By my reckoning, this does not meet the challenge of ensuring Govan's future as an integrated shipbuilding facility

John Wall, MSF

Two other ALSLs will be built at the Swan Hunter yard on Tyneside.

The decision was welcomed by unions representing the 1,000 workers at Govan.

Danny Carrigan, regional secretary of the AEEU engineering union, said officials were now seeking a meeting with yard owners BAE Systems to clarify when work would begin on the order.

"We asked for government support and we have received it," said Mr Carrigan.

Campaign 'vindicated'

He said the work would mean the yard's future was secure and it would be able to stay open until 2004, when it will build the first of the Type 45 destroyers already ordered by the Ministry of Defence.

"We are delighted that Govan has been saved and that we have received a positive declaration of Clydeside's future. Our campaign has been vindicated."

But John Wall, the Manufacturing Science and Finance union's Scottish secretary, said: "By my reckoning, this does not meet the challenge of ensuring Govan's future as an integrated shipbuilding facility."

Jobs have been safeguarded

He said Swan Hunter had been appointed as the "lead" yard. The ships were of Dutch design, meaning no design work for Govan.

"It is my understanding that steelwork on these ships will not commence until late summer 2001, possibly July or August. At present, there is insufficient work to bridge that period."

Mr Wall said the solution, which the MoD could provide, was to give the construction of a floating submarine dock to Govan. This would allow immediate design work "allied to an early start date on steel work".

Scottish Secretary John Reid said: "The award of this contract is magnificent news and is expected to secure jobs at Govan and sustain the yard for the future.

"It is testimony to the skills, hard work and determination of everyone at the yard that this order has been won. It removes the doubt and uncertainty that has affected the workforce.

'Renewed optimism'

"Now both they and the company can look to the future with renewed optimism as they face the challenges and opportunities that lie ahead."

The ferries contract is worth an estimated �200m, with spin-off work expected to take the total value to �1bn.

It was put out to tender last year and a decision has been expected for many months, with workers at Govan left on tenterhooks.

Earlier this year it was reported that another UK consortium using a German shipyard had significantly undercut Govan for the ferry work.