CRISIS talks are being held today between shipbuilder Swan Hunter and development agency One NorthEast in a last ditch attempt to save hundreds of jobs.

Swans is calling on One NorthEast to support and provide funding for its tender for a £50m contract with Swiss company Allseas to build a pipe-laying vessel.

The work would plug a gap in Swans' order book, create more than 1,500 jobs and prevent the shipyard, at Wallsend, North Tyneside, from being mothballed.

Swans' Teesside yard, at Port Clarence, Middlesbrough, has already been mothballed after work dried up.

Today's meeting with One NorthEast chief executive Alan Clarke comes only days after Shipbuilding Minister Alun Michael held talks with Wallsend MP Nick Brown and GMB union chief Tom Brennan in Whitehall.

Mr Brennan said: "Alun Michael pledged his support and said he would call on One NorthEast to use the ability and funding available to secure this pipe-laying contract with Allseas.

"There have been occasions in the past where French, Spanish and Dutch competitors have managed to use regional funding to bolster up a tender in order to get a contract.

"We want to ensure that Swan Hunter gets that kind of support from the Department of Trade and Industry (DTI) and One NorthEast. They should get behind Swans to win this contract."

A spokesperson for One NorthEast said: "One NorthEast has been in detailed discussions with Swan Hunter for many months now and also with central government about any possible public sector support that can be given to the yard.

"Much of this has centred on providing advice to Swan Hunter on the development of other areas of work, in the knowledge that we, and the DTI, are bound by very tight financial regulations imposed by Government."

Swans' 800 workers are due to complete a £240m Navy contract early next year. The company hopes to win work on a £3.5bn aircraft carrier programme starting in 2008.