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Richard Baker (Glenrothes and Mid Fife) (Lab)
I beg to move,
That this House has considered the role of shipyards in economic growth.
It is a great pleasure to serve under your chairship, Ms Jardine. I thank all hon. Members for attending the debate, because shipyards and shipbuilding are iconic symbols of the industrial heritage of the United Kingdom. From the Belfast poetry of Carnduff and the folk songs of England, from the north-east to the south-west, to the words of Donald Dewar at the opening session of the re-established Scottish Parliament, evoking:
“The shout of the welder in the din of the great Clyde shipyards”,
they are part of the economic and social history of these islands.
Our shipyards and the industry and creativity of their skilled workers have been sources of pride for local communities that have too often felt a keen sense of loss whenever a shipyard closed, as many did in the course of the previous century. When I was elected in July, the threat of closure for the Methil yard in my constituency was very real. After three centuries of the yard being the beating heart of the local economy, it was clear within days of this Government taking office that Harland and Wolff, seen as the saviour of the yard after the collapse of previous owners BiFab in 2021, was itself in dire financial difficulties.
That was a hugely anxious time, not only for Methil but for other Harland and Wolff yards in Belfast, Appledore and Arnish, in the constituency of my hon. Friend the Member for Na h-Eileanan an Iar (Torcuil Crichton), with whom I shared many challenging meetings on the prospects for the yards. Those were times of stress and worry for the future for all workers at each of the four yards. It was essential that, where the previous Government had not acted, this Minister and her colleagues took decisive action to save the yards. Many of us were relentless in making the case for the four yards, because not only their facilities but the skills and commitment of their workforces are essential for our mission for economic growth.
I want to pay tribute to the workers at the yards and their unions, Unite and GMB, who fought for their future. In particular, I thank the union representatives at Methil yard, Dougie Somerville of Unite and George McClelland of GMB, who worked alongside the yard’s manager Matt Smith to make the case for the yard to be saved. George started working at Methil in 1973, which is even before I was born. His commitment to the yard has been amazing, and it has paid off.
I recognise it was no easy process to secure a deal for Navantia UK to take on all four yards. The Secretary of State for Business and Trade, the Secretary of State for Scotland and the Minister for Industry had to go to great lengths to secure a deal. For the Scottish yards, an important advocacy role was played by the Scottish Labour leader, Anas Sarwar. I was also pleased that there was positive dialogue between UK and Scottish Ministers on the future of the Scottish yards. I hope that spirit of collaboration continues, working together to promote the facilities at the yards.
It was deeply dispiriting to see yesterday’s announcement that the £175 million contract for seven loch-class vessels to serve our island communities had not been awarded to a Scottish yard but has gone abroad. That is highly disappointing for the shipbuilding industry in Scotland. It is a great concern for Ferguson Marine in the constituency of my hon. Friend the Member for Inverclyde and Renfrewshire West (Martin McCluskey). SNP Ministers simply have to show more ambition for Scotland’s shipyards.
Torcuil Crichton (Na h-Eileanan an Iar) (Lab)
It is an honour to serve under your chairmanship, Ms Jardine, and I pay tribute to my hon. Friend for raising this subject and particularly for referring to the workforce at Ferguson Marine, who have lost out on that small vessel replacement programme, sending 170 jobs down the Swanee. Those workers were political pawns in a nationalist game, which I guess came to its peak when the First Minister launched a ship with painted-on portholes.
All is not lost because it was only phase one of the small vessel replacement programme that went to Poland this week. There is a phase two, which would provide vessels for my constituency: two ferries for the Western Isles and one for Iona. Surely the answer that the Scottish Government should seek to find is that phase two be rolled into phase one and that a direct award be made to Ferguson’s shipyard on the Clyde, which has experience of building those small vessels. We can save jobs, we can deliver the ferries and we can serve the people of the Western Isles by making a direct award.
Richard Baker
I could not agree more with my hon. Friend who, as always, is a doughty campaigner for his constituents. He has also put forward very practical proposals that offer a real way forward to ensure that those vessels are built by Scottish shipyards. We should all be working together to fight for the future of Scotland’s shipyards, so it is a matter of regret, particularly after the announcement yesterday, that we have no Members from the Scottish National party in Westminster Hall for this debate.
The sad news yesterday was in stark contrast to the day of excitement and celebration when the Minister for Industry, who is here today, visited Methil to mark the formal handover of the yard to Navantia UK. Let us hope that in the future we will have joint working and effective collaboration between UK Ministers and Scottish Ministers, and that Scottish Ministers show some ambition for future investment in and contracts for shipyards in Scotland.
Let us be clear that saving the yards is not an act of charity to their workers or the communities they support. The reason it is so important to save these yards is that they have an essential strategic role in promoting economic growth in this country. In 2024, the economic output of our shipyards was £2.7 billion. Between 2019 and 2024, the economic output of the sector increased by 72%, at a time when the overall value of the manufacturing sector declined by 2.4%.
Today, there is so much potential for our shipyards to play an even greater role in growing our economy. The national shipbuilding strategy had already set out plans to deliver a pipeline of more than 150 new naval and civil vessels for the UK Government and the devolved Administrations over the next 30 years. Ports are now one of the five key sectors earmarked for £5.8 billion of investment through the National Wealth Fund. Those plans for investment are all the more important today, as the budget for defence spending increases to enable the UK to fulfil our responsibilities to Ukraine and in other arenas.
Laurence Turner (Birmingham Northfield) (Lab)
It is a pleasure to serve under your chairship, Ms Jardine, and I draw attention to my declaration in the Register of Members’ Financial Interests and my membership of the GMB and Unite trade unions.
I thank my hon. Friend for his words about the workers at Arnish and I know that he has played a very important role in advocating for that yard. He talked about the national shipbuilding strategy and defence orders. Historically, all Royal Navy and Royal Fleet Auxiliary orders were fulfilled by UK shipyards. That changed in 2012 when the MARS tanker order was awarded to Daewoo in South Korea. Subsequently, the 2017 national shipbuilding strategy made it an assumption that all such defence orders would be put out to international tender, bar some exclusions. Does he agree that that has been a source of real uncertainty in a sector that needs long-term planning, and that in future any industrial strategy should provide maximum assurance about the pipeline of orders for our domestic shipbuilding yards?
Richard Baker
My hon. Friend makes an extremely important and very eloquently argued point. We need to have such security for our shipbuilders and our shipyards, and our procurement strategy must support that agenda. Later, I will say more about how the ambitions about the security of future work at our shipyards that he has just set out can be realised.
It is our shipyards and our shipyard workers who will be crucial in developing our new defence capabilities, including the more than 350 skilled workers from my constituency who work at Babcock in Rosyth, in the constituency of my hon. Friend the Member for Dunfermline and Dollar (Graeme Downie). It is not only in defence that our shipyards have a key role to play in economic growth, but in renewables as well. It is right that Labour’s green prosperity plan highlighted the role of ports in growing our renewable sector.
