The Westminster Hall session on shipyards' role in economic growth focused primarily on the historical significance and future prospects of UK shipbuilding. The debate, chaired by Christine Jardine, opened with Richard Baker from Labour representing Glenrothes and Mid Fife, highlighting the pressing need for governmental support in preserving shipyards, especially after the Methil yard faced potential closure. Baker stressed the economic contributions and heritage significance of shipbuilding across the UK, arguing it is pivotal to the national economy and local communities, especially in areas like his constituency which have economically revolved around shipyard operations for centuries.
Key contributors such as Torcuil Crichton and Laurence Turner emphasized the strategic importance of shipbuilding in national defense and economic growth, proposing practical solutions like direct awards for shipbuilding contracts to prevent foreign outsourcing. They criticized the Scottish Government's procurement decisions which favored international yards over local firms, especially noting a recent £175 million contract lost to a Polish company, impacting jobs in Scotland.
From 2019 to 2024, the shipbuilding sector's economic output grew by 72%, underscoring its resilience and strategic importance compared to an overall manufacturing decline.
Backbenchers like John Grady and Jim Shannon recounted the industrial decline's impact on communities, whereas others, including Edward Morello and Irene Campbell, spotlighted how shipbuilding supports local economies and the need to preserve technical skills and crafts. Many speakers advocated for bolstering industry through comprehensive government-backed strategies, especially investing in green and defense-related technologies.
Total jobs linked to the UK shipbuilding industry, illustrating its role in national employment and economic sustenance.
The Minister, Sarah Jones, closed by acknowledging the efforts undertaken to save key shipyards like Harland and Wolff, emphasizing the skilled workforce's crucial role, and outlining government plans to support shipbuilding, aligning with increased defense spending as a mechanism to secure long-term industry growth. Jones also noted the importance of a reformed apprenticeship system to address skill shortages, promising ongoing policy evaluations to promote domestic production strategies and support local businesses.
Overall, the debate highlighted bipartisan support for safeguarding and investing in shipbuilding as a valuable asset to the UK economy, backed by statistical evidence of the sector's substantial growth and contributions to national employment and GDP.
Planned increase in defense budget prioritized in the economic framework to bolster strategic industries like shipbuilding.
Value of the contract lost to a Polish company, depicting the immediate economic impact on the Scottish shipbuilding industry.
Outcome
The debate concluded with an agreement on the strategic importance of using shipbuilding to boost local economies and preserve industrial skills. The Government committed to continuing its efforts to support the sector by fostering better procurement strategies and investing in areas tied to defense and clean energy. This aligns with the UK's industrial strategy, seen as imperative for supply chain resilience and sustainable economic growth.
Key Contributions
Opened debate stressing shipbuilding's historical and economic significance.
Criticized Scottish Government's decision not to award a shipbuilding contract to a local yard.
Discussed implications of procuring UK projects through international tenders, leading to industrial uncertainties.
Highlighted the significance of the marine industry to Dorset's economy.
Expressed the historic and economic importance of shipbuilding to Glasgow.
Emphasized Harland and Wolff's historical importance to Northern Ireland.
Discussed ferry fleet inadequacies affecting local communities.
Recalled shipbuilding history in Glasgow and the Clyde’s contributions.
Highlighted shipbuilding's role in Isle of Wight's identity and economy.
Celebrated Whitby's historical shipbuilding pedigree and current contributions.
Praised diversification into offshore structures and floating facilities.
Acknowledged historical shipbuilding contributions to national defense and economy.
All content derived from official parliamentary records