Building naval support ships abroad would deny UK £1.35bn economic windfall, says defence expert

Monday, 14 May 2018 11:44

The UK would miss out on an economic windfall of up to £1.35 billion and the Treasury be denied £415 million in taxes if the government hands the build of the navy’s three new Fleet Solid Support ships (FSS) to overseas shipyards, according to a report for the Confederation of Shipbuilding and Engineering Unions (CSEU).

The report, Supporting the Royal Navy, supporting the United Kingdom, is set to be launched in parliament tomorrow (Tuesday 15 May) by the CSEU an alliance of the UK’s major trade unions, Unite, GMB, Prospect and Community.

Calling on the government to reclassify the solid support ships as warships to enable them to be excluded from European Union competition rules, the report’s author defence expert Francis Tusa, warns that international shipyards lack the experience needed to build the large complex military vessels.

The report also argues that UK shipyards would be at a disadvantage if the government ploughs on with an international competition because many foreign shipyards are either state owned or enjoy direct or indirect state subsidies.

Commenting CSEU general secretary Ian Waddell said: “It would be a travesty if UK government ministers handed the economic windfall that building these ships brings to another country.

“The skills, knowledge and capability to design and build complex warships would be hollowed out and the clock turned back to the 1990s when the UK’s shipbuilding was on its knees.

“As this report demonstrates, building the navy’s new solid support ships here in the UK is no-brainer and would generate significant economic returns over and above the £1 billion cost of the project.

“Jobs and skills would be created, communities would become a thriving part of this country’s maritime future and the UK’s wider manufacturing base would benefit from the ships being built using British steel.

“The UK government needs to scrap plans for an international tender and back British manufacturing and the UK’s shipbuilders by guaranteeing the fleet support ships are built in the UK.”