Navantia’s plan for Methil is that it will become the business’s centre of excellence for offshore wind manufacturing in the UK through Navantia Seanergies, its specialist renewable energy division. Navantia has announced plans to modernise both Methil and Arnish, with advanced fabrication and assembly capabilities, aligning with national commitments to secure domestic energy security while meeting our ambitious energy transition targets. I believe it would make great sense to extend the Forth green freeport area to include Methil and, in doing so, provide important incentives for that vital work.
In addition to yards being centres for renewables infrastructure, the transition towards low-emission ships and sustainable materials presents opportunities for innovation and leadership in environmentally friendly maritime technology. Green shipbuilding can be incentivised through Government procurement, and with the current scale of procurement in shipbuilding, there is also a role for the Government to encourage collaboration between naval shipbuilders, rather than running competitive tenders for each project. Most of all, the huge potential for growth in shipbuilding and fabrication in this country can only be achieved by investing in skills.
We have an ageing workforce in our shipyards, but the prospects today for young people joining the industry are bright. That makes it all the more important that we recruit and train young people in the skills our shipyards need. In Methil, there are plans for comprehensive training programmes, including on-site training at Navantia’s Spanish facilities—when I talked to apprentices on a cold day in Methil, they were right behind those plans—which demonstrate Navantia’s commitment to developing a highly skilled local workforce. It is important that the UK Government, devolved Governments and local skill agencies support that vital work.
One of the moments after the Methil yard was saved I found most rewarding was when Neil Cafferky, an apprentice draughtsman at Methil, had the opportunity to tell the Prime Minister what it meant for him that he would be able to continue his apprenticeship at Methil. Neil studied at Fife College and New College Lanarkshire before beginning his apprenticeship at the yard in 2021. That journey of skills and training has been amazing for Neil, because in 2022, Neil was a finalist in the Scottish Renewables young professionals green energy awards.
Neil is not alone in having a bright future at Methil. Of the 200 workers whose jobs at the yard were saved, 51 are apprentices. They are among thousands in the shipyards across our country. Investing in our shipyards means thousands of young people having the prospect of skilled, well-paid jobs throughout their career, with all the benefits that will bring to them, their communities and their country.
The actions taken by Ministers early in this Government show that they understand the importance of our shipyards in growing our economy. If we seize all the fantastic opportunities we have to grow our shipyards and boost the brilliant, highly skilled workforces that they employ, the story of shipyards in this country is not only one of a proud history, but of a vibrant future as well.
Christine Jardine (in the Chair)
Order. I remind Members that they should bob if they wish to be called in the debate and, if possible, keep to an informal five-minute time limit to allow everyone to get in. I call Edward Morello.
Edward Morello (West Dorset) (LD)
It is a pleasure to serve under your chairship, Ms Jardine. I congratulate the hon. Member for Glenrothes and Mid Fife (Richard Baker) on securing this debate.
Dorset does not enjoy the kind of large shipyards that the hon. Member outlined, but the marine industry is vital to Dorset’s economy. It generates £483 million in gross value added and supports more than 8,000 jobs. Importantly, 71% of those jobs are in boatbuilding, reinforcing the sector’s importance to the region. Local shipyards and boatbuilders provide high-quality, skilled employment in coastal communities; they offer well-paid jobs in areas where such opportunities are often limited.
However, the industry is at a crossroads. The shortage of skilled workers in the area is now the single greatest barrier to growth. We must do more to attract and retain talent in the sector. One key opportunity lies in supporting women in boatbuilding. Historically, women have been under-represented in this industry. It estimates that only 2% to 5% of hands-on yard workers are women. However, initiatives such as Women in Boatbuilding are changing this. Women in Boatbuilding has played a transformative role, particularly in Lyme Regis, where it has helped the Boat Building Academy, which I recently had the pleasure of visiting, to achieve a 50:50 gender split on its flagship boatbuilding course. Women in Boatbuilding not only promotes diversity, but drives economic growth. By making shipyards and boatyards more inclusive, we widen the talent pipeline, ensuring the industry’s long-term sustainability. With the right support, more women will enter the profession, leading to greater innovation, a stronger workforce and a more resilient industry.
Supporting new talent is vital, but we must also protect the heritage of traditional boatbuilding. The National Shipbuilding Office recognises that the leisure sector accounts for 14% of the UK’s shipbuilding industry, yet traditional boatbuilding is being neglected. In 2023, traditional wooden boat building was added to the Heritage Crafts Association’s red list of endangered crafts, highlighting the urgent need for action. Without intervention, we risk losing centuries-old skills that have built and maintained iconic vessels—from Dunkirk’s little ships to HMS Victory. These crafts not only preserve our maritime history, but contribute to our economy.
The solution is clear: we need central support and funding dedicated to preserving traditional boatbuilding skills. Without that, apprenticeships remain inaccessible outside the south-west, skilled labour shortages will worsen and our internationally admired shipyards will struggle to compete. Dorset has a proud maritime heritage and a thriving marine industry, but it needs investment, skills development and a commitment to inclusivity to ensure its future success. We have the talent, expertise and global reputation. Now we must ensure that this industry has the resources to grow, to innovate and to inspire the next generation of boatbuilders. Let us invest in our shipyards, our workforce and our maritime heritage before it is too late.
John Grady (Glasgow East) (Lab)
It is a pleasure to serve under your chairship, Ms Jardine. I congratulate my hon. Friend the Member for Glenrothes and Mid Fife (Richard Baker) on securing this important debate. He spoke very knowledgeably about the topic, and his incredibly successful work to secure the future of the Harland and Wolff yard in Methil demonstrates what a conscientious, hard-working fighter for his community he is. I am proud to call him my friend.
Shipbuilding is a growth industry. Between 2019 and 2024, the economic output of the shipyard sector in the UK increased by 72%—I wish we could say that about much more of the British economy. There are almost 39,000 employee jobs in that industry in the UK, with 19% in Scotland, so it is an industry that we must get behind. It is central to Glasgow and the Clyde region. As everyone knows, Glasgow has a proud history of shipbuilding. At one point, more than 100,000 people were working in 38 yards along the Clyde; at the turn of the last century, almost one in four boats sailing in the world was built on the Clyde, so shipbuilding is in Glasgow’s blood. The number is much lower now, but like any Glasgow MP, I have constituents who depend on the shipyards on the Clyde for work, and they make a significant contribution to Glasgow’s economy.
We have world-class defence shipyards. We have two shipyards on the upper Clyde and they are operated by BAE Systems. They have a long history of developing first-class ships for defending the United Kingdom, and the new Type 26 frigates at the dockyards will do the same. This creates wealth across Glasgow, including in my seat. We also have a brilliant maritime education sector in Glasgow, and much of this is in my seat, on the Clyde. City of Glasgow college, trains craft apprentices for the BAE Govan and Scotstoun shipyards, and BAE has a brilliant on-site skills academy. City of Glasgow college also trains very many merchant navy officers in the UK, and many of those involved live in my seat, including in the Gorbals, as I find regularly when I knock on doors.
We need to keep warship building work in the UK. Make no mistake: this is essential for national security. We may wish for the world to be different, but we have to take it as it is. Skills in military and domestic shipyards are very important as we face this unpredictable world.
