Crisis casts doubt over £3bn warship work

Published on Monday 24 November 2008 21:19

WORK to build two giant aircraft carriers may be delayed by the UK's worsening economic position, it emerged yesterday.

Union leaders expressed concern after the Ministry of Defence confirmed that all its major programmes were under cost-cutting scrutiny.

Work is scheduled to begin next spring in Glasgow on HMS Queen Elizabeth and HMS Prince of Wales, the biggest warships to be built in the UK.

They are due to enter service in 2014 and 2016, but fears have been expressed on the Clyde that there could be "slippage" in the contract.

The defence ministry said: "The MoD is looking at all its major equipment programmes over the next ten years, with a view to bearing down on costs and making sure the front-line troops are properly supported.

"We hope this work will conclude soon, but at the moment no decisions have been made."

The green light for the warships – to be built at Glasgow, Rosyth, Portsmouth and Barrow-in-Furness, creating or underpinning a total of 10,000 jobs – was given in May by the then defence secretary, Des Browne.

Contracts worth about 3 billion were signed in July. They included 1.3 billion for giant sections to be built in Glasgow and Portsmouth, 300 million for major work at Barrow, and 675 million for bow sections and final assembly at Rosyth.

Last night, Jim Moohan , chairman of the shipbuilding and engineering unions in Scotland, said the government must honour its commitment to the project. He stressed that shelving of the plans would be disastrous for the wider economy.

"It would throw a dark cloud over what have been the most successful years on the Clyde in relation to the programme of work," he said.

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