Scots firms secure £200m of navy contracts

Published on Thursday 14 January 2010 21:36

SCOTTISH firms have won defence contracts worth nearly £200 million, as the government moves to quash fears that planned super aircraft carriers could be axed.

The Ministry of Defence announced contracts worth 333m yesterday after days of speculation that the 5 billion carriers would be sacrificed in looming spending cuts.

But yesterday's deals pointed to a stay of execution for the navy super carriers HMS Queen Elizabeth and HMS Prince of Wales, which will boost the Rosyth dockyard in Fife and surrounding businesses.

Ship Support Services Ltd, based near Rosyth, was awarded a contract for 105m for paint and scaffolding for the build process.

Glasgow family company, Henry Abram & Sons, also won an 85m contract to deliver "blocks" built at shipyards around the UK to Rosyth, where they will be pieced together by an alliance which includes BAE.

Michael Abram, from Henry Abram & Sons, said: "The scope of work is challenging but we have worked very well with BAE for many years."

The firm, which employs 22 people, is planning to recruit naval architects, structural engineers, design engineers, graduates and administration staff.

Ian Davidson, the Labour MP for Glasgow South West, said: "It reminds us of the importance of the UK in keeping our shipbuilding industry alive and shows the Labour government is committed to building these carriers."

Around 1.1bn of sub-contracts have been awarded so far for the shipbuilding, with a total value of 252m to ten Scottish companies, on top of the main contract managed by the Aircraft Carrier Alliance with its headquarters in Rosyth.

Scottish Secretary Jim Murphy said: "This underlines the importance of the UK defence industry to Scotland and how the MoD's shipbuilding programme in Scotland underpins real jobs, real apprenticeships and a real future."

Defence equipment and support minister Quentin Davies said that the build phase was already on track and that it would "contribute to thousands of jobs throughout the supply chain, in addition to the thousands of jobs at the main shipyards which are building the ships".

He said the carriers are "the cornerstones of the Royal Navy of the future".

The new Queen Elizabeth class aircraft carriers, the largest and most powerful warships ever to be constructed in Britain, have suffered a series of delays, and a revised costing is currently with the Treasury awaiting approval.

Analysis:

Tim Fish: Carriers essential for future defence of UK