Shipyard plea

The problem goes back to the Attlee government in the 1940s, which introduced dividend limitation legislation, which meant that – no matter how badly renewal of their yards was needed after the war, or how much they invested to pay for it – shipbuilders could not pay a penny more in dividend.

The proof of this is that, in 1947, the Burntisland Shipyard was sold to Rio Tinto for less money than Burntisland had in the bank, but could not touch.

Scottish yards, therefore, laboured on with old, worn-out equipment, which was bad for labour relations as well as for productivity.

There ensued the era of demarcation disputes and strikes over completion bonuses.

Meantime, first the Netherlands and then West Germany offered 4 per cent government loans to build state-of-the-art shipyards to replace those destroyed in the war.

By the end of the 1960s the demand was for huge oil tankers, which the Clyde could only build and launch in halves then join together, because of the narrowness of the river. Far East yards designed for that work took a large share.

Whether Scotland becomes independent or not, it is very unlikely that there will be naval orders to keep two yards on the Clyde busy when their present orders are completed.

The order for Type 45 Destroyers was cut from 12 to six on cost grounds. To pay for the new carriers, with no planes to carry, the navy had to decommission a serviceable carrier that had planes, and will have to sell one of the new carriers.

The Type 26/7 Frigates are held up, waiting for someone to share the costs.

It seems to me vital that we and BAE Systems plans now to convert one of its two Clyde yards to civil work.

With sterling devalued, restraint in wages – and BAE Systems has plenty capital – there may never be a better time to plan this transformation.

We have had all our eggs in one basket for too long.

John Smart

Kinnedar Street

Lossiemouth