BUSINESS and political leaders from across the Far North have called on the Bligh Government to do everything it can to ensure a lucrative Defence contract awarded to a Cairns shipbuilding company is not torpedoed.

Last Saturday, AIMTEK, trading as NQEA, was awarded a $300m contract to help build Australia's three new frontline air warfare destroyers, creating more than 250 jobs and boosting the Far Northern economy.

But on Tuesday, it was reported the company had not received financial backing for a 10 per cent performance bond needed to secure the contract.

AIMTEK has held discussions with Treasurer Andrew Fraser about the State Government underwriting the project to ensure the contract was delivered to Cairns.

There had been suggestions the Government was unwilling to underwrite the project because of the precedent it would set, but The Cairns Post understands there are options open for the State Government to help.

An AIMTEK spokesman was unable to discuss the matter yesterday, but Mr Fraser confirmed meetings had taken place and said no decision had been made.

"I have met with representatives from AIMTEK and we are considering their request for assistance," he said.

"We are doing our best to be part of the solution and keep jobs in Cairns."

The Far North's state and federal Labor politicians have all voiced their support for the contract, saying it was vital for the ongoing health of the Cairns economy.

"With such large contracts there is always going to be things that need to be worked through and that is what is happening at the moment," Leichhardt MP Jim Turnour said.

"If they can finalise this contract it will place Cairns well for future contracts."

Barron River MP Steve Wettenhall said it was up to him and his Far Northern colleagues to ensure AIMTEK was successful.

"Our job as local representatives is to remind our colleagues in Brisbane that Cairns is under the pump at the moment so projects like this are of critical importance for our local economy," he said.

Cairns MP Desley Boyle, who sat in on meetings between the Treasurer and the company on Monday night, said she was determined to help the Far North secure the contract.

"What I'm interested in is seeing this contract and the jobs it creates secured for Cairns and Far North Queensland," she said.

Mulgrave MP Curtis Pitt and Cook MP Jason O’Brien also said the Government would help AIMTEK in any way it could.

Advance Cairns CEO Ross Contarino said the contract leaving Cairns would be devastating for the local economy.

"We are really excited about this contract and the huge boost it will bring for our economy," he said.

"I don't want to burst that bubble."

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