Civilian shipyards could also provide great opportunities in Glasgow, such as in renewable energy. Of course I would like to see Government support for shipbuilding, but it has to be deployed wisely. Taxpayers and the wider economy expect that money to be deployed wisely. Regretfully, that has not been the case with the SNP Government, who own the Ferguson Marine shipyard in Port Glasgow, just along from my constituency. They have spent more than £500 million on two ferries, which are hundreds of millions of pounds over budget. They nationalised the yard in 2019, but despite it being state-owned, Audit Scotland in December 2024 raised very serious concerns about governance at the yard. It said:
“Internal audit has not been able to provide assurance on FMPG’s risk management, control and governance arrangements”
and other matters.
Yesterday, we learned that Ferguson Marine had lost out to a shipyard in Gdańsk on a £175 million contract to build vessels for the Scottish Government. My hon. Friend the Member for Inverclyde and Renfrewshire West (Martin McCluskey) is entirely correct that the Scottish Government have prioritised opportunities in Poland over those in Port Glasgow. The outcome of six years of SNP control of that shipyard is hundreds of millions of pounds wasted; it is an absolute scandal.
The SNP Government have failed the people of Port Glasgow—some of the most deprived communities in our family of nations—while wasting hundreds of millions of pounds of taxpayers’ money. Port Glasgow desperately needs good jobs, as does the whole of the Clyde region and Glasgow, and we should be incredibly angry at that SNP scandal. That is another SNP Government failure: they have failed Glasgow and the Clyde region on shipbuilding, education, health, transport and economic growth. After 18 years of the SNP, Scottish shipbuilding and Scotland need a new direction.
Jim Shannon (Strangford) (DUP)
It is a pleasure to serve under your chairship, Ms Jardine. It seems to be a regular occurrence in Westminster Hall now. I wish you well and thank you for all you do.
I thank the hon. Member for Glenrothes and Mid Fife (Richard Baker) for leading the debate. I am very pleased to be here. He mentioned Harland and Wolff, which I will talk about as it obviously plays a critical role in Northern Ireland. For the record, the Minister has played a significant role, along with others, in ensuring that its future is a lot rosier than we thought it would be. We were worried about its future, but the Minister and others have ensured that it looks much brighter.
Shipbuilding has been crucial for the UK for decades. It generates hundreds of thousands of jobs and improves infrastructure between mainland Britain and the devolved institutions. I am honoured and pleased to be here to showcase the success of our fantastic shipbuilding sector. Gone are the days when Harland and Wolff employed almost 30,000 people in Belfast. It is down to about 1,000 or 1,500, but it hopes to grow to 2,000, 2,500 or maybe even more.
In the 19th and 20th centuries, Northern Ireland paved the way in shipbuilding. Some of the world’s most iconic ships were built at the heart of Harland and Wolff in Belfast. Everyone knows of the famous Titanic, probably for the wrong reasons—the tragedy in which all those people lost their lives—but there were also the RMS Britannic and the RMS Olympic. At the time Harland and Wolff, in the neighbouring constituency of Belfast East, represented by my right hon. Friend the Member for Belfast East (Gavin Robinson), was one of the largest, most famous shipbuilding companies in the world. We are proud of that rich history.
I am proud to be able to speak about what Harland and Wolff has done in Northern Ireland and the jobs it has created. The tradition of shipbuilding, although not as big as it was, is still significant within Harland and Wolff across this great United Kingdom of Great Britain and Northern Ireland.
Northern Ireland is and was a global hub for shipbuilding. The sector employs hundreds even today, so it is important that we protect and preserve it, and retain people and give them opportunities. We want to protect and retain shipbuilding skills, including metalworking and engineering.
We are rich in shipbuilding culture for many reasons, including defence, global trade, imports, exports, design and engineering—the hon. Member for Glenrothes and Mid Fife mentioned that in his introduction. In September 2024, Harland and Wolff entered administration for the second time in five years. In January 2025, with the help of Ministers and others, it was announced that the Spanish-owned firm Navantia was to take over ownership, maintaining the core roots of the historic shipyard in Belfast and elsewhere in this United Kingdom.
Maintaining jobs is at the core of any administrative takeover. Many employees who worked in Harland and Wolff before the takeover lived in my constituency and still do. I remember the tradition of shipbuilding even in the small village of Greyabbey, which I lived just outside of. The number of people who worked in the shipyards in the 1960s and ’70s and even in the ’80s was significant, as it was in Newtownards. Like some of those people, employees today are fearful of job losses and redundancy. The Minister has also been involved—for which I thank him—in the Spirit/Airbus takeover. Employees are not in control of which sectors are bought, which poses a massive question mark to their livelihoods, and indeed their futures.
Shipbuilding contributes billions of pounds to the United Kingdom economy, both centrally and through devolution. We continue to export and repair ships and we have a part of the defence contract as well, which we are very proud to have. It massively contributes to the value of our trade and goods. Furthermore, some 36,000 people are employed in our wonderful Royal Navy. Shipbuilding is imperative for our defence capabilities, from defending our overseas territories to protecting our sea trade routes. Without the shipbuilding sector and the staff and people that have made it what it is, success would not be possible. Warships and submarines are built in other areas across the nation, including areas in England and Scotland and in the constituency of the hon. Member for Glenrothes and Mid Fife, who introduced the debate. I am surprised that his colleague, whose constituency I cannot remember, is not here. He has always been very much to the fore in naval debates. I expected him to be here to wax lyrical about what he would do. I can remember his name but not his constituency.
Richard Baker
I think the hon. Member might be recalling my hon. Friend the Member for Dunfermline and Dollar (Graeme Downie), who is at this moment at the Rosyth port meeting Babcock. His passion for his community and for that yard is, as the hon. Member knows, very strong.
Jim Shannon
I thank the hon. Gentleman for filling in that gap. Hansard will pick up on the constituency and keep it right. The only reason the hon. Member for Dunfermline and Dollar (Graeme Downie) is not here is because he is away doing something very practical in his own constituency, so well done to him.
We must continue to prioritise shipbuilding for the future, so I look to the Minister for the commitment that I know is already there. Just for the record, it is always good to have the reassurance that we all seek. There are steps that the Government can take to provide direct financial support to the shipbuilding sector, both centrally on the mainland and regionally to the devolved nations. Infrastructure development is massively important for the United Kingdom, from our safety right through to the food in our supermarkets. I am old enough to remember things that we used to say in my history class: we are an island built on coal, surrounded by waters full of fish. I am not sure whether that is true any more, but it tells us that the role of ships in connecting our islands is very important.
The history goes back centuries and is something to be proud of. In Northern Ireland it is always great to look back and recollect the successes of our past and still be grateful to this day that shipbuilding is as important as ever, despite being under the control of different companies. It still creates jobs, wage packets and opportunities and helps us grow as a nation.
I will conclude with this. I look to the Minister for her commitment to the industry and to the staff that will ensure it continues for the future. I am pleased to see the Minister, who has shown commitment, in her place. In all the things that I have brought to her attention, I have never once found her wanting, and I am sure we will not find her wanting this time, either.
