Commons Sense

House of Commons · Westminster Hall

Shipyards: Economic Growth

18 March 2025 · 12 other contributors · 12,169 words

Opened by Richard Baker Lab Glenrothes and Mid Fife

Responding minister: Sarah Jones

EconomyBusiness & Trade

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

Read the full transcript on Parliament.uk

At a glance

Richard Baker raised concerns about shipyards: economic growth in Westminster Hall. A government minister responded.

Key points

  • Concerns raised about the potential closure of shipyards in the UK, affecting workers and communities in areas like Methil, Belfast, Appledore, and Arnish.
  • Richard Baker asks the government to demonstrate more ambition for Scotland's shipyards and direct future investments towards them, citing their significant economic impact.
  • The minister acknowledged the government's efforts involving multiple departments and the Prime Minister's intervention to protect skilled talent and future contracts at Harland and Wolff.

Key requests to Government

Richard Baker asks the government to show more ambition for Scotland's shipyards and ensure future investments and contracts are directed towards them. He emphasizes the strategic role of shipyards in promoting economic growth, highlighting that their economic output was £2.7 billion in 2024 with a 72% increase between 2019 and 2024.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Richard Baker Lab Glenrothes and Mid Fife

Shipyards are iconic symbols of the UK's industrial heritage, and their closure can cause significant economic and social impact. The Methil yard faced real threats of closure shortly after the current government took office, affecting not only its workers but also those in other Harland and Wolff yards like Belfast, Appledore, and Arnish. Despite efforts to secure a deal for Navantia UK to take on all four yards, there is disappointment over yesterday’s announcement that a £175 million contract for seven loch-class vessels did not go to Scottish shipyards.

Other contributors (12)
  • Alison Hume Lab Scarborough and Whitby

    Parkol Marine Engineering has more than 70 employees and contributes significantly to the local economy by offering apprenticeships and providing opportunities. It struggles with capacity issues due to outdated infrastructure.

  • Edward Morello LD West Dorset

    Dorset's marine industry generates £483 million in gross value added and supports over 8,000 jobs. There is a skilled worker shortage, especially for women who make up only 2% to 5% of hands-on yard workers. Initiatives like Women in Boatbuilding are needed to promote diversity and economic growth.

  • Greg Smith Con Mid Buckinghamshire

    Acknowledges the critical role of shipbuilding in British economic strength and national security, highlighting previous Conservative government's support for the sector through job guarantees, upskilling initiatives, and defence infrastructure reinforcement. Criticises current Labour Government’s lack of new contracts and strategic direction.

  • Irene Campbell Lab North Ayrshire and Arran

    Highlighted issues with Scotland's ferry fleet, including delays and unsuitable ships that do not fit local ports, affecting island communities' economies and access to services. Urged for robust planning in future procurement processes.

  • Jamie Stone LD Caithness, Sutherland and Easter Ross

    Asked for more details about the ferry contract issues highlighted by Patricia Ferguson. Historically, North sea oil construction brought thousands of jobs to remote areas like Nigg yard, reversing depopulation trends. The recent announcement of £55 million for the port of Cromarty firth is welcomed.

  • Jim Shannon DUP Strangford

    Praised the role of Harland and Wolff in Northern Ireland, highlighting its history and importance. He mentioned that the company has a bright future with new ownership, although employees are concerned about job security. Emphasised the importance of continued investment in shipbuilding to ensure its future success and thanked colleagues for their practical involvement.

  • John Grady Lab Glasgow East

    Critiqued the SNP's management of the ferry service in Scotland, highlighting difficulties faced by constituents and others due to the deteriorating fleet.

  • Laurence Turner Lab Birmingham Northfield

    Acknowledges Richard Baker's advocacy for workers at Arnish and questions whether awarding defence orders internationally, rather than domestically, has caused uncertainty in the sector that needs long-term planning.

  • Richard Quigley Lab Isle of Wight West

    Emphasised the importance of shipbuilding to coastal communities like the Isle of Wight, highlighting its role in economic growth and connectivity. He discussed local boatbuilders such as Wight Shipyard contributing to maritime innovation.

  • Patricia Ferguson SNP Carrick, Cumnock and Doon Valley

    Recalled the historical significance of shipbuilding on the Clyde to Glasgow's economy and culture, noting its decline over time but calling for renewed support for the industry. Challenged the hon. Member for Workington's point that Harland and Wolff's problems arose after a Labour Government was elected, highlighting that the Labour Government managed to save the shipyard within six months of coming into office.

  • Sarah Jones Con Inverness West

    Acknowledged the importance of ferry services for people’s lives and wellbeing. Emphasised the need for better management of shipbuilding and defence spending, and discussed reforms to apprenticeships and green shipbuilding opportunities.

  • Torcuil Crichton Lab Na h-Eileanan an Iar

    Tributes the workforce at Ferguson Marine who lost out on a small vessel replacement programme, proposing that phase two of the programme should be rolled into phase one to ensure vessels are built by Scottish shipyards.

Government Response

Sarah Jones

The Minister for Industry

Acknowledged the dilemma faced by the new Government in deciding whether to provide financial support immediately or carefully assess the situation. Emphasised the collective effort involving multiple Secretaries of State and officials from different departments, including the Prime Minister's intervention. Highlighted the importance of protecting skilled talent and future contracts at Harland and Wolff. Addressed concerns about procurement practices and the awarding of a contract to a Polish shipyard, mentioning ongoing work on the Procurement Act 2023. That commitment has been reflected by the actions the Government have taken, including the intervention to save Harland and Wolff and our investment plans to ensure shipyards have a great role in the future. I could not agree more with the points that hon. Members made about the need to invest in shipbuilding in Scotland. Saving the Methil yard was absolutely essential for me. Clyde-built ships are synonymous with quality and reputation, and we aspire to that across the UK. It is regrettable that the Scottish Government have not shown commitment or support, but this Labour Government has done so since coming into office. The previous Government had failed to act on Harland and Wolff, but our clear strategy succeeded in saving the yards. There is a consensus in the Chamber for investing in shipbuilding and shipyards, with ambitions for renewables and defence. Apprentices will look forward to a bright future in our shipyards.

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