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PARLIAMENTARIANS FORECAST A VIABLE FUTURE SHIPBUILDING ON THE CLYDE

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by Bill Heaney

Shipbuilding and Clydeside were synonymous for most of last century, but the industry is now a shadow of its former self.

But could Govan and Greenock, Dumbarton and Clydebank  compete with European yards in the 21st century?

Glasgow Labour MSP Paul Sweeney asked the Scottish Government what recent assessment it has made of the finance available for commercial shipbuilding projects at Scottish shipyards.

And how the competitiveness of this compares with that of other European nations with commercial shipbuilding industries.

Scottish Labour MP Paul Sweeney outside St Stephen’s Entrance to the Houses of Parliament, London.

If you know the history … you might, like MSPs Kate Forbes and Paul Sweeney, forecast a viable future for shipbuilding on the River Clyde. 

The Deputy First Minister and Cabinet Secretary for Economy and Gaelic, Kate Forbes, replied that the SNP government was firmly committed to securing a sustainable, long-term future for shipbuilding in Scotland.

She added: “We are actively engaging with the United Kingdom Government’s National Shipbuilding Office, which is exploring potential strategies for targeted financial interventions that may take place across the wider public sector and in the private finance space, to ensure that shipbuilding companies in Scotland remain competitive on a global scale.

“We also continue to engage with the UK Government on the review of the national shipbuilding strategy, emphasising Scotland’s strengths in shipbuilding and maritime technology.

“Paul Sweeney and I were both at an event yesterday that demonstrated how strong the Scottish shipbuilding sector is.”

Paul Sweeney said he shares Kate Forbes’ enthusiasm and the impression that was created yesterday by the event at Rosyth dockyard to cut the first steel on the fourth Royal Navy type 31 frigate, HMS Bulldog.
He added: “Shortly afterwards, the second ship in the class, HMS Active, was rolled out of the new indoor shipbuilding hall in dramatic fashion.

“Scotland is now at the forefront of Europe’s largest naval shipbuilding programme, but the contrast with the lack of commercial shipbuilding activity is stark.

“The main reason for that is the lack of state-backed finance for commercial shipbuilding projects. Germany has used state-backed finance for shipbuilding for at least 30 years.

“Key instruments include the commercial interest reference rate ship financing programme, administered by the German state investment bank, which offers long-term fixed-rate loans for buyers of German-built ships.”

He asked Ms Forbes to commit to establishing  a commission that would be a Government-led effort to build a similar state-backed financing scheme in Scotland that would give confidence to our remaining small commercial shipyards, including Ferguson Marine (Port Glasgow) Ltd.

Kate Forbes replied: “I agree with Paul Sweeney that the strength of the workforce and the pipeline of orders that are coming through on the defence side are indicative of how much respect there is globally for the skills of Scottish shipbuilders.

“On the point about financing, there are certainly options for us to consider, through the enterprise agencies and the Scottish National Investment Bank.

“On shipbuilding in particular, there is an opportunity to work closely with the UK Government’s National Shipbuilding Office to ensure that the Scottish shipbuilding industry benefits from the national and international opportunities of its shipbuilding strategy.

“We will continue to engage with the NSO, and I am more than happy to keep Mr Sweeney updated on the progress that we make.”

Stuart McMillan (Greenock and Inverclyde) (SNP) asked: “Does Kate Forbes agree that it is vital that, in supporting the shipbuilding industry in Scotland, the Scottish Government works to deliver economic and social best value, given the history and the heritage of the industry and the industrial capability and capacity that it represents?”
Kate Forbes told MSPs: “We absolutely recognise the economic and the social impact of the industry. Stuart McMillan, too, has recognised its social impact through the strength with which he has represented Inverclyde and the Ferguson Marine shipyard.
“I was delighted to meet the GMB representative Alex Logan, along with the First Minister, in the past few days, off the back of an invitation from Stuart McMillan, to understand just how critical it is that we retain those skills.”
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