AS NEWS of 650 possible job losses at shipbuilder Vosper Thornycroft sinks in, the battle to keep the company in Southampton may be already lost.

Vosper's was today set to be given the all-clear to quit Southampton and move to Portsmouth.

Pompey planners were ready to vote in favour of a massive expansion in the naval base and deliver a second crushing blow to workers at the Woolston yard.

The move comes just 24 hours after VT announced it would axe half its workforce unless it fills its order book within 90 days. It has sparked fresh fears from unions and workers that the company will abandon its Southampton base.

Portsmouth city councillors are being recommended to approve plans for the 500,000sq ft development of an assembly hall and shipbuilding berth, with the creation of 1,425 jobs. Confederation of Shipbuilding and Engineering Unions Southampton branch chairman Mike Budd said they would fight a move of VT's operations down the M27.

"Vosper Thornycroft has made no decision about where it will be based," he said.

"But we suspect that if permission is granted then it will move lock, stock and barrel to Portsmouth.

"We are mounting a campaign to help save the Woolston yard and will be engaging politicians and our unions at a national level to apply ministerial influence on the decision. The future of the Woolston yard is as much the future of that portion of the city because the local economy relies on it."

Confederation secretary Bob Stokes said their worst fear was that the company would concentrate its activity in the naval base.

He said: "If they did that, it would mean a substantial reduction at Woolston.

"Even worse would be VT recouping the costs of their investment by selling off the Woolston yard."

Portsmouth City Council control and environment manager John Slater said the authority had held fruitful discussions with the firm over the proposed development.

Mr Slater said: "This would be shipbuilding within a dockyard and that is not a difficult planning issue to deal with.

"It is clearly a major boost to the Portsmouth economy."

He added that planning permission would enable the firm to decide where it wanted to be based.

A report to development control committee members said: "This offers an excellent opportunity for an important local company to strengthen employment prospects in the region for up to 1,425 people and to recycle existing under-utilised dock facilities within the naval base.

"The proposal is a very large building but subject to agreement of the detailed appearance to alleviate the impact of the scale and bulk of the building, the proposal is capable of support."

It said existing buildings would be demolished and replaced with a new 39m high structure to form a block assembly hall and covered berth for shipbuilding.

Only one letter of objection, from the Portsmouth Society, concerning the building's appearance, had been received but even that group welcomed the return of shipbuilding to the dockyard.

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