bid, and in my view, and in the view of the Department of Trade and Industry and others, it does fall within the terms of European rules and competition laws.

"For those reasons I am hopeful that the commission will agree to it.''

The money is being offered by the Government, but Brussels' approval is needed first.

Although the factory, which employs 5,000, is Europe's most productive car plant, Nissan is worried that the strong pound and weak Euro are hitting profits.

The Flins plant in France, run by Nissan's partner Renault, could get the contract, although workers say they have enough work already.

There are fears that loss of the contract will spell the "beginning of the end'' for Sunderland, possibly leading to its eventual closure - and job losses among suppliers.

Unemployment in the Sunderland area is 8.4 per cent - the national average is five per cent - and the plant offers well paid work