TRADE unions have today welcomed the UK Government’s new National Shipbuilding Strategy but have called for further guarantees to ensure thousands of Scottish jobs are not lost in between contracts.

Sir Michael Fallon, the Defence Secretary, unveiled what he described as an “ambitious” strategy, which aims to create a renaissance in British shipbuilding with Scottish yards not only making warships for the Royal Navy but also exporting them across the world.

The announcement is a response to a report, commissioned last year by Government, from industrialist Sir John Parker, who recommended engaging shipyards all around the UK to increase so-called "modular construction", whereby component parts are made across yards north and south of the border and then assembled at a central hub.

This was the method used for the Royal Navy's biggest ever ship, the 65,000-tonne aircraft carrier HMS Queen Elizabeth, which was built in blocks by more than 10,000 people in six British cities before being assembled in Rosyth.

Sir Michael explained how a new fleet of multimillion-pound warships could be built in such blocks across several British shipyards and then assembled at one location.

He said the first batch of new Type 31e frigates would be built with the export market in mind with the UK shipbuilding industry potentially serving both the Royal Navy and navies of allies and partners.

The cost of the first batch of five Type 31e frigates would be capped at no more than £250 million each.

The frigates are due to be in service by 2023 and shipyards would be encouraged to ensure the vessel was competitive on the global market by working with "global partners".

"This new approach will lead to more cutting-edge ships for the growing Royal Navy that will be designed to maximise exports and be attractive to navies around the world,” declared the Secretary of State.

"Backed up by a commitment to spend billions on new ships, our plan will help boost jobs, skills and growth in shipyards and the supply chain across the UK," added Sir Michael.

Ian Waddell for Unite said the new strategy was “welcome news but the UK Government can and should go further to support jobs and the supply chain”.

He went on: “Not only do ministers need to guarantee the use of British steel in these vessels but they need to extend the shipbuilding strategy to ensure the next generation of Royal Navy support ships are built in an alliance of UK shipyards.

“Combined with the Type 26 and Type 31 frigates, it would keep all the UK shipyards fully employed and provide certainty for the industry that would lead to investment for the long term and world class efficiency.”

Gary Cook, the GMB Scotland Organiser and Scottish Chairman of the Confederation of Shipbuilding and Engineering Unions said: "Let's be clear, the type-31 contracts were originally promised to the Upper Clyde.

“So while shipbuilding communities across the UK would benefit from a work-share programme of the type-31 work, this will be at the expense of the Upper Clyde despite its own future already secured until the 2030s.”

But he also se stressed that with the aircraft carrier contracts drawing to an end, the manufacture of three 40,000 tonne support vessels would “help bridge any future shortfall in work while creating thousands more opportunities in working class communities across the UK”.