'Powerful case' over defence cuts

The carriers are being built on the Clyde and at Rosyth

Cancelling two Royal Navy aircraft carrier contracts could cost £3bn and lead to the end of shipbuilding in Scotland, Alex Salmond has warned.

The first minister was speaking after the Scottish political party leaders met Defence Secretary Liam Fox in a fight to save defence jobs.

He said a "powerful case" had been put forward at the meeting in London.

Mr Salmond said Dr Fox had given "no guarantees" but assured the leaders that no final decisions had been taken.

The Ministry of Defence described it as a "productive and useful meeting" and said it was important to maintain a "constructive dialogue" while the strategic defence review continued.

A spokeswoman added that Dr Fox had "acknowledged the significant contribution the Scottish people and defence industry in Scotland make to the Armed Forces".

The Scottish politicians were lobbying to retain bases and orders.

Their joint submission to the UK strategic defence review also warned against big reductions in military personnel.

Mr Salmond said: "I thought our arguments about the skills base for the economy, the capability of shipbuilding and in particular the cost of cancellation, which we have estimated in this document at one of £3bn, seemed to be pushing against an open door with the defence secretary.

"So I think we got a particularly good hearing at putting forward a case for the aircraft carriers."

The leader of the Scottish Lib Dems, Tavish Scott, said both Vince Cable, the Business Secretary, and Michael Moore, the Scottish Secretary, had warned of the loss of jobs and skills if either of the carriers is cancelled.

He added: "Vince Cable said today that these carriers matter to the United Kingdom, they matter to Scotland. The skills that are there in Fife and on the Clyde matter to the country.

"It is very clear that the coalition is taking this issue very seriously indeed and Liberal Democrat ministers from the Secretary of State for Scotland onwards are making it quite clear how important these jobs are, how important the carriers are, to the future of Scotland and to the future of the UK."

The Scottish Labour leader, Iain Gray, also welcomed the opportunity to meet Dr Fox, but said it would have been even stronger if the workforce unions had been involved.

He said: "When I first called for a cross-party approach I stressed the importance of union involvement.

"The other parties at Holyrood agreed but I am extremely disappointed Liam Fox refused to meet them.

"The unions made a significant contribution to the submission, as well as the four parties."

The Scottish Trades Union Congress (STUC) claimed it had been snubbed by the Ministry of Defence (MoD) by not being included.

According to a spokesman for the first minister, their request for trade union and community representatives to attend the meeting was refused by the MoD.

STUC general secretary Grahame Smith said: "The defence secretary's decision to exclude trade unions from the meeting amounts to a disgraceful and brazen snub to a loyal, dedicated and highly productive workforce whose aim was simply to contribute to a mature discussion about the future of their jobs."

He said the MoD's reasons were "clear to no-one", even though it had seemed likely just two weeks ago that they would be involved.

Mr Smith added: "Workers in defence industries may legitimately conclude that their employer, the defence secretary and his department, cares nothing about their interests or views."

However, the MoD said the request for a meeting about defence issues came from the leaders of the Scottish political parties and not from the trade unions.

A spokeswoman said: "Trade unions have already met with defence ministers as part of the consultation process for the UK Strategic Defence and Security Review."

Scotland's defence industry generates an estimated £1.8bn turnover and employs more than 12,600 people, excluding jobs in MoD facilities.

It is feared that any downgrading of an aircraft carriers programme could cost thousands of jobs at shipyards on the Clyde and at Rosyth.

Concerns include the cancellation of one or more of the Queen Elizabeth Class Aircraft Carriers, the Type 26 Frigate Design contract and closure or "significant reduction" in military bases and sites in Scotland.