Source · Select Committees · Scottish Affairs Committee
Recommendation 16
16
Acknowledged
Paragraph: 53
Recent developments have introduced uncertainty about some orders in the pipeline and whether it sets...
Conclusion
Recent developments have introduced uncertainty about some orders in the pipeline and whether it sets out a clear ‘drumbeat’ of orders needed to sustain Scottish shipyards. The Fleet Solid Support Ships and the National Flagship are two examples. There has been some media speculation about the Type 32s, although the UK Government have stated: “The strategic and long-term investments continue to be on track and will increase the capability and size of the fleet.”
Government Response Summary
The MOD recognizes the importance of a regular drumbeat of orders. The 30-year cross-Government Shipbuilding Pipeline of over 150 new vessels aims to provide a sustainable demand signal, encouraging industry investment. The NSO will update the pipeline at each multi-year Spending Review.
Paragraph Reference:
53
Government Response
Acknowledged
HM Government
Acknowledged
14, 15 & 16: The MOD fully recognises the importance of maintaining a regular drumbeat of orders across the Shipbuilding industry. The NSbS is clear that we do not want a return to the “boom and bust” cycles of historic Naval demand, but to provide a more sustainable demand signal from Government as a whole, providing the certainty required by industry. The 30-year cross-Government Shipbuilding Pipeline of over 150 new vessels aims to do just that. It sets out a huge range of opportunities for UK shipyards and the variety of vessels creates a baseline of volume to encourage industry investment in facilities, infrastructure, innovation and skills. As the pipeline spans a 30-year period, it is subject to change and the details of shipbuilding programmes in the later decades will come with time. Nonetheless, the NSO has committed to updating the shipbuilding pipeline at each multi-year Spending Review to ensure industry has a transparent pipeline of work to plan against. As the committee have noted, Scotland plays a vital role in defence shipbuilding with both Type 26 and Type 31 being built in Scotland. This is enabled by the strength of the local maritime infrastructure, skills, training and academic resources, which creates expertise in both naval and civil shipbuilding and engineering. The recent announcement of the Type 26 Batch 2 contract with BAE Systems reaffirmed the UK Government’s commitment to shipbuilding in Scotland, which will protect over 1,700 jobs in Scotland and more than 4,000 jobs across the wider UK maritime supply chain into the 2030’s. The Royal Navy’s Type 31 vessels are being built by Babcock in Rosyth. New facilities and upgrades to existing site infrastructure are being delivered at the shipyard. The New Assembly Hall has cost £31.5 million, which is part of a £60 million investment in Rosyth, in addition to the circa £100 million invested over the last decade. At its height, Babcock has said the programme will employ a workforce of around 1,250 highly-skilled roles in multiple locations throughout the UK, with around 150 new technical apprenticeships to be created. Babcock also envisage that the Design and Build of T31 will support a further 1,250 roles within the wider UK supply chain, including with small and medium enterprises. The Type 83 destroyer will replace the Type 45 destroyers and will be a key part of the Future Air Dominance System (FADS) that will provide area air defence and offensive strike options to the Carrier Strike Group from the mid-2030s. The department will continue to work with industry and will engage at the earliest opportunity to communicate the chosen procurement strategy. Turning to the Type 32 Frigate programme, this remains a key part of the future fleet. Royal Navy and Marines need. These ships will be UK-built, with the procurement route yet to be determined.