Yard economic disaster threat

Thousands of jobs outside the yard are also at stake

Failure by the former Kvaerner Govan shipyard to secure at least part of a £200m ferry contract could have disastrous consequences for the Scottish economy.

In the Glasgow area alone it has been estimated that 250 companies supply the yard.

Dependence varies, but if the shipyard loses the contract it could trigger millions of pounds of lost business among suppliers and an indirect threat to thousands more jobs.

Three years ago John Young set up a Elder Ventilation, a firm which specialises in ship ventilation systems.

Hundreds of firms are involved in supplying the yard

Nearly all the company's £750,000 annual turnover comes from contract work with the Govan shipyard.

If the yard fails to win the Ministry of Defence contract for roll-on roll-off ferries there are fears this business could fold.

Mr Young said: "This is a very real situation. It is not cry wolf.

"The effect on the company would be drastic as my company are currently doing about 85% of work within the Kvaerner yard.

"If that is not available then inevitably there will be redundancies."

Jobs threat

The jobs of the firm's 20 workers could be on the line.

Contract worker Tom Mellon said: "Its my bread and butter, this job. Without this job it's the dole."

Eighteen months ago at the Govan yard Montage Resource, a specialist pipe manufacturer, was hit hard when work at the yard suddenly dried up.

Service contracts

Managing director Katrina Docherty has had to struggle to keep the company afloat.

"We are situated right here at the yard in Govan and we were set up specifically for that purpose - to service the yard.

"We have dropped from an average of 100 workforce, right down to as little as 10.

"We have been building our business back up again but it has been a real hard struggle."