A Devon MP has urged Tony Blair to throw his weight behind the Appledore Shipyard as it battles for a vital contract.

The �40m construction job could secure the futures of more than 800 workers in the yard.

But although Appledore's managers are on the brink of securing the deal, they say they still need a loan guarantee from the government.

Liberal Democrat MP, John Burnett, told the Commons: "These loans are available to companies in the EU.

"The company has been in negotiation with the DTI for some time for a guarantee."

Wind farm

Tony Blair offered his support for the case made by the Devon West and Torridge MP, but held back from making a detailed answer to his question.

He said: "These are commercially sensitive discussions that are taking place and it would not be right for me to disclose the details of those deliberations.

"But those making the decisions will listen carefully to what he has said."

Appledore is bidding for the contract from Plymouth-based firm Sea Wind International to build a ship for an offshore wind farm in the Bristol Channel.

The contract would provide about 18 months' work for the yard, and would create 140 new jobs at the Plymouth firm.

The deal is being held up because of a problem with the security of a loan which will pay for it to be completed.

The yard has not secured a new contract since last spring and its current order book runs dry in July.

Last month the company issued a notice warning of 99 job losses.