Industry leaders today confirmed reports that talks have been taking place to safeguard 600 shipyard jobs in the region.

Regional development agency One NorthEast, politicians and unions are trying to persuade the Ministry of Defence to give an hospital ship contract to Swan Hunter, which employs hundreds on the Tyne and Tees.

The contract would bridge the gap between Swans' current contract and an aircraft carrier order which is due to come to the shipyard in 2008.

A spokesman today confirmed ONE had been in talks aimed at bringing the business to the region.

For full story see The Northern Echo tomorrow.