THEY used to come in their thousands to watch royalty smash a bottle of champagne, sending the huge metal structure gliding down the runway to send gallons of water crashing towards the opposite shore.

But that was the industrial past the North-East was built on, and, decades on, it was becoming an increasingly dim memory.

However, in the past week, two announcements have seen that past catapult itself back to the present and launch a new era of shipbuilding in the region.

A £130m Ministry of Defence deal for Swan Hunter was followed by yesterday's confirmation of a £340m Cammell Laird contract for two cruise liners.

The contract to build the liners looks likely to secure 4,000 jobs at the company's yards in Tyneside, Teesside, Merseyside, and Gosport, Hampshire - and could create a further 1,000.

Work will go ahead once the Department of Trade and Industry (DTI) approves funding and a Government export guarantee is granted.

A wait of seven years since HMS Richmond headed up the Tyne away from Swan Hunter is a long time, but it is 28 since the Vistafjord - now renamed the Caronia - stood at the top of a runway on the Tyne, waiting to begin a lifetime on the oceans.

Almost 30 years have passed, and, according to George Bruce, of Newcastle University's marine technology department, signs of recovery in the industry are there.

The liner contract is a huge boost for British shipbuilding, taking the industry into one of the most lucrative and fastest growing markets in the world.

Around 50 cruise ships are under construction or on order across the world, with experts predicting that a further 50 vessels could be needed in the foreseeable future.

"This leisure market for shipbuilding has been expanding for the past ten years, and it is continuing to grow," said Mr Bruce.

"Liners are building ahead of demand and the industry seems on the up. There are more students in our marine technology department than 20 years ago, and they are all finding jobs in the industry."

Jonathan Blackie, director of strategy at development agency One NorthEast, believes what is most encouraging is the commitment being made to the more traditional industries.

"As well as being tremendous for the workers at Cammell it also gives the region a great psychological boost," he said.

"It says to people outside the North-East that the region can compete in what are considered to be more traditional industries, not just in the modern business sector, like call centres.

"This industry is rooted in the fabric of the region, and when firms land these contracts it shows we are turning the corner.

"It shows we don't have to rely on inward investment, because we have industries in place which can compete in the world market place."

Mr Blackie believes any jobs created directly on Tyneside and Teesside would lead to a further four jobs in the community outside.

GMB official Jimmy Skivington hoped the news would also give a boost to Wearside.

"If the actual shipbuilding work goes to the Tyne, then I can see work being created on Wearside, as well as Teesside," he said.

"They still have a yard there, and the ship repair work that Cammell Laird carry out may need to be transferred.

"What is most encouraging is that the contract is in the leisure sector, and that side of shipbuilding is about to take off."

However, on the Wear, Pallion Engineering director Peter Callaghan remained cautious about the hopes for shipbuilding and ship repair work.

He said: "If any opportunities came along as a result of this order, then we would obviously look into them in detail.

"But this deal is still dependent on a DTI grant and we must wait to see the outcome of those discussions."

The region will join the workers at Cammell Laird in their month-long wait to hear the outcome of an application for intervention funding.