Oral Answers to Questions

Bob Blackman Excerpts

Monday 30th January 2023 Commons Chamber

[Stephen Hammond (Wimbledon) (Con)]

5. What steps his Department is taking to support British shipbuilding.

[Bob Blackman (Harrow East) (Con)]

8. What steps his Department is taking to support British shipbuilding.

--- Later in debate ---

[Mr Wallace]

First, it is predominantly a matter for private companies or indeed non-Government departments to choose how and why to buy those vessels. But of course, to encourage more UK shipbuilding, we announced in the shipbuilding strategy last year the home shipbuilding credit guarantee scheme, which is there to help counter what seems to be a perverse incentive whereby other countries’ export credits encourage British companies to build abroad. We have been working closely on this with the Department for Business, Energy and Industrial Strategy, and I hope that we will be able to announce more details soon.

[Bob Blackman]

I thank my right hon. Friend for his answer thus far. Clearly, as we replace ageing ships and increase the size of the Navy, it is important that we ensure that those ships are built in Britain rather than abroad. What measures will he take to ensure that there is a long-term plan so that our shipbuilders can plan for the future?

[Mr Wallace]

I point my hon. Friend to the national shipbuilding strategy, which puts in place lots of measures, such as the home shipbuilding guarantee scheme and export credits for foreign buyers, as well as a skills plan, a “yards for the future” plan, which is about what a modern yard should look like and whether we can compete with European yards that have already beaten us to too many contracts, and a shipbuilding pipeline. That is an incredibly important indicator to the industry that there is a long-term pipeline to come through. It is also important to recognise that if we are going to be as successful as we are in the aerospace industry, we will need export, and if we are to export to other markets, we have to recognise that international collaboration is also part of the process. Do I think that Australia and Canada would have bought our Type 26s if we had said, “No way, you are only having ‘British’ on it”? No, and all our supply chain would have suffered as a result.