A £6 billion contract to build three floating docks for the nuclear deterrent at HM Naval Base Clyde will be kept in the UK, the Government has announced, in a move expected to support thousands of jobs.
The docks for Faslane on the Clyde could provide a major opportunity for the Methil shipyard in Fife, which is owned by Spanish state-owned firm Navantia. However, the final location will be decided through a formal procurement process.
Defence Secretary Wes Streeting told the Labour conference in Liverpool that the Ministry of Defence would be central to the Government’s plans to reindustrialise Britain.
“The contract to build the docks for our nuclear subs, our ultimate deterrent – £6billion worth of work – today we commit to that contract staying in this country, supporting thousands of British jobs for years to come,” he said.
Mr Streeting said there was no economic or moral reason for the defence sector to employ thousands of workers from overseas while one million young people in the UK were out of work.
Chancellor John Healey said the contracts for the new submarine docks would help defend the country “for decades to come”. He also announced that Rolls-Royce would invest £300 million across plants in Derby, Bristol, Glasgow and Rotherham.
Scottish Secretary Douglas Alexander said Methil had been under immediate threat of administration when Labour came to power, before a deal brought it into Navantia’s ownership.
“Navantia have been looking for us to guarantee work going forward,” he said. “What we heard from John Healey today was a commitment that we will build the new floating docks for Faslane here in the United Kingdom.”
Mr Alexander said the announcement represented a “huge opportunity” for Methil and other shipyards across the UK, adding that he was optimistic about what it could mean for Scotland.
Asked whether he could guarantee that the work would be carried out north of the Border, he said a proper procurement process still had to be followed, but that he had “great confidence in Scottish workers and Scottish yards”.
