Dewar urged to enter Govan row

Govan staff fear the loss of the contract

Donald Dewar has been asked to try to persuade the Ministry of Defence to place a £300m order for roll-on, roll-off ferries with Clydeside shipyards.

The call came from Scottish National Party Glasgow MSP Nicola Sturgeon, and followed a demonstration organised by MPs and unions in support of the BAe Systems-led consortium bidding for the contract.

There has been recent anger after hints from the MoD that British yards were not up to the job.

Angry union leaders and MPs accused the government of briefing against UK yards. They said it should be "talking up" the British shipbuilding industry.

Nicola Sturgeon: Wants to see action

BAe Systems, which has yards at Govan and Scotstoun, in Glasgow, is part of one of the four rival consortia bidding for the contract, worth £1bn over 20 years.

Ms Sturgeon said she had written to the First Minister asking for his intervention.

"There is growing concern for the future of shipbuilding on Clydeside," she said.

"Reports indicate that a German company has undercut BAe System's bid by as much as 15% for the Ministry of Defence roll-on roll-off ferries.

"The Scottish people expect the government to deliver for Govan by safeguarding shipbuilding in Scotland.

George Galloway: Believes the Germans will win

"No other country in the world would allow a contract of this nature to go outwith its shores.

"BAe has stated they will reconsider their position in Govan should they fail to secure the Ministry of Defence contract. If attempts to acquire this contract fail 3,000 jobs will be at risk"

Mohammed Sarwar, Labour MP for Govan, said last week the MoD had stated UK yards would be a risk for the ferry order.

He also maintained a minister had said it was likely the order would go to Germany.

On Sunday he joined fellow Labour MP George Galloway and Labour MSP Gordon Jackson, and unions from the yard in seeking public support for the contract.

Mr Galloway whose is home is near the Scotstoun yard said he feared that without the ferry order the Glasgow yards would close.

Donald Dewar: Asked to get involved

"I believe it's likely the German yard will win the order, in which case Govan will close. The most famous shipyard in Britain will close because the Government placed an order with a German yard," he said.

At the start of the year, Scottish Enterprise Minister Henry McLeish pledged his support and that of First Minister Donald Dewar for the Clydeside bid.

If the ferries were warships for the Royal Navy, the MoD would have the right to award the contract to a British yard.

But under EU rules, ferries are classified as commercial ships and other European shipbuilders must be offered the right to bid for the right to build them.

An MoD spokesman said: "Hopefully an announcement will be made by the end of spring. British yards still very much have a chance of securing the order."