Shipyards: Economic Growth

Laurence Turner Excerpts

Tuesday 18th March 2025 Westminster Hall

[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.