A GOVERNMENT review of defence contracts will be concluded in time to help North-East businesses -including troubled shipbuilder Swan Hunter - it has been revealed.

Defence businesses across the region will know by the end of the year what work they could expect to bid for in the future.

David Bowles, chief executive of Northern Defence Industries, said Lord Drayson's defence strategy will provide "clarity". As many as 400 North-East companies could be applying for contracts.

"Companies need to have some idea when these contracts will be placed and that's what this review is all about," he said.

"We are talking about billions of pounds worth of contracts, many of which will be fundamental to the future of businesses across the North-East.

"Defence contracts can be anything from five to 30 years, so we are looking at long-term projects that will secure jobs and businesses and underpin the economy in the region."

At the launch of the Defence Systems and Equipment International Trade Show this week, Lord Drayson, appointed to conduct the review by Tony Blair in May, reaffirmed his commitment to completing the review by the end of the year.

He said: "I intend the strategy to be published before Christmas.

"That might seem almost indecent haste for a minister new to Government, but I not only think that the public and industry deserve some clearer answers, I also know that several companies are fundamentally reviewing their business strategies over the next few months."

He said he was demanding "gritty conclusions" on shipbuilding and ship support, but warned that the industry "might not get all the conclusions they would like".

His words come only a week after he met unions over the uncertain future of Tyneside shipbuilder Swan Hunter.

Last week, The Northern Echo revealed Swan's Wallsend shipyard is in danger of being mothballed unless it secures more contracts.

Its 800 workers are due to complete a £240m Navy contract for two Royal Fleet Artillery vessels early next year and staff are already being laid-off.

The firm is hoping to land a large part of the £3.5bn aircraft carrier programme, creating about 3,000 fabrication jobs in the yard.

But work is not due to start until 2008 and bosses are concerned there will be no skilled workers left by then.

Mr Bowles said: "There is no doubt that this review is important because British industries, in particular prime contractors like BAE Systems and Swan Hunter, are waiting desperately for movement on contracts like the aircraft carrier programme."

There was no one from Swan Hunter available for comment last night.