THE Government last night dealt a blow to the chance of 7,000 jobs at the North-East's largest port as it announced plans to allow the development of a port on the Thames near London.

Ahead of a meeting today between Teesport campaigners and Ports Minister Stephen Ladyman, the Government said it was minded to approve a major port in the South-East.

Teesport owner PD Ports wants to build a £300m deep-sea container terminal for goods being shipped in from the Far East. It would create up to 7,000 jobs.

PD Ports was campaigning for the Government to devise a national ports strategy, allowing for more balanced expansion between the North and South, before approving any more port expansions.

Along with regional development agency One NorthEast and Redcar MP Vera Baird, PD Ports is today due to meet Dr Ladyman to try to convince him that the ports strategy needs to be completed before any more decisions are made.

Group development director Martyn Pellew said: "We will be asking the minister about his concerns for potential problems of road congestion in the South-East and about the problems of increased unemployment and the need for regeneration in the North-East."

Teesside MPs said the Thamesport decision did not damage the case for expanding Teesport.

Ms Baird said: "Even if Teesport gets its consent last, there will still be a market to play for, if it can then get its work done quickly."

Stockton South MP Dari Taylor said: "We have a fight on our hands, but the package that Teesport is offering is so valuable that I can't believe any government will turn it down."

And Stockton North MP Frank Cook said: "If this increases congestion on the roads in that corner of the country, it will be regretted in 25 years' time."

A Department of Transport spokesman said there was a limit on the port capacity needed, which would be affected by the decision.

He added: "Not everything is going to be approved, but that doesn't rule out any decision on Teesport or on any other port developing proposals for expansion."