National Shipbuilding Strategy

Lord Greenway Excerpts

Tuesday 15th March 2022 Lords Chamber

[Baroness Goldie (Con)]

I say to the right reverend Prelate that figure 1, which is now assuming iconic importance in this discussion, is purely illustrative; it is not meant to be a precise geographical identification of every shipyard, but it reflects a broad spectrum, not just of shipbuilders but of the essential supply industry, which is like a set of veins reaching right out across the whole United Kingdom. The shipbuilding strategy, by its nature, means that there is no part of the United Kingdom where shipbuilding takes place that should feel excluded by this: on the contrary, it is included and is integral to what we are trying to do. I hope that any shipbuilding entity in the north-east will feel encouraged, will feel part of this and will feel that it wants to commit to this, with its industry partners, and engage with the Government on how this can all be taken forward. The right reverend Prelate will be aware that the Government currently try to help steel producers by producing an estimated pipeline of what steel orders may be and, in doing that, try to signal where manufacturers may want to be ready to investigate tendering for supply on a contract. I have already said that a number of ships are already committed to using British steel, but one of the technical issues is that not all types of steel are suitable for the particular type of ship being built, so there is the matter of finding suitable product.

[Lord Greenway (CB)]

My Lords, this refreshed shipbuilding strategy is heavily geared towards naval shipbuilding. Can the Government confirm my reading from it, that we have abandoned all thought of building what I would call ordinary cargo-carrying merchant ships in the future? If we are going to just concentrate on specialist vessels, that is all well and good, but we will not sell too many ships like the “Sir David Attenborough”, whereas ordinary cargo-carrying merchant ships often generate a lot of orders.

[Baroness Goldie (Con)]

The noble Lord is probably better aware than almost anyone in the Chamber of the diversity of shipyard production in this country and the types of ships that the existing yards are capable of producing. The strategy is about not only sustaining and encouraging these shipyards and shipbuilders but introducing the resilience necessary to let them be flexible. He is quite correct that some yards may not be suitable for constructing particular types of ship, and that is matter for individual yards, but it may also be the case, as we have seen, for example, both in Govan and in Rosyth, that the two companies, British Aerospace and Babcock, invested in the infrastructure there because they actually needed to change the physical imprint of what they had to make it suitable for the production of the particular ships they were going to build. This is an opportunity for thinking outside the box and I hope the strategy will encourage shipbuilders to be innovative, be explorative and see if they can investigate what they can do in the future, even if they have not been accustomed to doing it in the past.