HUNDREDS of shipbuilders in Hampshire have their eyes on Bristol as talks take place that could ultimately safeguard their jobs in the long term.

Government-sponsored discussions, which are taking place today and tomorrow at the Defence Procurement Agency, may lead to the creation of a non-nationalised single company to build Britain's ships and submarines.

Britain's naval shipbuilders, headed by BAE Systems, VT Group, Swan Hunter and Babcock International, will urge the Ministry of Defence to allocate contracts in such a way as to smooth out the traditional peaks and troughs.

In return, they may merge various operations, such as human resources, marketing and finance departments, to reduce costs to British taxpayers.

Both Farnborough-based BAE Systems and Southampton-based VT Group, which employ thousands of people between them in Hampshire, are currently reaping the rewards of the biggest boom in shipbuilding since the Second World War.

They have lucrative slices of a £6 billion contract to build six Type 45 destroyers and a £4 billion-plus contract for two CVF aircraft carriers.

More than 600 people have just begun work on the second Type 45 destroyer, HMS Dauntless, at VT Group's £50m shipyard at Portsmouth.

Its chief executive, Paul Lester, said: "There is an opportunity now to smooth out (the order flow) over the next 15-year period to the benefit of all."

Mr Lester said there could be a time when there are individual yards being designated specific work.

VT Shipbuilding is currently building the bow sections, funnels and masts for the Type 45 destroyers.

The sections will be transported by barge to BAE Systems' facilities on the Clyde, where the ships are being assembled.

BAE has already floated a consolidation plan to merge its three shipyards - Govan and Scotstoun on the Clyde, and Barrow-in-Furness - with yards owned by VT, Babcock and Swan Hunter, which are at Portsmouth, Rosyth and Wallsend respectively.

An estimated 10,000 people are employed by the industry in the UK.