FEARS were growing for the future of the steel industry on Teesside after Corus announced hundreds of job losses.

Corus, formerly British Steel, said it would be axing nearly 1,500 jobs and blamed the high value of the pound for the move.

Trade unions joined Corus in calling for Eddie George, the Governor of the Bank of England, to bring down the value of sterling by lowering interest rates, and for the UK to join the euro.

Corus plans to make 235 scientific, engineering and other white collar workers redundant at its Teesside technology, research and development centre, in Grangetown, Middlesbrough. It is expected the centre will be closed down by October.

The Corus works are in Redcar MP Mo Mowlam's constituency. She promised the Government would set up a task force to retrain and re-employ workers.

Dr Mowlam said: "This is a sad day for many families on Teesside whose jobs rely on Corus. There is some hope that they will be helped by a task force between the various agencies, including the Tees Valley Development Agency and the Employment Agency."

Dr Mowlam stressed again the Government's intention to only join the euro when currency convergence and other economic factors benefited the UK.

This view was condemned by the Manufacturing, Science and Finance Union. Spokesman Richard O'Brien said: "We're very disappointed, even though it could've been worse. But it could signal the demise of steel making in the area and the loss of hundreds of more jobs.

"How many jobs have to be lost before Eddie George realises the pound is over-valued and it is strangling industry?

"It doesn't matter how productive and efficient a firm is, they can't compete with cheaper imports."