Select committee: Scottish Affairs Committee
Conclusion 83
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)
A further challenge relates to retaining existing staff. Witnesses told us that uncertainty about future workloads could lead to staff leaving their roles. John Howie of Babcock said: “There are inherent inefficiencies in ordering a batch of ships and then not ordering anything for four, five or six years. It is hard to retain workforces.”134 Richard Powell of the Society of Maritime Industries (SMI) explained that “[i]f you have that uncertainty because you have been four years on a contract or six years on a Type 45 and so on, and there is no prospect of future work, they will go.”135 Professor John Louth 127 Q42; Q95; Q101; Qq148–149 128 Professor Trevor Taylor, RUSI (DIS0033) 129 Q38 130 City of Glasgow College (DIS0035) 131 Q62 132 Q75 133 Q77 134 Q83 135 Q44 Defence in Scotland: military shipbuilding 31 suggested a further factor that might make retaining talented staff difficult: […] there is a suggestion that many young professionals take advantage of excellent corporate graduate schemes to hone their engineering and scientific skills, then leave at an early opportunity to explore more entrepreneurial leanings rather than being trapped in conventional, non-cutting-edge design, build and maintenance bureaucracies.136 He pointed to research showing that around 80 per cent of individuals who leave the defence sector before the normal retirement date do not return to the sector.137
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.