Govan lifeline welcomed

The revised bids could be a lifeline for Govan

A UK Government decision to reopen the bidding process for a multi-million pound defence contract has been welcomed.

The Ministry of Defence said on Friday that the four consortia - including the Govan shipyard - bidding for a roll-on, roll-off ferry order could submit revised tenders.

Govan Labour MP Mohammad Sarwar said he was delighted at the move amid concern that a German consortium was undercutting the Scottish bid by £500m.

Mohammad Sarwar: Rules not bent

But in the wake of what were being described as "changed circumstances" the government said the bidders could make revised submissions.

The MoD said the process had been designed to ensure it got the best value for money.

Govan union convener, Jamie Webster, said: "Well, I definitely think it's a step in the right direction, but obviously there is still a lot of work to be done.

"It's definitely good news and we're certainly back in the ball game."

Since the original tendering process, BAe Systems has taken over the Govan yard and the MoD said that meant changed circumstances.

European law

But with a general election expected next year, the political atmosphere has also been changing.

The government was reported to be still furious at the way the German car manufacturer BMW concealed its plan to sell off Rover.

Ministers were understood to have been scrutinising the fine print in order to reopen the ferry bidding process without falling foul of European competition law.

Mr Sarwar insisted the rules have not been bent. He said it was merely a chance for Govan to compete on a level playing field.

He added that he was confident BAe Systems would do well.