UNION officials fear that privatisation plans are being drawn up which could wipe out 700 NHS jobs in the region.

The health union Unison issued a warning of potential mass job losses after it was confirmed that the Government is considering privatising the Prescription Pricing Division (PPD).

About 250 workers at the PPD processing centre in Durham City are already facing the axe because of automation.

But now the Government is looking at possible privatisation plans that could cost hundreds more jobs in Durham and in Newcastle.

The worst scenario for the workforce would be if the Newcastle-based NHS Business Services Authority (BSA), which runs the PPD, decided to contract work out to low-wage countries, such as India.

However, a spokesman for the PPD stressed that no decision had been taken about the future of the North-East workforce and dismissed the union's comments as speculation.

Peter Chapman, regional officer with Unison, said: "We have been told that they will be producing an outline business case by October and, if the decision is to privatise, we have serious concerns.

"It sounds as if anyone who has survived the redundancies is likely to be privatised or find their work being sent overseas," he added.

The PPD, which was known as the Prescription Pricing Authority until it became part of the NHS Business Services Authority in March, calculates and makes payments for amounts due to pharmacists for supplying drugs and appliances prescribed under the NHS.

The body also administers the NHS low income scheme, medical and maternity exemption certificates, pre-payment certificates and tax credit exemptions.

Mr Chapman argued that the PPD is already highly efficient and held in high esteem within the NHS.

"If the work goes overseas we could be looking at 700 jobs going in the North-East alone, plus another 400 in the North-West and 400 in Yorkshire," he added.

Mr Chapman said there were also concerns about confidential patient information being sent across the world.

A spokesman for the PPD said the BSA was looking at ways to improve efficiency and cut costs and proposals would be put to the board in October.

While he could not rule out future privatisation any decision had to protect public sector investment, he added.

Apart from Newcastle and Durham, the PPD also has offices in the North-West, West Yorkshire, South Yorkshire and the Midlands.