Select committee: Scottish Affairs Committee
Conclusion 82
Fourth Report - Defence in Scotland: military shipbuilding
Published 27 Jan 2023
Addressed to Scotland Office
Scottish Affairs Committee Defence in Scotland All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
The Confederation of Shipbuilding and Engineering Unions said workforce recruitment, skills and retention were “the biggest challenge for the industry and the enterprise collectively.”129 City of Glasgow College, one of the biggest trainers of Scottish shipbuilders, agreed that “Scottish shipbuilding cannot succeed without addressing chronic shortages in labour and skills.”130 Witnesses identified several challenges facing the shipbuilding sector in relation to skills. One example was demographic change, and the difficulties that the sector faces in replacing a large generation of employees due to retire in the next five to ten years.131 Shipbuilders and trade unions told us that the challenge did not lie so much in recruiting younger people and apprentices, but in recruiting and retaining more experienced personnel. Sir Simon Lister of BAE and John Howie of Babcock both identified the recruitment of steelworkers as a particular challenge, noting that these skills were increasingly in demand across many sectors of the economy.132 Sir Simon suggested one reason it might be difficult to recruit experienced staff may be that “the absence of a national shipbuilding strategy in the last 15 years has led to a quiet atrophy of the intake and the training of the next generation,” but added that “in the last five years, progress has begun to accelerate again.”133
From: Scottish Affairs Committee, Fourth Report - Defence in Scotland: military shipbuilding (HC 1096), 27 January 2023
Government response
The government responded to the whole report on 6 April 2023 (deadline 27 March 2023).
Summary written by Accountability Index from the government's response. It is not the government's own words.The MOD disagrees with the Committee's first conclusion and its conclusion on a potential Scottish workstream gap, while welcoming recognition of export success and the National Shipbuilding Office's Edinburgh presence and setting out its position on the pipeline, skills and SMEs.
- On the Fleet Solid Support contract, the MOD says the decision to award it to Team Resolute "did not prioritise short-term savings" and followed "a fair and open competition". It says it does not disclose details of losing bids, so it cannot say why the Team UK bid was non-compliant.
- The MOD "does not agree" that the award creates a potential gap in the workstream for the Scottish warship industry. It cites Type 31 construction continuing until 2028 and Type 26 construction "expected to continue into the mid-2030s".
- On the pipeline, the MOD says it is "subject to change" as it spans 30 years, but the National Shipbuilding Office "has committed to updating the shipbuilding pipeline at each multi-year Spending Review". For Type 32 frigates, the procurement route is "yet to be determined".
- On annual Type 26 updates to Parliament, the MOD "will consider its request". On skills, the UK Shipbuilding Skills Taskforce "intends to publish a report of recommended actions in autumn 2023", and its Chair "would be pleased to meet with the Committee" afterwards.