A LABOUR MP said he was outraged by a major employer's decision to outsource clerical work to India.

Durham MP Gerry Steinberg, who is retiring at the next election, backed Siemens Business Service's bid to run the National Savings and Investments complex, which employs 500 people in the city.

But now the company has announced that up to 50 jobs could be moved to India in a drive, it says, that will help its business grow and reduce the cost to the taxpayer.

"Although the company has offered an assurance that there will be no job losses or site closures as a result, I am outraged at these plans," said Mr Steinberg.

The MP said he backed Siemens, which began its contract in 1999, because it offered the best prospects for National Savings, its customers and employees.

"I certainly did not campaign to safeguard and create jobs in Durham only for Siemens to subsequently transfer National Savings functions overseas.

"In fact, I lobbied against a submission made by a rival competitor, EDS, as this company had openly indicated its intention to transfer jobs from Durham.

"The move is driven purely by commercial greed and has little to do with Siemens' stated desire to improve customer service and productivity.

"The stark reality is that the miniscule wages paid to workers in India will provide increased profits at the expense of the job security of UK employees."