Recommendation 6

HM Government Acknowledged

Grouped response for 6, 7 The Government are grateful to the Committee for highlighting the prosperity benefits that shipbuilding brings to Scotland and MOD look forward to exploring this matter further with the Committee in due course. The recent National Shipbuilding Strategy (NSbS) Refresh indicated the importance of an indigenous shipbuilding industry which is relevant to both the character and pace of MOD warship procurement. The NSbS Refresh also sets out a comprehensive package of Government support to further a shipbuilding renaissance for the whole of the UK, including Scotland. The strategy reflects well over £4bn of investment in UK shipbuilding over the next three years alone, including a range of opportunities for Scottish shipbuilders. The NSbS Refresh includes a 30-year pipeline of more than 150 new vessels for the UK Government and the Devolved Administrations, going wider than just Defence. Whilst the build location of specific vessels cannot be guaranteed, Scotland stands to benefit from this pipeline right across the supply chain bringing further prosperity to the region. The Defence and Security Industrial Strategy (DSIS) removed the definition of warships as aircraft carriers, destroyers and frigates for procurement purposes only and therefore each class of ship will be determined on a case-by-case basis. The removal of the warship definition provides the MOD with greater flexibility in determining its procurement route, as all Royal Navy and Royal Fleet Auxiliary ships are operated by the UK in support of our national defence and security requirements. From frigates to naval auxiliaries, they contribute to the wide range of defence tasks, in peace or conflict; and it is entirely logical to view them as component parts of a broad maritime defence capability. As well as considering specific capability requirements and national security arguments, MOD will consider the long-term industrial impact of different options. The chosen procurement approach will be communicated to industry as early as possible to allow for forward planning. The Committee rightly highlights the pipeline of skilled jobs that shipbuilding delivers for Scotland, and this is expected to continue as seen through the ongoing Type 31 and Type 26 frigate builds. The Type 31 has generated 150 apprentices and sustains around 1,250 highly skilled jobs, whilst BAE Systems currently employ over 400 shipbuilding apprentices and graduates, mostly in Glasgow, and aims to increase this to 800 by 2025. MOD base closures and base expansion