Plans to create an £80m wind turbine plant in Hull could still go ahead, despite fears of Government cuts.

Earlier this year German firm Siemens, the largest provider of wind turbines in the UK, announced proposals to build the manufacturing plant on the east coast.

Hull is on a shortlist of sites being considered by the firm alongside rivals Teesside and Sunderland.

As well as the 700 manufacturing jobs, Siemens says up to 1,500 supply chain jobs will be created by the development.

The plans were put in place after the previous Government promised to give £60m for ports to upgrade to cope with green energy production.

That fund is under review as the new Conservative–Lib Dem coalition is seeking to tackle the £156bn Budget deficit.

But representatives from Siemens say they are confident the plant will be built.

Dr Rachel Odams, from Siemens, said: "As far as we are concerned those plans are still intact.

"Our understanding is they will go ahead and we have not heard anything different to that.

"We have not been told the funding is being pulled or that it will go down."

It is believed the possibility of constructing the factory at Alexandra Dock in east Hull is being explored.

If chosen, a section of the dock could be filled in to accommodate the new plant and the necessary servicing area around it.

The new plant will help Siemens accommodate future demand, driven by the massive offshore wind farms planned off the UK's coast.

Richard Wightman, president of Yorkshire and Humber Chambers of Commerce, said: "Offshore wind power has got huge potential for the Humber ports.

"The previous Government promise of £60m of funding is under review.

"However, we need this administration to unlock that money, which will kick-start the investment process."