TOBACCO giant British American Tobacco (BAT) last night raised the possibility of legal action ahead of a European Union vote expected to seal the fate of hundreds of North-East workers.

MEPs are expected to give approval latere to day to a third reading of a directive which will lead to a ban on the export outside Europe of high tar tobacco products.

The directive, which threatens up to 600 jobs at BAT's Rothman's factory in Darlington, and will have a knock-on effect for thousands more - will then have to be implemented into UK law.

BAT has indicated it could challenge the directive as it claims it is based on "dubious" legal grounds.

The Government can also choose to delay the export ban by two years if it so wishes under the provisions of the directive.

This would mean it would take force from January 2007, not 2005, offering a possible reprieve to workers.

Tom Roberts, of BAT, said they were discussing the possibility of a legal challenge - although this could only happen when the directive became law.

The directive in its entirety will see the marketing and manufacture of cigarettes any higher than 10mg tar stopped within the EU.

Advertising on packets will also have to be changed in a bid to put off would-be smokers from picking up the habit.

Said Mr Roberts: "Eighty per cent of the manufactured product at Darlington goes to 160 countries outside the EU.

"You cannot just switch these sales elsewhere - and the demand will be met by manufacturers outside the EU."

The Amalgamated Electrical and Engineering Union, which represents Rothmans staff, said it would be pressing the new Government for a delay in the export ban

A spokesman said: "This ban could have a devastating effect on our local area should redundancies follow its implementation.