Former Tory Cabinet Minister John Redwood was yesterday roasted by Labour MPs after claiming the North-East had lost a massive car plant investment.

Mr Redwood this week issued a statement commenting on news that Nissan ''will not invest for the new Micra at Sunderland".

He said it was "another body blow for the British motor industry".

But local Houghton and Washington East MP Fraser Kemp pointed out yesterday that Nissan had not yet made a decision on where the new Micra would be built.

And the European Commission had yet to give the go-ahead for the UK Government's offer of £40m of aid for the Micra project at Sunderland.

In a special debate at Westminster on Sunderland's economy, Mr Kemp angrily said that Mr Redwood's statement had caused "pain and anxiety" to tens of thousands of people on Wearside.

He said that the Tory should have checked with Nissan before issuing his statement.

Mr Kemp added: "I have spoken to the managing director of Nissan who has also confirmed that no final decision has been made."

Environment Minister Beverley Hughes also rebuked Mr Redwood for making a soundbite that "as far as we are aware at the moment, has actually no substance".

Mr Redwood later said a corrected draft of his press release said only that the Sunderland plant "may" have lost the Micra contract.

He said: ''Mr Kemp should check his facts. Like him I want to keep the jobs in the North-East."

l The version of Mr Redwood's release received by The Northern Echo yesterday said: ''The news that Nissan will not invest for the new Micra at Sunderland is another body blow for the British motor industry."