MPS have called on Theresa May’s Government to keep a £1 billion shipbuilding order in the UK, which supporters of the move claim could create or secure up to 6,700 jobs, including 1,800 across Britain’s shipyards.
The Commons All Party Parliamentary Group[APPG] for Shipbuilding and Ship Repair urges UK ministers to change course and guarantee the £1bn order for Fleet Solid Support vessels is placed with UK yards.
Fears have been raised that the order could go to Spain; the only UK company among five bidders competing for it is Babcock, which will send part of the work to the Rosyth yard in Fife.
Industry sources have suggested Spanish firm Navantia could be given the contract in a bid to buy the Spanish Government's silence over territorial claims to Gibraltar in the Brexit negotiations.
The GMB shipbuilding union welcomed the MPs’ report, which supports its long-running campaign.
Ross Murdoch, the union’s National Officer, said: “This detailed and convincing cross-party report is an important intervention. Ministers promised a shipbuilding ‘renaissance’ but instead skilled workers are being laid off while major orders are sent overseas.
“The UK needs its own military shipbuilding capacity. Penny Mourdant[the new Defence Secretary] now has an historic opportunity to change course and help secure the future of jobs and yards that are under threat.”
He added: “GMB calls on the Government to adopt this important report and guarantee that in future all Royal Navy and Royal Fleet Auxiliary ships will be built in UK yards.”
The APPG report recommended the Government should:
*choose to build Royal Fleet Auxiliary Fleet Solid Support Ships in the UK and thus retain skills needed for the construction of complex warships;
*factor in the revenue returned to the Treasury when scoring bids between domestic suppliers and foreign competitors;
*recognise, when considering its export strategy for the Type 31e frigate, many foreign shipyards are either state-owned or receive significant direct or indirect subsidy, which places UK shipbuilders at a competitive disadvantage;
*acknowledge the commercial value of exportable warship mission systems and through-life support rather than focus export strategy around the export of lesser-value complete warship hulls and
*publish a new study on UK sovereign defence capability.
The Ministry of Defence has made clear the Government is required by law to procure the Fleet Solid Support ships through open international competition.
The final decision on the winning bid will be made in 2020.
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