Partial reprieve for Rosyth 600 jobs and some ships to be kept in surprise move

At least 600 of the 1300 civilian workers' jobs will be maintained.

Some minesweepers will continue to be based at Rosyth for the

immediate future, according to reports emanating from the Commons late

last night. This could indicate, subject to Cabinet agreement tomorrow,

that Rosyth will be saved as a naval base at least for a couple of years

or so while the Treasury re-assesses the figures.

The eleventh-hour reprieve for Rosyth has still to be confirmed

following intensive negotiations between Scottish Secretary Ian Lang and

Defence Secretary Malcolm Rifkind, both of whom depend on their Scottish

seats, and intervention by the Prime Minister.

Mr Major appears to have taken account of new defence figures produced

by Mr Rifkind that indicate #500m more can be saved on research and

development than had been originally calculated when the Treasury set

about cutting defence expenditure from #23.49bn a year by at least

#1200m. This was the target set by Chancellor of the Exchequer Kenneth

Clarke in his Budget last November.

Last night the precise details of this proposition to be put to

Cabinet tomorrow were still being calculated. Key ministerial meetings

on the issue have been going on for 10 days. But Scottish Office

Ministers were looking happier than they have hitherto about the

prospects for Rosyth.

Workers from Rosyth and other military bases under threat lobbied MPs

at the House of Commons yesterday, unaware that a serious re-think was

going on in Whitehall. The Financial Times this morning reported that

Rosyth could have a future -- for the time being -- because of the

Defence Ministry's recalculation on its global UK research and

development needs.

Accounting errors are blamed by defence chiefs for the over-estimate

of their needs for research and development spending.

Mr Rifkind has apparently discovered that he can also make savings on

spare parts and ammunition for the armed forces. Taken together savings

over the next three years will allow the Defence Department to meet the

Treasury's cuts target.

Severe pressure has been put on the Government by Scots Tory MPs who

have warned that the immediate closure of Rosyth naval base would reduce

the Tories in Scotland to a rump. Sir Nicholas Fairbairn, the maverick

MP for Perth and Kinross, had gone as far as to threaten to resign now

instead of waiting to retire at the next General Election.

Tayside North MP Bill Walker has also been making threatening noises.

The last thing that Mr Major needs is a by-election in Scotland at this

time.

Rosyth may survive tomorrow but it is to be cast in a different role

from the one it has previously filled. The nub of the issue is whether

Rosyth will be allowed by the Cabinet to continue its minesweeping and

fisheries protection.

Labour MPs are still very sceptical about the package for Scotland

that Mr Rifkind will announce tomorrow afternoon.

An extra frigate for Yarrow shipyard and deployment of minesweepers to

the West of Scotland and to Portsmouth, even if some are maintained at

Rosyth, will still not placate Shadow Chancellor Gordon Brown and his

colleagues.

The strength of feeling among workers and public came home to

Westminister yesterday with the mass lobby.

A seven-day campaign to save Rosyth was thought to have won a change

of mind on complete closure, but the base was only expected to be kept

open on a care and maintenance basis with some administrative work for a

few, and perhaps a residential block to be kept open.

Council leaders, Rosyth workers trade unionists and churchmen were

joined by representatives from the almost forgotten Beith armaments

depot in Ayrshire who were making their case too.

Scottish National Party leader Alex Salmond told them the task of the

campaign ''is to make clear that Scotland will not be bought off with a

few crumbs from the Cabinet table. We do not want a care and maintenance

Rosyth.''

Shadow Defence Secretary David Clark warned that worse cuts were to

come.

The Labour Party's computer predictions are that despite tomorrow's

cuts there will be a shortfall of more than #2000m a year in the defence

budget from 1996 onwards.

Mr Brown said last night: ''We will not relax our efforts until

firstly, Rosyth is saved, and secondly, until it has a long-term viable

future.''