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 BBC Scotland's Forbes McFall reports"The yard has high hopes of securing the defence contract"  real 28k  |
Prime Minister Tony Blair refused to be drawn on the controversy in the House of Commons after an MP voiced concern that the BAE Systems yard at Govan had already lost in the race for the £300m contract to build six roll-on roll-off ferries.
The controversy erupted when an MoD official was reported to have said it was "potentially high risk" to consider any UK yard for the deal because of their lack of experience in ferry building.
 Mohammad Sarwar: Angered by reports
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During Prime Minister's Questions, Glasgow Govan Labour MP, Mohammed Sarwar, said the MoD had "stated that UK shipyards would be a huge risk for the pending roll-on, roll-off ferries order".
It has also been alleged that a minister said the order could go to Germany.
Mr Blair replied: "I am not aware of that. The Ministry of Defence have not made their decision yet and I think that you should at least wait for that decision."
'Breaking point'
The order has been viewed as crucial for the Govan yard and, while the row has led to dismay for workers there, they have maintained their determination to succeed.
Union convener Jamie Webster said: "The workers really are at breaking point as far as emotional stress is concerned.
"We've still got great expectations that we can secure that order for the Clyde. We weren't broken before and we're certainly not broken now but we're disappointed, we feel let down."
Defence Secretary Geoff Hoon later met a group of concerned Labour MPs and insisted no decision on the contract had been taken.
 Dr John Reid backed the yard
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"Govan is the largest merchant shipbuilder in the United Kingdom.
"It clearly has the capability and the quality. The last ferry built in Govan was of high quality, built on time and to budget," he said.
"With the decision imminent, the comments cast the whole bidding process into complete doubt. Where is the commercial confidentiality involved?"
Scottish Secretary, Dr John Reid, dismissed suggestions that the MoD had decided to award the contract to Germany.
Dr Reid, who has voiced his support for the Govan yard, said the bids were still being considered by the MoD.
There has been speculation that shipyards in Germany were receiving hidden government subsidies, but Dr Reid said that he was confident the MoD would take into account what it saw as "unfair" assistance when judging the bids.
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