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Last Updated: Monday, 27 September, 2004, 16:25 GMT 17:25 UK
Shipbuilding industry talks due
Defence contract work at Govan
Talks will look at the way forward for shipbuilding
Talks on the future the Govan and Scotstoun shipyards on the Clyde are due to take place with the Ministry of Defence (MoD), it has emerged.

The aim is to end the boom and bust cycle by sharing out work strategically between the UK's six naval shipyards.

Owners, including BAE and VT, will hold talks with the MoD next month.

It was reported that merging the yards would help secure 10,000 jobs but industry sources have said that this was unlikely.

Analysts believe one problem could be the size of stake BAE would have in the merged firm, owning half of the shipyards.

The talks will cover BAE's Clyde yards and its submarine base at Barrow-in-Furness in Cumbria, and yards owned by VT Group, Babcock and Swan Hunter at Portsmouth, Rosyth and Wallsend respectively.

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