THE surprise decision to force BAE Systems to share the lucrative £2.9bn contract to build two giant aircraft carriers has been backed by MPs.

The powerful Commons defence committee said splitting the work - much of which will be carried out at Swan Hunter's yards on Tyneside and Teesside - could help avoid delays and budget over-runs.

BAE systems, the prime contractor for the carrier contract, has been heavily criticised for spiralling costs and delays that dogged both the Nimrod aircraft and Astute submarine programmes.

Back in January, the Ministry of Defence announced a groundbreaking "alliance" arrangement, which gave French contractor Thales one-third of the work.

The MoD will act as a "marriage counsellor" within the alliance, taking on about ten per cent of the risk of building the carriers.

Swan Hunter hopes to win up to 30 per cent of the work - worth up to £500m - building one major section of each of the 60,000-tonne carriers, which will be the length of three football pitches.

The contract is expected to double the overall workforce at the Wallsend and Teesside yards, from about 1,500 to 3,000.

In its report on defence procurement, published yesterday, the committee concluded: "There is significant merit in this novel arrangement.

"There may be some very difficult issues to iron out, which may yet defeat the MoD. But we welcome the alliance model."