Irene Campbell (North Ayrshire and Arran) (Lab)
It is a privilege to serve under your chairship, Ms Jardine. I thank my hon. Friend the Member for Glenrothes and Mid Fife (Richard Baker) for securing this debate on this very important topic. In Scotland the ferry fleet is years old and replacements have not been ordered in a timely way, which has caused chaos and difficulties for many of those in island and mainland communities. Now more than ever, we need a robust ferry replacement programme to ensure that our island communities are fully connected to the mainland. This debate provides an opportunity to highlight the importance of a UK shipbuilding industry.
Take my constituency of North Ayrshire and Arran and the impact that the lack of an effective ferry replacement strategy has had on our local communities, especially the island communities. Two state-of-the-art ferries were commissioned by the Scottish SNP Government for routes to the Isle of Arran. However, that was not what the community really needed or wanted. What we actually needed were smaller ferries that fit in the existing port at Ardrossan harbour, not new and expensive ships. We needed ferries that were built locally and which could provide a reliable and much-needed service, rather than the stop-start one we have at the moment. That is due to myriad issues, too many to mention in this debate. One of the new ferries is the one that had the painted windows seven years ago, which I will speak about in a moment.
The ferries were originally commissioned in 2015 and were scheduled to be ready for service in 2018. Glen Sannox has only entered service this year, 2025, and has already been recalled due to faults. Glen Rosa is due to be ready for September 2025—seven years too late for the people of Ardrossan and Arran. Had there been a planned, sustainable order procurement process we would not be in the position we are in Scotland. When planning for future projects, the Scottish Government need to prevent the Ardrossan harbour situation from ever happening again. That should be done through robust and thorough planning.
Ardrossan’s economy has for many years relied on the harbour. The Isle of Arran is becoming isolated, suffering economically from a lack of tourism as sailings have been greatly reduced. Residents suffer as they cannot access essential services on the mainline, such as hospital appointments—so this is serious. We are now in the position where we might lose the port of Ardrossan because a ship has been built that cannot fit in the harbour. That will severely affect the local economy of Ardrossan and Arran and that of the surrounding area.
As we heard earlier, the recent procurement process to build seven new small electric ferries has awarded the contract to a non-UK bidder. It is a real pity to see the local nationalised shipyard Ferguson Marine, which has a track record of building smaller vessels on time and in budget, miss out on new contracts such as this.
I would like to finish by highlighting the importance of shipbuilding to national strategy. UK shipyards play a key role in our defence, as the Royal Navy depends on them for the construction and maintenance of their vessels. Given that we are increasing the defence budget to 2.5%, I think we can all agree that it is time to revisit and reinvigorate this overlooked industry.
Patricia Ferguson (Glasgow West) (Lab)
I look forward to serving under your leadership this afternoon, Ms Jardine. I thank my hon. Friend the Member for Glenrothes and Mid Fife (Richard Baker) for securing this debate and for an interesting, passionate opening speech. I also congratulate him and everyone involved in securing the Methil yard to make sure that there are jobs, opportunities and of course ships in future.
It is often said the Clyde built Glasgow and Glasgow built the Clyde. To anyone familiar with our city, that is more than just an expression: it is a way of describing the relationship that Glaswegians have with the Clyde. For centuries, it was a major shipbuilding river with some 30,000 ships built in yards in Glasgow and along the 116 miles of the Clyde. The expression “Clyde built” was synonymous with quality and was one that Glaswegians were particularly proud of. With the decline in shipbuilding, a major source of work, industry and pride was taken from the city.
As we have heard, the latest blow was delivered just this week when Ferguson Marine, established in 1903 and the last yard on the lower Clyde, lost out to a Polish company on a contract to build seven electric ferries for CalMac. Ferguson is a Scottish Government-owned company. It has been at the centre of controversy following delays and overruns in the construction of two new, much larger, ferries for CalMac. The contract for the Glen Sannox and Glen Rosa was originally awarded in 2015. It was not until January 2025 that the Glen Sannox was put into service.
I will skip the bit about a First Minister of Scotland launching a ferry in 2017, when it was incomplete and had portholes painted on.
Patricia Ferguson
I was going to skip it because I thought I would save the blushes of the SNP Members present but, as none is present, I will carry on. It was the indignity of indignities perhaps to see a First Minister of Scotland launching a ferry with portholes painted on—something that was drawn attention to at the time, but did not seem to faze her. Perhaps we should have learned that the person in question was unembarrassable.
However, just last week, the ferry in question, brought into service in January 2025, was found to have a crack in the hull. Fortunately, that seems to have been overcome and the ferry is back in service. However, the award of the contract to a Polish company is very disappointing, as the contract for the seven new, smaller ferries was seen as a way of allowing Ferguson Marine to move forward, to put its troubles behind it and to build the kind of ships that it has expertise in doing. It was also a way to ensure the continuation of shipbuilding on the Clyde and the preservation of the jobs of the workers there.
As my hon. Friend the Member for Inverclyde and Renfrewshire West (Martin McCluskey) said yesterday, CalMac’s decision is incredibly disappointing and is a result of the Scottish Government failing to provide a direct award to the yard. That should never have been allowed to happen. Now no workers in Scotland, let alone Inverclyde, will benefit from those contracts. My hon. Friend was absolutely right to say that. By way of contrast, I will just mention that, in Stavanger last week, on a visit with the Scottish Affairs Committee, I saw a new electric ferry built in Norway, for Norway.
We have heard about the difficulties that many of our island communities have in reaching the mainland. We have heard about the issues that islanders have in accessing appointments and going about their business in the way most of the rest of us who do not live in island communities expect to, but an additional problem is caused by the age of our ferry fleet. People on the islands find it very difficult to go about their business island to island. The interconnectedness of our islands is suffering, too.
In my constituency of Glasgow West and stretching across the Clyde into Glasgow South West, we have BAE Systems, which makes the Type 26 frigate, which is highly rated around the world and highly adaptable, too. As well as contracts with the Ministry of Defence for eight frigates, Australia and Canada have chosen that particular frigate for their fleets and work is ongoing to try to secure a major contract with Norway, which would be hugely significant for both countries in terms of not just the export of the frigate itself, but what it would mean to our relationship and the defence of the two nations.
Last year, I visited BAE Systems’ new training academy, built at a cost of some £15 million. BAE recognised that skills in areas such as welding were in short supply in the UK and has set about training the workers of the future, as well as upskilling existing workers, and training the leaders of the future. The state of the art academy is teaching 200 young people every year about project management, the management of cranes and welding, to name but a few of the jobs that people are being prepared for. The way in which innovative technology is used in the academy is remarkable. The young people I met that day are clearly relishing the opportunities they have.
Obviously, BAE Systems is training the workers it needs for the future—men and women, to take the point made by the hon. Member for West Dorset (Edward Morello)—but I would be surprised if some of the skills acquired in the academy were not also utilised in our green energy transition, and in the transition towards low-emission ships and sustainable and environmentally friendly maritime technology. It is clear to me that those young people will ensure that the term “Clyde-built” will continue to be a designation denoting high quality for decades to come.
