Media blamed in Govan contract row

The Govan workforce faces more uncertainty

Scottish Secretary John Reid has said no decision has been taken over a £200m ferry contract and blamed "grotesque misreporting" for writing off the former Kvaerner Govan yard's bid.

Speaking to BBC Scotland, Dr Reid said that union anger at claims the Glasgow yard had lost the contract should be directed at the media.

He said that a decision was still some weeks away and that, until then, he would be fighting to make sure that the yard - now owned by BAe Systems - gets treated fairly.

The work is vital for the yard's future

Dr Reid was responding to workers and union officials angry at reports a German rival had undercut BAe Systems by 50% for a Ministry of Defence ferry contract.

Jamie Webster, the yard's union convener, had earlier said the government appeared to be in a "war of attrition" against the workforce, whose resolve was being "tested to the limit".

He attacked the political "spin" which had grown up around the order, with reports that the Westminster cabinet is split three ways on where the order should be placed.

"I'm waiting to find out, is there anybody in this government going to stand up and tell the workers in here what exactly is going on?", he demanded.

Jamie Webster: "War of attrition"

"If the politicians don't care, I hope to God the people of this country do.

"I'm actually ashamed this morning to be British. The lack of integrity and honesty - you just can't get an answer from anybody here.

"Who is making these statements: 'insiders', 'sources', 'leaks'?

"Please don't treat us with contempt. We're not the brightest people in the world, but we're not stupid.

Redundancy threat

"I don't know whether to laugh or cry. Where is the integrity in politics now. I mean, seriously, where is it?".

Mr Webster was hailed a hero last year when he led the workforce through the turbulent sale of the yard by Kvaerner to BAe Systems. The threat of mass redundancies is now once again hanging over the operation.

Meanwhile, a delegation of senior union leaders met with defence ministers on Tuesday afternoon to press the case for the work going to Govan.

Bleak prospects

Although the meeting was to discuss all the bids for the contract, Scottish representatives expressed satisfaction at assurances that no decision had yet been taken.

Because it is designated a commercial contract, rather than a military one, European Union competition rules mean it must be awarded to the lowest bidder.

If Govan loses out, the prospects for its 3,000 workforce are bleak. They could have no work beyond the summer.

The contract is worth £200m on its own, but that would grow to as much as £1bn in spin-offs and refits.