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Harland & Wolff
19 December 2024
Lead MP
Jonathan Reynolds
Debate Type
Ministerial Statement
Tags
DefenceEmployment
Other Contributors: 20
At a Glance
Jonathan Reynolds raised concerns about harland & wolff in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
The Minister informed the House that, subject to approvals, a commercial deal has been reached between Navantia UK and Harland & Wolff to protect jobs, drive investment and secure the future of the workforce. This acquisition will safeguard around 1,000 jobs across four shipyards in Belfast, Arnish, Methil, and Appledore. He highlighted that the previous government had considered providing a guarantee or liquidity loan to Harland & Wolff but decided against it due to significant financial risks for taxpayers without job protection guarantees. The deal will secure the delivery of the fleet solid support contract with the Ministry of Defence (MoD), ensuring no changes to the minimum requirements for UK-only build as part of this agreement. Navantia's investment in Harland & Wolff is seen as vital for strategic alignment with NATO and British shipbuilding capabilities. The Government are committed to supporting the national shipbuilding industry, which supports 42,500 jobs and contributes £2.4 billion annually to the economy. Key procurement programmes such as Type 26 anti-submarine warfare frigates and Type 31 general purpose frigates have brought significant investment to UK shipyards.
Epping Forest
Question
The MP inquired about how many more ships Navantia will build at Harland & Wolff, considering the acquisition includes a shipbuilding contract and yard. He also asked if there are plans to establish new factories for future projects.
Minister reply
The Minister responded that Navantia UK is the prime contractor of the Team Resolute consortium tasked with building three logistics support vessels for the Royal Navy under the fleet solid support programme. The company will maintain a substantial portion of UK-only build as part of this deal, ensuring continuity and investment in British shipbuilding.
David Simpson
DUP
Upper Bann
Question
The MP sought clarity on whether there are any plans to increase Harland & Wolff's workforce or expand the company's operations post-acquisition.
Minister reply
The Minister assured that Navantia UK has committed to working closely with relevant unions to protect existing terms and conditions for workers, ensuring job security and potential future growth. The Government will continue supporting the shipbuilding industry through key procurement programmes.
James Davies
Con
Montgomerys
Question
The MP asked about the financial guarantees provided to Navantia UK during contract negotiations, including whether there were any conditions tied to these assurances.
Minister reply
The Minister clarified that no taxpayer funds have been committed as part of this deal. The acquisition was made on commercial terms by Navantia UK, ensuring a sustainable and market-based solution for Harland & Wolff's future.
Gavin Newlands
SNP
Paisley and Renfrewshire North
Question
The MP expressed concern over potential job losses outside Belfast and the overall impact on Scottish employment. He asked if there were any plans to address these concerns.
Minister reply
The Minister assured that the deal protects jobs across all four shipyards, including those in Scotland. The Government's commitment includes supporting vibrant, growing, and successful shipbuilding and fabrication industries throughout the country.
David Burrowes
Con
Enfield, Southgate
Question
The MP questioned whether there would be any restrictions or limitations on UK shipbuilding capacity due to this acquisition.
Minister reply
The Minister emphasised that the deal maintains a significant portion of UK-only build requirements, ensuring continued sovereign shipbuilding capability and investment in British industry.
Andrew Griffith
Con
Arundel and South Downs
Question
Asked about the certainty of in-service date, funding commitments to Navantia, state aid clearance status, UK-based supply chain activity, future work packages, and assurances for Harland & Wolff after the FSS deal.
Minister reply
Replied that there is no large delay expected, no direct Government funding provided, compliance with Windsor framework, no additional work packages promised beyond those originally envisaged. Emphasised the importance of a vibrant and competitive shipbuilding sector.
Liam Byrne
Lab
Birmingham Hodge Hill and Solihull North
Question
Congratulated on securing the deal, asked about contract value changes and future for Harland & Wolff after FSS delivery.
Minister reply
Acknowledged that there was no change in UK-based content of the contract. Guaranteed jobs in Belfast for three years and two years in other yards.
Steve Darling
Lib Dem
Torbay
Question
Congratulated on the decision, asked how to hardwire long-term support for shipping industry.
