BAE systems own three shipbuilding facilities in Britain – at Govan at Scotstoun in Scotland, and in Portsmouth. After the two Queen Elizabeth class aircraft carriers have been completed there is a noticeable gap in orders from the MOD, with the next programme likely to be the Type 26 Frigates due to begin a couple of years later. This gap means that it would be unprofitable to keep one of the yards running while there is no work, hence the likelihood of a closure.
Notably, BAE has performed poorly in the export market in recent years, only managing to receive orders from smaller countries for patrol vessels. Ships such as the Type 45 have not sold on the international market. By contrast countries such as France, Spain and Germany have extremely succesful export records. If only BAE had managed to sell even a few destroyers or frigates in the intervening years, British jobs might not be at risk.
Portsmouth is believed to be the most vulnerable, with 1,500 jobs at risk. There is a notion outside of Portsmouth that as it is in the South East, it can look after itself. As a result Portsmouth has always fared badly when it has come to defence cuts, compared to areas such as Plymouth and Scotland, which not only have relatively few other opportunities for employment, but have also managed to deploy much stronger political arguments. The previous Labour government went to great lengths to protect scottish shipbuilding, due to the close poximity of the scottish shipyards to the constituencies of several high-profile Labour MP’s. Yet, with Alec Salmond’s hot air regarding independence, not to mention the SNP’s anti-military stance, would it not be sensible for BAE – a BRITISH, ie, London company – to secure itself in England?
It’s cruelly unfair that Portsmouth always gets the thin end of the wedge when it comes to cuts. In the post-war period Portsmouth did much to diversify and reduce its reliance on the Royal Navy and the Dockyard, developing new industries, such as heritage, tourism, technology and services. Plymouth, on the other hand, did very little. As a result Plymouth is still reliant on the Navy, and has long been protected from cuts.
Rather worrying times for anyone working for BAE in Portsmouth.
- BAE boss says shipyard may close (bbc.co.uk)
- BAE confirms it is considering closing shipyard (guardian.co.uk)
- BAE considering shipyard closure (express.co.uk)
- Defence giant BAE considers shipyard closure (itv.com)
- Axe looms over BAE shipyards (telegraph.co.uk)
- BAE considering shipyard closure (standard.co.uk)
- Scottish News: BAE considering shipyard closure (acadvertiser.co.uk)