🚢 Shipyards: Economic Growth

• Shipyards’ Role in Economic Growth: The debate focused on the critical role shipyards play in the economic development of the UK, emphasizing their historical and potential future contributions.

• Harland and Wolff and Navantia UK: The government’s intervention to prevent the closure of Harland and Wolff was highlighted, with Navantia UK taking over operations across four yards, including Methil, Belfast, Appledore, and Arnish. This move was essential to save jobs and maintain the yards’ facilities and skilled workforce.

• Disappointment with Scottish Procurement: There was significant concern over a £175 million Scottish ferry contract awarded to a Polish shipyard instead of a Scottish one, particularly impacting Ferguson Marine. This decision was criticized as lacking ambition for Scotland’s shipbuilding industry.

• Economic Impact of Shipyards: In 2024, shipyards contributed £2.7 billion to the UK economy, with a 72% increase in output between 2019 and 2024. This growth was highlighted against a decline in the broader manufacturing sector.

• Future Opportunities in Defence and Renewables: Shipyards are seen as vital for future economic growth, particularly in defence and renewable energy sectors. The national shipbuilding strategy aims to deliver over 150 new vessels over the next 30 years, supported by increased defence budgets and investments in green technologies.

• Skills and Apprenticeships: The importance of investing in skills and apprenticeships was a key theme, with emphasis on the need to train young people and retain skilled workers. The debate praised initiatives like comprehensive training programs and the potential expansion of Forth green freeport to include Methil.

• Regional Impact and Concerns: MPs from various regions, including Scotland, Northern Ireland, and coastal England, discussed the importance of shipyards to their local economies. Concerns were raised about the lack of new contracts and clear strategic direction from the government, potentially threatening skilled jobs.

• Government’s Commitment to Shipyards: The minister outlined the government’s long-term plan for the shipbuilding sector, including reforming the apprenticeship levy, increasing defence spending, and supporting green initiatives. The government aims to use these strategies to bolster the shipbuilding industry’s growth and stability.

The session exhibits a moderate level of disagreement, primarily centered around specific policy decisions and criticisms rather than the overall topic of shipyards and economic growth. Here’s a detailed breakdown of the disagreements observed:

1. Criticism of SNP Handling of Shipyards and Procurement: Several Labour MPs, including John Grady and Irene Campbell, expressed strong criticism towards the Scottish National Party (SNP) for its handling of shipbuilding and ferry services in Scotland. Specifically, they mentioned the SNP’s decision to award a £175 million contract to a Polish shipyard instead of a Scottish one, arguing that it was a missed opportunity for Scottish shipyards (e.g., Ferguson Marine). This was a clear point of contention, with no representation from the SNP present to counter these criticisms.

2. Government’s Response to Harland and Wolff: There was a slight disagreement between the Labour Government and the Conservative Opposition regarding the handling of Harland and Wolff. Greg Smith, the Conservative spokesperson, suggested that the Labour Government was slow to respond to the financial difficulties at Harland and Wolff, implying a delay in financial support. In contrast, Labour MPs, such as Patricia Ferguson, defended the government’s actions, emphasizing that the Labour Government ultimately saved the company despite the challenges they inherited.

3. Procurement Policies: Disagreements also surfaced around procurement policies. Jamie Stone from the Liberal Democrats raised concerns about procurement rules affecting the ability to build components domestically, suggesting a need for policy adjustments. The Minister for Industry, Sarah Jones, responded by acknowledging the issue and indicating ongoing considerations of procurement policies, which shows some level of debate on this matter.

4. Apprenticeship and Skill Development: While there was general agreement on the importance of apprenticeships, there was a mild critique from Greg Smith about the effectiveness of the apprenticeship levy set up by the previous Conservative government. Sarah Jones responded by noting the government’s plans to reform the apprenticeship levy, indicating a point of disagreement on how best to support skill development.

5. Defense Spending and Shipyards: Richard Baker and Greg Smith expressed common ground on the potential for increased defense spending to benefit shipyards, with a minor disagreement on the pace of defense spending increases. This was not a significant point of contention but rather a nuanced difference in approach.

Overall, while there were several instances of disagreement, they were largely focused on specific actions and policies rather than the broader consensus on the importance of shipbuilding for economic growth. The disagreements were expressed respectfully, and there was a strong undercurrent of consensus on supporting the shipbuilding industry, which contributes to the moderate rating of 2.