The GMB says the contract should have gone to Appledore

Three ferries which run between Torpoint in Cornwall and Plymouth in Devon are to be replaced by three bigger vessels at a cost of �15m.

The committee which runs the ferries and the Tamar Bridge chose Ferguson Shipbuilders in Glasgow to carry out the work, saying it was following European guidelines and "best value" legislation.

Union leaders say the contract could have helped Appledore Shipbuilders to survive.

It was an extremely silly decision. Gary Smith, GMB

All 550 workers at Appledore were made redundant on Tuesday after it called in the receivers.

The Tamar Bridge and Torpoint Ferry Joint Committee, which is made up of councillors from both Cornwall County Council and Plymouth City Council, chose the Scottish yard in July.

Gary Smith, from the GMB union in the South West with members at Appledore, said he was furious.

He said: "The prospects for Appledore would have been a lot better if they had won the contract. It was an extremely silly decision.

"It represented a lack of political leadership and political will, and they should be ashamed of what they have done."

Baz Gregory, the Mayor of Saltash, near Torpoint, said people would still have jobs at Appledore if they had been awarded the contract.

He said: "The breathing space would have been enormous and it was taken away from them when they weren't allowed the contract."

The ferry travels between Plymouth and Torpoint in Cornwall

John Crago, the joint chairman of the Tamar Bridge and Torpoint Ferry Joint Committee said: "I don't think the criticism is fair, given the guidelines we had to work to.

"All the tenders were very, very close. We employed consultants to bring them down to a shortlist and we came to a decision that was unanimous.

"Appledore was mentioned, but Ferguson's seemed to be the better option at the committee.

"It could have gone out of the country. At least it has stayed in the UK."

"I think the rules should be looked into, but I think the government could have possibly done more to help Appledore."