‘Economically illiterate’ to build Royal Navy supply ships abroad

Linda J. Dodson

It would be “economically and industrially illiterate” for a £1.5bn contract to build new supply ships for the Royal Navy to be sent abroad, MPs have heard.

A Defence Select Committee hearing on industrial and procurement policy for military equipment was warned a deal to build up to three Fleet Solid Support (FSS) ships must be awarded to British shipyards to guarantee the country’s ability to produce vessels.

Garry Graham, deputy general secretary of union Prospect, said the FSS contract was “totemic” in showing how the UK fails to deliver what he called a “coherent” strategy when it comes of supporting British industry.

“I can’t imagine other nations sending a contract like the FSS abroad, it is economically and industrially illiterate,” he said. “During the Covid crisis around our European competitors we see them bringing contracts forward to be fulfilled in their domestic markets and that to be a driver for economic change in their own economies.”    

The contract to build the 40,000-tonne FSS ships – which help keep the Navy at sea by supplying them with ammunition and food – was halted last year because bidders could not meet the budget.

Last month, The Telegraph revealed how foreign companies were invited to take part in “market engagement” about the deal as the Ministry of Defence tries to get it under way again.

Unions have been battling to make sure the vessels are built in UK shipyards. They argue it would create 1,800 jobs directly and is the only major naval construction project in the pipeline.

However, the Government has previously argued that under EU procurement rules the contract has to be tendered internationally. As the FSS ships are not classified as warships, as they are part of the Royal Fleet Auxiliary. 

Ross Murdoch, the GMB union’s national shipbuilding officer, said: “There is speculation about other projects but in reality the FSS is the only game in town.”

The Government-commissioned report on a national shipbuilding strategy from industry veteran Sir John Parker three years ago warned that without a “steady drumbeat of work” for UK yards, they faced a boom and bust cycle that would require expensive scaling up and down.

Mr Murdoch also called on Boris Johnson to deliver on his promises to support the sector. Last year the Prime Minister pledged to “bring shipbuilding home” and last month said the reopening of the Appledore yard, which had been closed for 18 months, would “drive forward our ambitions to become a shipbuilding superpower”.

The union chief added: “We need to see the rhetoric turned into reality.”

Source Article

Next Post

Business calls for Covid-style backing in the face of a no-deal Brexit

As Britain’s trade talks with the European Union edge closer to collapse, the Chancellor’s autumn headache swells. The Budget will need to deal with a Covid-19 jobs crisis that is expected when the furlough scheme ends in October, as well as cushioning the blow to businesses hit by higher tariffs and non-tariff barriers […]

You May Like