THE Government must intervene in a potential steel mill sale to protect hundreds of North-East jobs, it has been claimed.

Labour MP Frank Roy called on Prime Minister David Cameron to take action over Tata Steel’s plans to sell its loss-making European long products division to the Klesch Group.

The business includes Teesside Beam Mill, at Lackenby, near Redcar, and employs 750 North-East workers.

Billionaire former US steel worker Gary Klesch, a Swiss-based investor specialising in buying troubled companies, last week launched a bid for the mills, sparking fears for the future of the roles.

Speaking at Prime Minister’s Questions, Mr Roy, MP for Motherwell and Wishaw, in Scotland, called on Mr Cameron to intervene and save Tata from potential asset stripping.

He said: “Given the significance of British steel industry to UK economy, and Klesch’s history of asset stripping and dumping companies across Europe, does the Prime Minister agree with me that Klesch is not fit and proper to own such an important part of our economy?”

Mr Roy’s question came a week after North-East MPs held an urgent Parliamentary debate with Business Minister Matthew Hancock.

Labour MPs including Kevan Jones, Alex Cunningham, Tom Blenkinsop and Iain Wright called for Mr Hancock to give job guarantees, telling The Northern Echo the Government must reduce companies’ costs by cutting energy taxes and protect British products by lowering steel imports.

However, Mr Cameron, who referred to Redcar steelmaker SSI UK in his response, said it was too early to make a judgement on Klesch.

He said: “I want to see a successful British steel industry, and we have seen some good steps with what happened at Redcar.

“We should talk to Klesch and judge them by what they say, and by that they do, and give every assistance to try and maintain these important businesses and these important jobs.

“We are already looking at all the flexibilities under things like emissions directives, to see what more we can do.

“We will do everything we can to support this important industry.”

Tata’s long products business also includes special profiles sites in Skinningrove, east Cleveland, and Darlington; a rail consultancy in York; distribution sites in Teesside and Newcastle, and a 4,000-job plant in Scunthorpe.

Speaking previously to The Northern Echo about his offer, Mr Klesch, a former steel mill electrician in Ohio, played down any fears over job losses and site closures.