Mr Richard Quigley (Isle of Wight West) (Lab)
It is a pleasure to serve under your chairship, Ms Jardine. I thank my hon. Friend the Member for Glenrothes and Mid Fife (Richard Baker) for securing this debate on the role of shipyards in economic growth, which is particularly important to coastal communities such as those in my constituency. I say to my hon. Friend the Member for North Ayrshire and Arran (Irene Campbell) that I can match her issues with ferries and raise her some.
For an island community like ours, shipbuilding is not just an industry, but part of our identity, our economy and our connection to the mainland. The Isle of Wight has a proud history of maritime innovation—from the pioneering days of Saunders-Roe, which led the way in hydrofoil and hovercraft development, to Wight Shipyard today, which is a leader in high-speed, low-carbon vessel construction. Across the island, boatbuilders such as Lallows boatyard and Diverse Marine, and marine engineering firms such as White Marine, continue to provide skilled employment and contribute to the wider maritime sector. We are especially proud to be Europe’s leader in aluminium welding, where world-class craftsmanship, cutting-edge technology and an unwavering commitment to innovation combine to shape the future of the industry.
But the significance of shipbuilding on the Isle of Wight extends far beyond jobs and exports. It is about connectivity and resilience. As an island, we are uniquely dependent on our ferries. Companies such as Wight Shipyard play a crucial role in designing and constructing the vessels that keep our communities connected, including the Thames Clipper boats here in London. Investing in shipbuilding on the Isle of Wight is about not just economic growth, but securing our transport lifeline, ensuring that our ferries remain reliable, affordable and fit for the future. Our ferries are not a luxury; they are essential. They support commuting, tourism, healthcare access and supply chains. By backing local shipbuilders, we can develop and maintain the vessels we rely on, reduce costs and drive innovation in greener, more efficient transport. In doing so, we strengthen not just our economy but the very infrastructure that keeps the Isle of Wight moving.
Shipbuilding on the Isle of Wight should not just be a story of the past; it must be a driving force for our future. At a time when coastal economies need regeneration, the industry has the potential to unlock long-term sustainable growth. The skills, expertise and infrastructure are already here. Investing in our shipyards means creating high-quality jobs, boosting local businesses and ensuring that the island remains at the forefront of maritime innovation.
There are real opportunities. The clean maritime demonstration competition has already funded innovative projects. We have the chance to position the Isle of Wight as a centre of excellence for low-carbon vessel design, but we need long-term commitment. We need capital investment, research and development support, and fair procurement policies that recognise the value of British shipbuilding. For instance, Wight Shipyard refurbished our Border Force boats and has the capability to build the new fleet at considerable savings to the current estimates. It just needs a route into the procurement process.
I urge the Minister to recognise the strategic importance of shipyards, particularly for island communities such as the Isle of Wight. By investing in our shipbuilders, we are not just creating jobs; we are securing the future of our island economy, strengthening our transport resilience and ensuring that Britain remains a global leader in maritime innovation.
Alison Hume (Scarborough and Whitby) (Lab)
It is a pleasure to serve under your chairship, Ms Jardine. I congratulate my hon. Friend the Member for Glenrothes and Mid Fife (Richard Baker) on securing this debate.
For centuries, shipbuilding has been a pillar of British industry, contributing not only to our maritime heritage but to the economic prosperity of our coastal communities. In the 1790s, Whitby was the second largest shipbuilding port in England. Indeed, a certain Captain James Cook learned his seafaring skills in the town, and his marvellous ship, the Endeavour, was also built there. Hon. Members can find out more about our proud shipbuilding history by visiting the Captain Cook memorial museum or Whitby museum.
Today, Parkol Marine Engineering at Eskside wharf in Whitby has a workforce of more than 70. In 2017, it opened a second yard in Middlesbrough. Parkol has customers from across the UK and Europe, for whom it builds fishing trawlers as well as fully custom designs. Recently, it won two public tenders, which it wants to capitalise on to obtain more work in the workboat industry. This is important, because in a town where low-paid and seasonal jobs in tourism and retail predominate, Parkol offers young people in Whitby much-needed skills and opportunities, as well as apprenticeships in manufacturing, engineering, fabrication and business. That all significantly contributes to our local economy. Parkol told me that a lot of the necessary skills have been lost or are carried out by workers towards the end of their careers, so it strives to promote reintroduction of those skills via in-house apprenticeships.
Beyond direct employment, shipyards provide contracts for steelmakers, electrical engineers, software developers and countless other businesses. It is crucial that we recognise that broader economic impact and ensure that shipyards receive the backing they need to thrive. As Members have referenced, shipyards are more than just workplaces; they are engines of economic growth and cornerstones of national security. We must give them the best possible chance to grow.
Parkol’s location on the east coast positions it well for carrying out maintenance work on crew transfer vessels and workboats employed on wind farms or offshore projects in the North sea. It has a floating dry dock, but it was built in the 1990s and now it has outgrown it, which means that larger vessels have to use slipways in Scotland and Holland. It is looking at how to increase its capacity, but has struggled to identify suitable funding or grant streams.
I am pleased that the Government have made clear their commitment to supporting job creation and long-term growth in the shipbuilding sector. I ask the Minister to commit to a bold vision for our shipyards, big or small, ensuring that they continue to serve as a source of national pride and economic prosperity for communities such as mine for generations to come.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
It is a pleasure to speak in any debate chaired by your good self, Ms Jardine.
I, too, note that a certain political party from Scotland is not present today, which is a disgrace. Let us think about what it would be like to be working in Ferguson’s right now. Through no fault of the workforce—there is nothing wrong with their skills—they have been left out, which is pretty bad, and not one of those Members bothers to show up. I would not let them run a birthday party in a brewery, if I can put it that way.
Nevertheless, we have had good news about the frigates that are going to be built in Scotland. I suggest that there will probably be a greater necessity to build more of them, and I imagine that that work could come to Scotland. We have the skills and we should be proud of that.
When I was growing up in the highlands, there was a dismal litany of depopulation. When I was at Tain Royal academy, the brightest and best—and many others— went south. Indeed, my father said to me, “Go south, young lad, to work and to prosper.” But then the oil came. I give credit to the then Labour Government for seeing the potential of North sea oil and for lifting the ball and running with it, because those crucial decisions in the early 1970s created the industry that we have today.
Because of where the potential yards were situated, and the need to get them to the North sea, it made sense to build them in the Outer Hebrides, Kishorn, Ardersier and Nigg. In the early 1970s, we saw the transfer of the skills that have already been mentioned from the Clyde and other parts of the UK. Those skills moved north to build the mighty structures that we have today in the North sea.
I worked in the Kishorn yard on the Ninian Central Platform, which in its day was the biggest concrete structure ever built, and in the Nigg yard for a number of years. At the height of North sea construction and fabrication, no less than 5,000 people worked in the Nigg yard. Hon. Members can imagine what a difference that made to the local economy of that remote part of the highlands—depopulation disappeared just like that.
