Commons Sense

House of Commons · Ministers' Questions

Scotland’s Shipbuilding Industry

Wednesday 3 November 2021 · 5 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 2 Partly answered 2 Not answered 0

Key points

  • UK Government has delivered six Type 45 destroyers, two aircraft carriers, and five offshore patrol vessels for Scotland's shipbuilding industry in the past 15 years.
  • The Type 31 frigate project supports 1,250 jobs and 150 apprenticeships, contributing to the Union's security and prosperity.
  • Disappointment is shared over the Scottish Government-owned shipyard's inability to compete for a Scottish ferry building contract, impacting local communities.

Topics (select to filter)

Questions & Answers

Q1 Jack Lopresti Con
Employment Scotland Business & Trade
Context

The question arises from concerns about job creation and investment in Scotland's shipbuilding industry. The MP seeks to understand specific actions the Department is taking.

Question

What steps his Department is taking to create jobs and encourage investment in Scotland's shipbuilding industry?

Answer from Alister Jack

The UK Government's commitment to shipbuilding in Scotland is unwavering. Over the past 15 years, we have delivered: six Type 45 destroyers, launched from the Clyde; two aircraft carriers, assembled at Rosyth; five offshore patrol vessels, built on the Clyde; and we have ensured a bulging order book for the future—eight Type 26 frigates have been ordered, with three of them already under construction on the Clyde, and five Type 31 frigates have been ordered and are destined for Rosyth.

Answered
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Q2 Sarah Atherton
Defence Scotland
Context

The MP notes the first deal cut for HMS Venturer, a Type 31 frigate, which supports significant employment in Scotland. She seeks the Secretary of State's agreement that such projects are integral to the Union.

Question

I am pleased that the first deal has been cut for the Type 31 frigate, HMS Venturer, which is being built at Rosyth. With the fleet's construction due to support 1,250 jobs and 150 apprenticeships, does my right hon. Friend agree that such projects are integral to the Union?

Answer from Alister Jack

I absolutely agree: the shipbuilding industry makes a huge contribution to strengthening the Union. It directly supports UK security and prosperity, and it supports 25,200 jobs across the UK and 7,000 direct jobs in Scotland. I was fortunate to visit BAE Systems in Govan recently and I met the excellent workforce building HMS Glasgow; I am assured that she will be a very fine ship.

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Q3 Jack Lopresti Con
Scotland
Context

The MP expresses disappointment over the inability of Scotland's state-owned shipyard to compete for a Scottish ferry building contract and fears that this may result in job losses.

Question

Does my right hon. Friend share my disappointment that Scotland's state-owned shipyard could not even compete for a Scottish ferry building contract, and does he note that the Scottish Government's failure may cost many shipbuilding jobs?

Answer from Alister Jack

I do share my hon. Friend's disappointment that the Scottish Government-owned shipyard was unable to compete in the tenders for two new ferries for Scotland. That disappointment is shared by the whole of Scotland, particularly island communities, who are suffering every day as a result of the SNP's self-inflicted ferry fiasco.

Partly answered

Not addressed: The specific concern about job losses was not addressed with concrete figures or actions.

How: Disappointment, Self-Inflicted

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Q4 Alan Brown SNP
Scotland Energy
Context

The MP highlights the Orbital O2 tidal generator and its potential to scale up with appropriate funding. He seeks assurance from the Secretary of State that this will be raised with BEIS.

Question

The Orbital O2 tidal generator was the first marine vessel launched from Dundee in 40 years. Wave and tidal offer massive opportunities for the wider maritime industry in Scotland. All that is required for these technologies to scale up is a ring-fenced pot of money in the forthcoming contracts for difference auction. Will the Secretary of State, given his power, raise this with the Department for Business, Energy and Industrial Strategy to make sure that that happens? I would be happy to meet him.

Answer from Alister Jack

Yes, and yes.

Not addressed: The question was not addressed with specifics on raising issues or meeting details.

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Q5 Chris Elmore Lab Bridgend
Scotland
Context

The MP raises concerns about the Scottish Government taking over Ferguson Marine, with significant cost overruns and delays. He questions if this represents value for taxpayers and asks the Secretary of State to raise the issue with Scottish Ministers.

Question

In 2019, the Scottish Government took shipbuilding company Ferguson Marine into public ownership. The yard was supposed to deliver two ferries by the end of 2019 at a cost of £97 million. The ferries still have not been delivered and the total cost has ballooned to more than double the original budget, leaving islanders without new ferries and taxpayers footing the bill. As we have just heard, rather than now using the shipbuilder to build more ferries, they are sending the contracts abroad to create jobs in other countries. Does the Secretary of State think that that represents value for money for Scottish and UK taxpayers? If he does not, will he raise the issue with Scottish Ministers, because taxpayers really do deserve better?

Answer from Alister Jack

The hon. Gentleman makes a very good point. The Scottish Government's incompetence in this area has cost the taxpayer very, very heavily. Eleven organisations responded to the original procurement process. The three chosen to tender were shipyards in Romania, Poland and Turkey. I would have preferred the Scottish Government to show some loyalty to UK shipyards, even if their own one could not fulfil the contract.

Partly answered

Not addressed: The specific concern about value for money was not addressed with concrete figures or actions.

How: Incompetence, Loyalty

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