Shipbuilding

Thomas Docherty Excerpts

Monday 19th March 2012 Commons Chamber

[Mr Prisk]

The hon. Gentleman is absolutely right to say that we have seen a wind down so that over the next 10 to 15 years there will be a substantial loss through retirement of a whole generation of engineers. We do not see this is a necessity, however, but as an important part of shifting the balance of the economy. We want to see a strengthening in apprenticeships, so I would go further than the hon. Gentleman suggested. We believe that supporting supply chains and technological innovation is the way in which shipbuilding in the UK and elsewhere can keep ahead, so we need to make those investments.

Let me deal specifically with defence, on which the hon. Gentleman focused—not surprisingly in view of his constituency. It is, of course, a significant market for the UK’s shipbuilding sector. Supporting this, the Royal Navy is in the middle of a major building programme of both warships and submarines. Looking at the broader industrial issue here, partnering and industrial collaboration are key elements of the programme.

The warship programme is a significant investment, including six Type 45 destroyers, five Astute class submarines and two Queen Elizabeth class carriers, and they are all being delivered by UK shipyards. Subject to Ministry of Defence approval, new contracts are anticipated for two further Astute class submarines, the future strategic deterrent submarine and a new generation of frigate—the Type 26 global combat ship. The Type 26 frigates will form the backbone of the Royal Navy until the middle of this century and, I suspect, beyond. It is clearly too soon to speculate on precisely where the ships will be built, but I will say that the programme provides a real opportunity for strong ties to be formed between the United Kingdom Government, the Royal Navy and British industry as it progresses.

The work on the Queen Elizabeth class carriers, which it is important to consider in this context, has brought about a reinvigoration of the apprenticeships programme on the Clyde. Some 270 apprentices will be employed by BAE Systems, and 154 by Babcock in Rosyth.

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

As the Minister will know, refitting the two carriers in Rosyth would give my constituency 50 years of work. In the light of the sensitive nature of carrier work, will he confirm that if Scotland were to leave the United Kingdom, my constituency would not be able to compete with English yards on a level playing field?

[Mr Prisk]

All the Royal Navy’s current warships are built in the United Kingdom. Scotland has a strong and skilled defence sector, and it would make strong bids, but if Scotland were not part of the United Kingdom, the sector would clearly be pitching for business in what is a very competitive international market. I am sure that Members on both sides of the House understand that.

Let me say something about the points raised by the hon. Member for Glasgow North West about BAE Systems’ shipyard work. Like the future implications for the yards, those issues are a matter for the company. The Ministry of Defence has made it clear that it expects the BAE Systems maritime naval ships terms of business agreement to provide a strong foundation for it to compete for non-MOD work, both here and abroad, but it is for the company to retain the capacity that it deems necessary to meet the demands made of it, and to transform the sector as it feels appropriate.

What the Government will do is ensure that the United Kingdom provides an economic and business environment within which businesses, shipbuilding or otherwise, can flourish. The defence White Paper, which was published on 1 February, explains how we will promote exports related to defence and security—for example, by ensuring, when we work with industry, that export potential is considered at an earlier stage. All too often in the past Governments have not done that properly, regardless of their political persuasions.

Let me say something about the MARS programme. In the context of the fleet tankers, the hon. Gentleman referred to speculation in reports about remarks attributed to the Under-Secretary of State for Defence, my hon. Friend the Member for Mid Worcestershire (Peter Luff). I can confirm that those remarks were wrongly attributed, and that my hon. Friend did not make them.

I share the hon. Gentleman’s frustration about the fact that no UK contractor bid for the final contract, but the Government cannot force contractors to bid. We are not in that position, nor should we be.

The hon. Gentleman mentioned previous commitments involving warlike vessels, but these are not warlike vessels. The commitment to which he alluded—that complex Royal Navy warships will continue to be built in UK shipyards—remains. I hope that that gives him some comfort.