People moved in. We made jokes about them—no offence to hon. Members from the west of Scotland—and called them Hey Jimmys, because they all came in saying, “Hey Jim!” They got my name right, because I am James, which was rather charming. It was a shot in the arm to see, in my home town of Tain, people coming in from south-west Scotland and other parts. What that meant in terms of amateur operatic societies, and just doing things in the community, was a great change—very much for the good. I remember those days with great happiness: I married and I brought up my children because of the employment in those yards. That was why I did not move away and why I disobeyed my father’s instructions.
More recently, as has been mentioned, we have seen the potential of floating offshore structures. As I have said, the Nigg yard where I worked was placed where it was because it was in one of the finest deep-water ports in the United Kingdom, where big structures could be built and moved relatively easily out to the North sea. For that reason, I am grateful to the Government for the announcement in the last few days that £55 million will be given to the port of Cromarty firth to develop an alongside fabrication facility to create and put together those modular structures that can then be taken out. I thank the Government for that very welcome decision.
From that investment, we can do great things in future, but I also suggest that time is of the essence. The skills mentioned by the hon. Member for Glasgow West (Patricia Ferguson) are ageing. If they are lost, they could be gone forever, because they are clever skills such as butt welding and all the different sorts of fabrication in steel, aluminium or concrete. In getting ahead with what we are doing now, we will be in the nick of time to train up new generations based on past generations’ knowledge and ability. I welcome that.
This has been a well-tempered debate—apart from the conspicuous absence of some hon. Members—which sends a good message to everybody who cares about our shipbuilding industry. Everyone is singing from the same hymn sheet, which is to be welcomed because, as others hon. Members said, it was shipbuilding that made this country great. We have the skills and the people, and we can do it again, but this time with offshore and other similar structures.
If a Government Member would like to visit my constituency to see what we are going to do, they would be more than welcome—to say the least. I may be in a different party, but I extend the hand of friendship. I know that a visit would mean a great deal to the local people.
Greg Smith (Mid Buckinghamshire) (Con)
It is a pleasure to serve under your chairmanship, Ms Jardine. I congratulate the hon. Member for Glenrothes and Mid Fife (Richard Baker) on securing this debate on the often overlooked but critical contribution of great shipyards to our nation’s economic strength, employment prospects and national security. Many hon. Members have spoken with great passion and knowledge about the sector and about yards in their constituencies. My own constituency is a stone’s throw from Leighton Buzzard, which is the furthest point in England from the sea, so I cannot speak with any local knowledge but I absolutely acknowledge the shipbuilding sector’s critical role.
For centuries, shipbuilding has been a cornerstone of British industry, sustaining local economies, providing skilled jobs and securing our place as a maritime power. As we have rightly heard during this debate, the UK’s shipyards have played a dual role—driving economic growth at national and local levels while ensuring our security at sea. Under the previous Conservative Government, decisive steps were taken to secure the future of British shipbuilding and maintenance, including supporting jobs, upskilling our workforce and reinforcing our defence infrastructure. Under the new Government so far, we have seen a more lacklustre set of steps taken towards supporting this sector.
Shipyards are more than just industrial sites; they are economic lifelines for the communities that surround them. For example, in Portsmouth and Govan, BAE Systems surface shipyards have been instrumental in building the Royal Navy’s cutting-edge fleet. The last Conservative Government’s commitment to the Type 26 and Type 31 frigate programmes guaranteed long-term employment and training opportunities for engineers and apprentices. Those contracts not only secured local jobs, but strengthened the wider economy.
In Cumbria, the BAE Systems submarine yard in Barrow-in-Furness has been at the heart of our nation’s defence. Thanks to strategic spending by the previous Conservative Government, Astute-class and Dreadnought-class submarines continue to provide thousands of highly skilled jobs while reinforcing Britain’s nuclear deterrent. That is a prime example of how economic security is directly linked to national security. Spending on our defence industry ensures that we remain prepared for the threats of the future.
In Birkenhead, Cammell Laird has been a stronghold for commercial and defence-related shipbuilding. Contracts secured under the previous Government provided much-needed stability, supporting jobs in the north-west and reinforcing the UK’s ability to maintain its naval and commercial fleets.
One of the most important aspects of shipbuilding is its role in training the next generation of workers. The previous Conservative Government recognised that, and supported and backed apprenticeship schemes that ensured that young people could gain the skills needed to drive innovation in the sector. The workforce at shipyards such as Govan and Barrow-in-Furness includes thousands of highly trained welders, engineers and naval architects. We ensured that their skills were passed down through new training programmes and partnerships with local colleges.
Without continued spending, there is a real risk of losing that expertise to foreign competitors, yet the current Labour Government have failed to provide the necessary assurances to sustain those initiatives. The lack of new contracts, clear strategic direction and industry support has left many shipyards facing an uncertain future.
Richard Baker
I share the hon. Member’s ambitions for our shipyard sector. I was recently at the Rosyth dockyard in the constituency of my hon. Friend the Member for Dunfermline and Dollar (Graeme Downie), where the workforce were excited about the future. They were already looking forward to a long order list and now feel in a position for that to grow, given the prospect of increased defence spending. Does the hon. Member agree that the strategic aim set out by the Government provides great opportunities for our shipyards and shipbuilding sector?
Greg Smith
That is indeed good news. The Conservative party, as His Majesty’s loyal Opposition, has supported the Government’s increases in defence spending. We moderately disagree on the pace of that increase, because we want to go considerably faster, but I recognise the hon. Gentleman’s point about the good news for that particular shipyard.
I ask the Minister whether, following the defence uplift, the Government will commit to construct all our military vessels in the United Kingdom. The link between economic security and national security cannot be overstated. A strong shipbuilding industry means a strong Royal Navy, ensuring that the UK remains a global maritime power. It also means domestic manufacturing capabilities, reducing reliance on foreign suppliers and keeping critical national infrastructure under British control.
The Conservatives understand that reality. When we were in government, our national shipbuilding strategy was designed to create a steady pipeline of work to provide stability for our shipyards and to ensure that Britain could defend herself in an increasingly unpredictable world. That approach guaranteed not just warships but support vessels, reinforcing our ability to project power on the world stage.
However, the Government’s delay in awarding many new contracts and the absence of a clear vision for the future of UK shipbuilding weakens our defences and threatens those skilled jobs. That threat extends to virgin steel production—a critical component in the shipbuilding supply chain. The Government have failed to negotiate a deal with the United States, whereas we secured the 500,000-tonne tariff-free agreement when in government. The lack of a deal is a real threat to the industry.
Shipbuilding depends on steel production, which is already suffering from Labour’s failure to negotiate. Will the Minister provide the crucial update on talks with the United States that people whose jobs are on the line are desperate to hear? We need urgent action to safeguard our economic and national security interests. Does the Minister have any ongoing concerns, or is she confident in the future of those sites? The Government’s handling of Harland and Wolff when the company needed financial support—it was threatened with administration, and the Government did little or nothing to stop that—was hardly a boost of confidence for the thousands of jobs that depend on the supply chain.
