SCUNTHORPE MP Elliot Morley is claiming the town's steelworks faces the loss of up to 500 office and administration jobs.

However, Corus chiefs are still declining to make any official announcement.

In a statement released to the Scunthorpe Telegraph, Mr Morley described news of major job losses in the Corus Long Products Division as a major setback in the fight to protect jobs and ride out the global downturn in steel production

Mr Morley said: "I have spoken to the works director Sean Lyons and discussed the timescale and implications.

"I also pressed very hard that there should be every effort to avoid compulsory redundancies.

"I know that Mr Lyons has been working very hard with his management team and the unions to protect jobs and I know the pressures there are on the business at the moment.

"Nevertheless every job on the works is important and every loss is a blow to the town."

Mr Morley said he would:

* Continue to press Corus to try to minimise job losses and avoid compulsory redundancies

* Contact the Secretary of State for Business and Enterprise Lord Mandelson to ensure everything that could be done to help the steel industry is being done.

* Contact the Department of Work and Pensions to ensure the job centre is Scunthorpe had any additional resources they need to assist people look for other jobs

* Work with North Lincs Council to try to minimise the impact of job losses

* Continue to work with the Regional Development Agency and the council to attract new investment and new opportunities into the area.

* Ensure that government funded infrastructure projects were brought forward as soon as possible and our construction and manufacturing sectors are supported through this period.

Mr Morley said: "There are tentative sign of economic recovery but these are still fragile and there is always a lag in terms of the effect on unemployment.

"Corus have been trying to avoid large scale job losses. It is in their interest to do so as well as the workforce and I would urge them to continue to do that while the market has time to recover."