LABOUR accused the government today of “undermining” shipyard workers, as fears grow that a £1 billion contract to build Royal Navy ships may go to a Japanese company.

A freedom of information request has revealed that several foreign companies attended a government event launching the bidding for a contract to supply three fleet solid support ships at an estimated cost of £1bn.

Among the companies potentially interested are Japan Marine United Corporation and Mitsui Engineering and Shipbuilding, two prominent Japanese shipbuilding firms.

The National Shipbuilding Strategy clearly states that navy warships must be built in Britain for national security reasons.

However, ministers confirmed in Parliament last week that new fleet support ships would not be classed as “warships,” meaning that they can be constructed abroad.

The news has alarmed the GMB, which is particularly worried that Japanese shipbuilding firms are subsidised by their government, giving them a competitive advantage over British ones.

The union estimates that 6,500 jobs could be created in this country should the contract go to a domestic company.

GMB national officer Ross Murdoch said that the news would create “real concern” for shipbuilding workers already facing an “uncertain future” as the government’s aircraft carrier programme nears its end.

“It is vital that we preserve our defence shipbuilding capabilities and this order would help secure thousands of jobs,” he said.

“It is a mockery of competition to force UK yards to bid against international competitors who enjoy subsidies that are denied to our employers and GMB members.”

Shadow chancellor John McDonnell said the government’s “failure” to place these contracts in British hands would put 6,500 jobs at risk.

Adding that this “epitomises this Conservative government’s short-term view and neglect of British industry,” Mr McDonnell condemned the Tories for “undermining the shipbuilding industry in this country.”

A Ministry of Defence spokeswoman said: “All our warships are built in the UK. Our fleet solid support ships are being procured through international competition because there is no demonstrable national security reason why procurement needs to be restricted.”