Patricia Ferguson
I thank the hon. Member for taking an intervention. I am not sure whether he misheard or did not hear the earlier part of the discussions in Westminster Hall this afternoon when Members on this side of the House and Liberal Democrat Members talked about the fact that Harland and Wolff was saved in both Methil and Northern Ireland. That is surely something to be celebrated across the Chamber.
Greg Smith
I am grateful to the hon. Lady for that intervention, and it is absolutely good news that Harland and Wolff has survived, but throughout the entire summer, not long after the new Government were elected to office, there were constant asks for financial support that were not forthcoming. It took a very long time. This is fundamentally a debate, but I would gently suggest that the saving of Harland and Wolff—which I reiterate is good news—happened in many respects despite the early actions of the new Government and not because of them.
Patricia Ferguson
Would the hon. Member take another intervention on that point?
Patricia Ferguson
I am grateful for that good-humoured response. Does he accept that the problems with Harland and Wolff did not just arise after a Labour Government were elected? Given that the Labour Government were able to announce that Harland and Wolff would continue and survive in December—fewer than six months after they came into office—it seems to me that the Government really care about the industry and worked really hard to make that happen.
Greg Smith
I am grateful for the points that the hon. Lady makes. The point from my earlier comment still stands—I was the shadow Minister over the summer; I survived my party’s reshuffle—that many asks were being made by Harland and Wolff much earlier, and that was something that was not initially forthcoming. I fully accept the timeline that the hon. Lady sets out. This was not something that suddenly happened on 4 July, but when a new Government come in they should be judged on the speed of their response and exactly what is done to save that sector. We must continue to back our shipyards, provide long-term certainty for workers and reinforce Britain’s position as a global leader in shipbuilding. By doing so, we will not only create a prosperous economy, but ensure that our nation remains safe and secure for generations to come.
The Minister for Industry (Sarah Jones)
It is a pleasure to serve under your chairmanship, Ms Jardine. I congratulate my hon. Friend the Member for Glenrothes and Mid Fife (Richard Baker) on securing such an important debate. I thank him for quoting Donald Dewar in the first speech of the Scottish Parliament in 1998. I worked in an office next to Donald Dewar for a couple of years and he was an incredible man. He also said in that speech:
“We are fallible. We will make mistakes. But we will never lose sight of what brought us here: the striving to do right by the people of Scotland; to respect their priorities; to better their lot; and to contribute to the commonweal.”
The debate this afternoon has shown that many Members are carrying on in that spirit and acting in that way on behalf of their constituents.
One of the first issues that crossed our desks when we came to power last July was the challenge with Harland and Wolff. We were faced with a dilemma: if we had, as the shadow Minister suggested, thrown money immediately at the problem, we would have been throwing good money after bad. That was clear to anybody who had any sight of what was happening, but it was also clear that we were in a perilous position and we wanted to make sure that the Government could do whatever they could to save all four yards. There was a big push, for a number of reasons including the contracts that existed, to think about Belfast, and not to think about the four yards together.
A collective piece of work was done in which I played a small part and my hon. Friends the Members for Glenrothes and Mid Fife and for Na h-Eileanan an Iar (Torcuil Crichton), who has the Arnish port in his constituency, as well as the Secretaries of State for Northern Ireland, Scotland and Defence and my boss the Secretary of State for Business and Trade, played a large part. They all wanted to make sure we could do some kind of deal. When I was sat in the Ministry of Defence with Navantia, we were scratching our heads and thinking, “What on earth needs to be done here?” It was a big piece of work, with a lot of hard work around the clock from officials. The Prime Minister intervened because he saw the importance of this good piece of work. My hon. Friend the Member for Glenrothes and Mid Fife made the important point that we did not want to do this work out of a sense of charity. It was because the people at Methil, in his case, are enormously skilled, offering the possibility of future contracts and operations.
We did not see it as charity; we saw it as protecting the talent we have in this country, and wanting to see it grow. When I had the privilege of going to Methil to meet and talk to some of the 200 workers, 50 of whom are apprentices, it was apparent that this was a place—though cold—where we built the things that defined the 20th century, and can also be where we build the things that will define the decades to come. It is important to keep that in mind.
I want to touch on an issue many hon. Members raised about the Scottish Government, procurement and the award going to a Polish shipyard. I was talking to my hon. Friend the Member for Inverclyde and Renfrewshire West (Martin McCluskey) about that earlier today. He questioned why Poland had been chosen over Port Glasgow, which was a good question to ask. I know Anas Sarwar has also been asking questions. I heard the intervention about phase 2, and perhaps there is something to be pulled and gained from this, though what has transpired is a shame.
There is a question about procurement, which both we and the Minister for Defence Procurement are looking at. We will keep doing that, including considering the Procurement Act 2023. I will soon be talking to that Minister, not only in this area but on steel, to see what more we can do.
Jamie Stone
I thank the Minister for giving way. On that point, I do not know how well I can put this. In building offshore structures, different bits can be built in different places, but they would come to Invergordon to be amalgamated, hence the £55 million Government investment. Could the same principle apply of looking at the rules, to ensure that the different bits are built in Methil or Ardersier, rather than being built abroad? Because that is our fear, that they may be made far away in somewhere such as Poland or Korea.
Sarah Jones
I thank the hon. Member for that intervention. He mentioned the importance of the £55 million that has gone to Cromarty Firth. Of course, we need to ensure, when looking at supply chains in whatever the industry, we do what we can to rebuild British jobs. In quite a few of our manufacturing industries over recent years, we have seen a slow decline, which we are keen to turn around.
I am working on the steel strategy, where we have a £2.5 billion fund that we committed to in the general election, on top of the £500 million that will be going, if delivered, to the Port Talbot work with Tata. That is a lot of taxpayers’ money; we want to ensure we are spending it wisely and that we are using the levers of Government, whether in procurement or other matters, to ensure that we are building as much as we can in the UK. We obviously have to be cognisant of laws around procurement and need to look at it carefully. It is an ambition of the Government that we make things in the UK and use supply chains here as much as possible.
I am sorry about the decision that was made in Scotland. I am also sorry that there is no one here from the SNP to make their case. We will do what we can with procurement to ensure we make the right decisions. We talked about shipbuilding and shipyards and the importance—
John Grady
On the topic of SNP Members being away—perhaps they are all listening to “Desert Island Discs”, although one would not reach the desert island if the SNP were in charge—many of my constituents have family, friends and loved ones on the Scottish islands, but at many times of the year they have terrible difficulty going to see them because of the appalling ferry service. That is because the age of the fleet has increased significantly during the 18 years that the SNP has been in power and the reliability of the vessels is down, which damages businesses, people trying to go to hospitals or travelling, and industry on those islands. Does my hon. Friend agree that the way the SNP has managed the ferry service in Scotland over the last 18 years is utterly contemptible?
