DOVER and Deal MP Gwyn Prosser today spoke in the House of Commons about his "horror" at the 600 job losses announced by cross-Channel ferry firm P&O.

His question to Prime Minister Tony Blair was asked before MPs began their discussions about the visit to England by American President George W Bush.

Mr Prosser told the House he had been devastated at the news of job cuts and stressed that was "sickened" at the decision.

He said the move had given him a feeling of deja vu, referring to the 1988 cuts in the workforce which led to the bitter strike and eventual sacking of 2,000 employees.

The former Merchant Navy engineer wanted to know how any boost in the shipping industry could be reconciled with Dover situation.

Mr Blair replied that he understood the latest announcement from P&O was due to the continued decline in demand for the Dover Calais route.

But he assured Mr Prosser that he was in discussion with the company and hoped relevant agencies would be helping the people losing their jobs.

Conservative leader Michael Howard, in whose Folkestone and Hythe constituency many P&O workers live, said he shared the Prime Minister's regret over the job losses.

Meanwhile, the news in the Dover area has been greeted with dismay by business leaders, politicians and townsfolk alike.

Coming just over a month before Christmas, and hot on the heels of the job losses at Hoverspeed, the announcement is a bitter blow to those who will be made redundant, as well as to the economy of the town.

Before speaking in the Commons, Mr Prosser said he believed the company had "over-reacted" and that sacking 600 people for the loss of one ship and conversion of another and "tinkering with operations" seemed to be disproportionate. He said he would be trying to get that number reduced.

Union representatives have called for urgent meetings with the company, and said government subsidies might be needed to support the jobs.

P&O Ferries managing director Russ Peters said the move was being made "in the light of current and foreseen levels of tourist traffic".

Last Thursday the company announced a drop in the number of tourist vehicles and passengers carried this year, compared to 2002, but an increase in freight business.

That increase has not been enough, however, to save 525 seafaring, and 96 shore-based jobs. Those affected in the offices are expected to be mainly in the tourist marketing and on-board services departments.

At the same time as the job cuts were being announced on Tuesday afternoon, news of the redundancies was being broken to staff on board the company's ships, and it is understood that volunteers for redundancy were being sought.

A statement from P&O Ferries said a number of initiatives were being proposed "to counter the market environment which has affected its trading performance over recent months". These will be subject to talks which will be held with employees.

The restructuring will involve reducing the overall capacity on the Dover-Calais route by withdrawing one ferry.

At the moment, seven multi-purpose ships and one freight ship - the European Seaway - operate from Dover. As from January 1, the European Seaway will be withdrawn, and will be laid up pending redeployment elsewhere.

On March 1, the Pride of Burgundy, currently a multi-purpose ferry, will become a dedicated freight ship.

"It is also proposed to launch a revised night-time service on board all Dover-Calais ships in response to growing demand for low cost travel opportunities," said the company announcement.

"The extent and range of on-board services provided on Dover-Calais night sailings will be tailored to meet this changing demand with effect from March 1.

"Further cost savings are proposed for shore-based services, mainly in the tourist marketing and on-board services departments."

If these proposals are implemented, it will mean the loss of 525 seafaring staff, and 96 shored staff redundancies.

The company described these as "regrettable".

"The cost of implementing these proposals and other measures previously agreed would be approximately £15 million.

"Depending on progress with employee consultation and other factors, most if not all of the £15 million will be taken as a restructuring charge within operating profit in 2003."

The net benefits would be at least £15 million of which, again depending on consultation and other factors, approximately £10 million would be achieved in 2004.

Russ Peters, managing director of P&O Ferries, said: "We remain committed to giving our customers the best possible service and to competing vigorously on all of our routes.

"Over the past few months we have seen a continuation of the disappointing trends in our tourist business that we identified earlier in the year.

"We are not alone in experiencing such a downturn but we are the first to propose decisive action to match our capacity to current demand,.

"We regret having to announce these cost-cutting proposals but we believe they are essential if we are to address the present difficulties.

"We will continue to monitor developments carefully and will not hesitate to expand our service on any route if we can do so profitably."