THOUSANDS of North-East jobs are in jeopardy after the Government backed away from its pledge to build Royal Navy ships in the region.

Swan Hunter, which has yards on Teesside and Tyneside, was one of four shipbuilders earmarked by defence bosses for a £2.9bn project to build two aircraft carriers.

Known as the CVF project, the work was due to start in 2008. It was expected to create about 3,000 jobs in the yards, as well as sustaining at least another 8,000 in the wider supply chain.

But the Ministry of Defence has now said that no one is guaranteed any of the work.

Defence Secretary Geoff Hoon announced in January 2003 that, subject to certain conditions being met, the work would be divided between Swan Hunter and three other UK yards.

His pledge was reiterated in February, by then Transport Secretary Alistair Darling, and again in March, when Armed Forces Minister Adam Ingram visited Swan Hunter.

John Mitchell, project director at Swan Hunter, said: "The contracting strategy may well be different to the statement made by Geoff Hoon two-and-a-half years ago. I don't think any one person knows what is going on at the moment."

The MoD last night denied any concrete guarantees had ever been made.

A spokesman said: "The four yards were potentially offering the best combination for delivering on CVF. But that was always subject to them delivering the best value for money.

"They are still playing a key role in the ongoing discussions."

A 100-day review of the CVF programme ends this Friday. The Government is expected to receive its conclusions within weeks.

It has been widely reported that it will recommend some of the work is done in France, which is commissioning an aircraft carrier of its own.

Chancellor Gordon Brown yesterday pledged that would not happen.

He told the GMB union's conference in Newcastle that the fabrication would be carried out in the UK, but he did not make any specific promises for the region.

Mr Mitchell said he believed collaboration between the two governments was more likely to result in joint bulk purch-asing to reduce the cost of components.

GMB regional secretary Tom Brennan, who has campaigned on behalf of workers at Swan Hunter, remains optimistic that the yard will get CVF work.

"It would be impossible to build these vessels without a massive contribution from the North-East," he said.

"There are just not that many yards that can carry out the work."