Sarah Jones
I thank my hon. Friend for his intervention and I will bow to his wisdom as to why and how that situation has transpired, but for sure the ferry service is crucial for people’s lives, wellbeing and health. As my hon. Friend the Member for Isle of Wight West (Mr Quigley) said, a ferry service is not just about identity; it is also about basic necessities and lifelines. So, I agree with my hon. Friend that there does not appear to have been good management of the ferries by the SNP, but sadly we are not overly surprised by that.
There were lots of good contributions to the debate about the role that shipbuilding can play and about some of the issues that we need to look at. We have talked a lot about defence. I know that my hon. Friend the Member for Glenrothes and Mid Fife, who secured this debate, has about 350 workers in his constituency who work for Babcock and we are really pleased that the Government have committed to the 2.5% spending on defence going up to 3%. I have talked to the Minister for Defence Procurement and Industry, and of course we all think that the increase in defence spending presents an opportunity to do more here in the UK. I am working with colleagues to make sure that we get that right.
The whole point of the industrial strategy, which the Conservative party was ideologically opposed to, is to bring together the things that we do really well and ensure that all the levers of Government are tilted in the direction of turbocharging those sectors. Defence is one of those sectors, but historically defence has sort of worked to one side and everybody else has worked to another side. We are trying to bring those two together a bit, so that civil and defence can work together, learn with each other and prioritise all that activity from Government, to make sure that, as I say, we are turbocharging those eight sectors, one of which is defence.
There was a lot of talk about apprenticeships. The spokesperson for the Opposition, the hon. Member for Mid Buckinghamshire, talked about the apprenticeships that were set up under the last Government. Sadly, the apprenticeship levy does not work for a lot of people and we have shortages in professions such as welding. Indeed, welders have been on the Migration Advisory Committee list of people who we can procure from other countries because we are not training enough of our own. So, to see those welders in Methil learning their trade was a great thing. It was also great to hear the senior managers at Navantia talk to me about welding, because they actually know about shipbuilding and welding; they have real expertise. That was really encouraging.
We are reforming the apprenticeship levy, we are talking about how we can ensure that companies invest more in apprenticeships, and we are again looking at how we can tilt the whole skills regime towards the professions that we know we will need in the future. Engineers, welders and electricians are all on the list of the professions we need to boost in the future.
Members also talked about the opportunity provided by offshore wind and the green economy, as it were, more widely. As has been said already, Navantia plans to make Methil the centre of excellence for offshore wind manufacturing. There is also green shipbuilding, which is a burgeoning industry, and there is the whole infrastructure of monopiles and floating jackets—all of those possibilities—as well. I have also talked to the industry about the opportunities to lead the way in autonomous systems and robotics.
When we pull together the industrial strategy, the defence spending, our reforms to apprenticeships and our prioritisation of funding, including the Cromarty Firth example, the National Wealth Fund—with £5.3 billion for clean, green energy in five groupings, one of which is ports—and the clean industry bonus, which is another opportunity to support growth in this sector, it is clear that the Government have a plan. That has been lacking in previous years, but we are not afraid to roll up our sleeves and get things done. We are all invested in the shipbuilding industry for reasons relating to the past and, more importantly, the future.
The hon. Member for West Dorset (Edward Morello) talked about women in boatbuilding. I spend quite a lot of time with a lot of men in the industries I work with. That was a good point, well made.
My hon. Friend the Member for Glasgow East (John Grady) made a good point about the importance of spending taxpayers’ money wisely in this space and not throwing good money after bad. I have talked about that already. We need to back winners and use that money as wisely as we can.
I thank the hon. Member for Strangford (Jim Shannon) for his kind words. He made the point that shipbuilding used to employ tens of thousands of people, but now it employs hundreds to a couple of thousand. We are realistic about that. We are talking about a smaller industry because of the changing nature of how ships are built, but it is still very important.
My hon. Friend the Member for North Ayrshire and Arran (Irene Campbell) talked about procurement, which I have touched on already—it is very important. It is nice that my hon. Friend the Member for Glasgow West (Patricia Ferguson) saw the electric ferry bought in Norway, for Norway, but that speaks to a point that we are all looking at: we want do more in the UK.
My hon. Friend the Member for Isle of Wight West said that shipbuilding is a lifeline, a kind of identity and an opportunity for economic growth. I agree with that, of course.
My hon. Friend the Member for Scarborough and Whitby (Alison Hume) mentioned Captain Cook and the Endeavour. I did not know about that, but I now do. She talked about skills and apprenticeships, which I have touched on. She is absolutely right that they are very important.
This is an incredibly important area for the Government. We have put our money where our mouth is and are ready to do what needs to be done. The industrial strategy, the apprenticeship work and the defence spending present huge opportunities for the future, and I look forward to working with everyone here to deliver them.
Richard Baker
Thank you for chairing this excellent debate so skilfully, Ms Jardine. I thank Members from across the House for their informed and important contributions. There has been great consensus about the exciting prospects for shipbuilding and shipyards in this country. There is the potential to invest in skills to ensure that they and the workforce are retained in our local communities, so we must build training and apprenticeship opportunities for our young people.
That commitment has been reflected by the actions the Government have taken, including the intervention to save Harland and Wolff and our investment plans to ensure shipyards have a great role in the future. I could not agree more with the points that hon. Members made about the need to invest in shipbuilding in Scotland. I would say that as an MP for a Scottish constituency. Saving the Methil yard was absolutely essential for me.
My hon. Friend the Member for Glasgow West (Patricia Ferguson) said that Clyde-built ships are synonymous with quality and reputation. We have that aspiration for shipbuilding right across the UK. Those qualities are represented by so many shipyards across our constituencies. That is why we should be passionate and confident about the future of our shipyards, and invest in them. It is hugely regrettable that the Scottish Government in the past few months and years have not shown that commitment, or evidence of support, but this Labour Government, in their first months in office, have done so.
We have been through the experience of Harland and Wolff, which the hon. Member for Strangford (Jim Shannon) knows well. He spoke passionately about how it affects his constituents; it is so important to have a Northern Irish voice in this debate. I recall all too well what the Government inherited. Regrettably, the previous Government had done nothing for over a year to save those yards. The prospect of investing in the company as it was then was not realistic, and would only have threatened the yards further in the future. What came forward was a clear strategy that succeeded in saving the yards.
I take onboard fully the fact that there has been consensus across the Chamber that we want to invest in shipbuilding and shipyards; the hon. Member for Mid Buckinghamshire (Greg Smith) shared in that. The Government’s ambitions for shipbuilding and our shipyards are clearly shared across the Chamber. The Liberal Democrat spokesperson, and my erstwhile University Challenge teammate, the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone), spoke very well about that, drawing on his professional as well as his political background. The ambition set out across the Chamber for our shipyards in renewables and defence is very clear. It is an opportunity for us to grasp.
The Government have made an excellent start, and indicated a clear plan for a bright future for our shipyards. I am pleased that the debate has reflected the commitment across the Chamber, from all the parties who were represented, to that ambition for our shipyards and our country. Apprentices, both female and male, will be looking forward to a long and bright future in our shipyards. I think we will all support that over the course of this Parliament.
Question put and agreed to.
Resolved,
That this House has considered the role of shipyards in economic growth.