Minister reply
Emphasised an ambitious industrial strategy covering key sectors and delivering consistency.
Emma Lewell-Buck
Lab
South Shields
Question
Asked if there is any scope to accelerate the delivery of new FSS ships to close capability gap.
Minister reply
Acknowledged the point but referred the matter to colleagues in the Ministry of Defence.
Mark Pritchard
Con
The Wrekin
Question
Welcomed the statement and protection of the fleet solid support programme. Asked about reducing UK’s reliance on imported steel in a dangerous world to ensure timely ship delivery.
Minister reply
Acknowledged the challenge with UK's two remaining blast furnace sites, noting improvements made at Port Talbot but challenges at Scunthorpe. Emphasised the need for capabilities like plate mill and direct reduced iron production.
Richard Baker
Lab
Glenrothes and Mid Fife
Question
Thanked the Government for securing a deal which saved jobs in his constituency, asking about future collaboration to ensure the yard's potential is fulfilled.
Minister reply
Expressed gratitude for MP’s support. Highlighted the need for continued cooperation among all levels of government, trade unions and stakeholders to deliver on UK’s renewable energy ambitions.
Bernard Jenkin
Con
Harwich and North Essex
Question
Congratulated the Government but asked when we will get their defence industrial strategy, emphasising the need for self-sufficiency in face of eastern European threats.
Minister reply
Acknowledged the importance of reindustrialising the defence sector. Mentioned work on environmental, social and governance criteria to ensure investment into defence companies.
Amanda Martin
Lab
Portsmouth North
Question
Asked about the wider implications for the UK economy and specifically for shipbuilding and defence sectors.
Minister reply
Emphasised the importance of shipbuilding heritage in Portsmouth and noted increasing needs for different types of vessels in energy sector, highlighting potential for future growth.
John Cooper
Con
Dumfries and Galloway
Question
Asked if Navantia raised concerns about the Employment Rights Bill during negotiations.
Minister reply
Stated that employment rights in continental Europe differ from UK. Mentioned changes in the bill raise terms for lowest-paid workers, with no specific concerns from shipbuilding unions.
Mark Sewards
Lab
Leeds South West and Morley
Question
Congratulates the government on saving jobs but asks about progress on a modern industrial strategy and its impact on future growth.
Minister reply
Acknowledges the response to the Green Paper, highlighting over 20,000 contributions. Mentions the first meeting of the Industrial Strategy Advisory Council with key industry representatives. Emphasises cross-party support for the national interest.
Alison Griffiths
Con
Bognor Regis and Littlehampton
Question
Asks if the Secretary of State can clarify that final assembly will take place in Belfast rather than Spain.
Minister reply
Clarifies that provisions in the original contract agreed by the previous government remain unchanged. Highlights the positive outcome of saving all four yards and ensuring job security for years.
Chris Law
SNP
Dundee Central
Question
Expresses gratitude, wishes a merry Christmas, asks about workers' current terms and conditions, and inquires about future sustainable footing.
Minister reply
Confirms the protection of two Scottish yards for two years with 90% job guarantees. Emphasises investment in these yards to ensure long-term competitiveness.
Bob Blackman
Con
Harrow East
Question
Congratulates on today's announcement and asks about further defence and commercial opportunities for Harland & Wolff.
Minister reply
Reiterates that no additional work packages have been promised but sees real opportunities in fabrication, maintenance, energy, and supply chain diversification.
Jim Shannon
DUP
Strangford
Question
Welcomes the announcement as good news, asks about skills investment and R&D support across the UK.
Minister reply
Acknowledges the importance of R&D in maintaining a competitive edge. Highlights the need for core funding between government and industry to support innovation.
Shadow Comment
Andrew Griffith
Shadow Comment
The Shadow Secretary of State welcomed the deal but raised several questions regarding the fleet solid support ships' in-service date, any government funding provided for Navantia, state aid clearance status, changes to contract terms, supply chain activity percentage, work packages transfer from UK locations, and final assembly location. He also questioned the timeline for reaching 2.5% defence spending and publication of the Strategic Defence Review.
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