Aircraft Carriers and UK Shipbuilding

Debate between Lord Hammond of Runnymede and Mike Hancock

Wednesday 6th November 2013 Commons Chamber

[Mr Hammond]

I am happy to report that relations in the shipbuilding industry between management and unions are good and constructive. The unions understand the challenge that the industry faces, and they have worked with the management to address it. That sometimes means that union officials must make tough decisions as well, because they know that the industry cannot be sustained at its current size.

The hon. Gentleman alluded to the diversity of the shipbuilding industry. We hear a great deal about how shipbuilding will be sustained through the commercial market and the third-nation market, including the market for warships, but I am afraid I have seen no evidence to suggest that we are able to compete in what is a very aggressive global market for commercial shipping. I think that the shipbuilding industry in this country will be primarily dependent on Royal Navy orders placed in the United Kingdom, because of the sovereign requirement for us to have warship building capability.

[Mr Mike Hancock (Portsmouth South) (Ind)]

Can the Secretary of State explain why it was decided to transfer the existing work that was commissioned in Portsmouth away from the yard, so that the employees there will have no opportunity to complete the construction of the aircraft carriers? Can he also assure us that the MOD will not seek to claw back any of the money that is made available to Portsmouth through the city deal?

[Mr Hammond]

Let me respond first to the question about the aircraft carriers. Today BAE Systems announced its plan for rationalising the industry, as it must do under the TOBA in order to sustain warship building capability in the future. The challenge for us is to bridge the gap between the completion of the carrier and the start of the Type 26 programme. By moving three carrier blocks to the Clyde, along with the manufacture of the OPVs, we shall be able to sustain warship building on the Clyde and to maintain its viability into the future.

I should be happy to discuss the city deal negotiations with the hon. Gentleman, who, I know, is well acquainted with the affairs of Portsmouth city council. I understand that the MOD is prepared to make land available as part of an overall scheme which would create investment and employment opportunities in the city.

Transport (Investment)

Debate between Lord Hammond of Runnymede and Mike Hancock

Tuesday 26th October 2010 Commons Chamber

[Mr Hammond]

The A5-M1 link road has not been shelved: it is a scheme on which we will do further development work. From memory, the issue involves the possibility of a significant developer contribution and the building of the road will open up significant amounts of developable land. We will need to do some further work to ensure that we extract the maximum possible developer contribution and that the public purse is not left to pick up a cost that should properly be borne by the private sector.

[Mr Mike Hancock (Portsmouth South) (LD)]

May I declare an interest as a member of Portsmouth city council? I thank the Secretary of State for his statement and commend to him the scheme for the Tipner interchange, which is in the pre-qualification pool. This scheme already has planning permission and is up and ready to go. It would generate thousands of jobs and create up to 2,500 homes. May I ask for the rapid transportation of that scheme from the qualification pool to the development pool in January, so that we can have a decision in the middle of next year?

[Mr Hammond]

If the fundamentals of the scheme justify its promotion to the development pool, it will be so promoted.