NORTH-EAST staff face being cast aside amid laxer national security following a passport maker’s Brexit snub, it has been claimed.

The Unite union says it fears De La Rue’s £490m travel permit deal rejection could devastate hundreds of workers and shatter communities.

Gateshead-based De La Rue has confirmed it is preparing to take the Government to court after a Franco-Dutch firm was last month provisionally chosen to deliver a contract to make blue passports for Britain’s EU departure.

De La Rue, which employs hundreds of workers in the Team Valley, has made millions of UK passports having supported the Passport Office for years, and chief executive Martin Sutherland last year told The Northern Echo it was pushing hard to secure the contract to make post-Brexit travel permits.

However, the business, which also operates as an international currency maker, was left stunned in March when Downing Street revealed its preliminary decision to grant the new contract to rival Gemalto, which ministers say will save taxpayers about £120m.

Now, with bosses confirming they have started action that could lead to court proceedings, Unite has joined campaigners in calling for an urgent re-think, saying around 200 jobs face the axe.

However, Louisa Bull, national officer at the union, said the figure could rise markedly unless De La Rue finds work for operations accustomed to making passports over the last decade.

She said: “The contract is not about whether the passports are red or blue, or Brexit.

“It is about defending decent jobs in the UK’s manufacturing industry and in local communities.

“We strongly support De La Rue’s legal challenge on the grounds of jobs and protecting communities.

“There is also the issue of national security; our current passports are technically secure to a high standard and need to remain so, when concerns about national security continue to be a priority.

De La Rue makes a quality product and has held the contract for producing UK passports since 2009 without a hitch.”

Ms Bull also called on Downing Street to look again at the bidding process, saying the union is worried about claims Gemalto undercut its rivals.

She added: “If true, that smacks of unfair competition.”

According to a De La Rue spokeswoman, the business, while accepting its bid was a more expensive option, has doubts over the sustainability of its rival’s quote.

“We are taking the first steps towards initiating appeal proceedings against the provisional decision to award the British passport contract to a part state-owned FrancoDutch company,” said the spokeswoman.

“Based on our knowledge of the market, it’s our view that ours was the highest quality and technically most secure bid.

“We can accept that we weren’t the cheapest, even if our tender represented a significant discount on the current price.

“It has also been suggested that the winning bid was well below our cost price, which causes us to question how sustainable it is.

“In the light of this, we are confident that we remain the best and securest option in the national interest.”

Speaking exclusively to the Echo in November, Mr Sutherland said securing the post-Brexit documents would be key to safeguarding North-East jobs and paving the way for fresh investment in manufacturing equipment.

“We are very hopeful the Home Office will choose a British business and protect jobs in Gateshead,” he said at the time.

“Should we win the contract, we would make quite a significant investment in terms of new equipment to go into Gateshead,” added Mr Sutherland, who has since invited Prime Minister Theresa May and Home Secretary Amber Rudd to the region to explain the Government’s decision.

Downing Street has confirmed the granting of a two-week extension to the bidding process after the Home Office agreed to a request from De La Rue.

However, a spokesman said Gemalto remains the Government’s preferred bidder.