Harland and Wolff problems highlight serious issues with the FSSS procurement process

The Government has announced that it will not guarantee a loan to Harland and Wolff, the Belfast-based shipyard.

The company had applied for help with the loan after getting into financial difficulties.

Recently the previous Government gave the contract to build Fleet Solid Support Ships (FSSS) to Navantia, a Spanish consortium, after the bid promises more than a thousand jobs in Belfast. prospect had argued that it would make more economic sense for the contract to go to a UK-led consortium, guaranteeing more work and retaining the design element in the UK.

Sue Ferns, Senior Deputy General Secretary of Prospect union,said:

“The problems at Harland and Wolff will be hugely worrying for anyone working for the company.

“One thing it highlights is that the process for deciding the Fleet Solid Support Ship contract conducted by the last government, was hugely flawed and based on promises of UK jobs without a proper assessment of their deliverability.

“It is vital that the government holds Navantia to the promises in their bid around UK jobs so that our money is not simply spent providing quality jobs to Spanish shipyards. This should involve engaging with UK defence contractors, include those who were part of the rival Team UK bid, to see how this can be achieved.

“Any future contract of this kind must be awarded on the basis of Design, Build, Maintain in the UK so that our economy and communities reap the rewards of defence spending.”