IT remained unclear last night whether regional development agency One NorthEast would be able to help struggling shipbuilder Swan Hunter.

The development agency and Swan's owner, Jaap Kroese, said crisis talks held yesterday about the future of the Wallsend shipyard were positive, but would make no further comment.

Mr Kroese and Swan's managing director, Jan Veldhuizen, met One NorthEast chief executive Alan Clarke to ask for financial support.

With its latest contract nearly completed, Swans is bidding for a £50m deal with Swiss company Allseas to build a pipe-laying vessel - the contract could create more than 1,500 jobs.

Mr Kroese said: "The meeting was positive and we are talking with One NorthEast again next week. We are looking for support to get a more competitive bid together for the pipe-laying contract."

Mr Clarke said One NorthEast was prepared to help Swans in any way it could, but said it was bound by financial regulations imposed by central government.

Mr Kroese said he was also in talks with Dutch Partners NV Ecodock about a possible £40m ship-breaking business and has also applied to the Government for licences to dismantle ships at Swans.

He said: "Swan Hunter has lost 1,700 jobs over the past ten years and we need to keep something going. We are continually looking into other areas of work."