'The best Christmas present': Harland & Wolff rescue deal saves 350 jobs at Scottish shipyards

Under the deal, Spanish shipbuilding subsidiary Navantia UK will buy the company’s sites, securing the future of 350 skilled workers at yards in Methil, Fife, and Arnish in the Western Isles.

The Belfast-based company was placed into administration in September for the second time in five years.

The deal with Navantia will secure 1,000 jobs across the UK overall and protect the future of H&W’s shipyards.

Union GMB Scotland welcomed the deal, but stressed the priority was now “to ensure the future of these yards is not just secure, but sustainable”.

Louise Gilmour, GMB Scotland secretary, said: “The workforce in Scotland has endured too many false dawns and deserves certainty, investment and detailed plans.

“These yards are full of engineering excellence, experience and potential and should be thriving, not just surviving.

“If operations like this do not have a long-term, profitable place in Scotland’s industrial landscape, supporting good jobs and local communities, then Scotland is doing something very wrong. The recent history of these yards has been one of squandered opportunities and that must end.”

Scottish Secretary Ian Murray visited H&W’s site at Methil on Thursday to meet with management, workers and trades unions, shortly before the deal was announced.

He said: “This deal will save hundreds of skilled Scottish jobs, bringing a vital lifeline to communities on Lewis and in Methil. Navantia’s investment will not only secure the future of all four UK yards, but also encourage future support for UK shipbuilding and fabrication - a vital cornerstone of our defence and clean energy sectors.

“Our Plan for Change is fixing the foundations as we face up to the worst economic and industrial inheritance since the Second World War. But through our Industrial Strategy, and by helping facilitate deals like this one, we are breathing new life into key sectors, sustaining skilled jobs and delivering long-term economic growth to improve living standards right across the UK.

“Scotland has a proud industrial past. Today, the workers of Fife and Lewis can look forward to a bright industrial future.”

The commercial deal will also ensure the delivery of the Ministry of Defence’s contract with Navantia to build three Royal Navy ships. The vessels will transport munitions, spares and supplies to UK aircraft carriers under the Fleet Solid Support (FSS) Programme.

The FSS ships help safeguard the UK’s aircraft carriers’ military capability by delivering vital supplies to the Carrier Strike Group.

Navantia UK is the main contractor on the contract, which was originally valued at £1.6 billion for three vessels.

UK Business Secretary Jonathan Reynolds would not be drawn on how much extra money would now be pumped into the contract, but insisted the revision was “relatively minor” and represented a good deal for taxpayers, workers at H&W’s shipyards and national security.

“This is a huge vote of confidence in the UK,” he said. “It is good for jobs, it’s good for national security and it’s good for all parts of the UK.

“This was a huge problem that we inherited walking into office. We have been able to broker a solution that is not just a solution to the short-term problem, but one in the best long-term interests of the UK.”

Scottish Labour MP Torcuil Crichton, who has a H&W yard in his Western Isles constituency, claimed the announcement was “a major achievement” that came from having a Labour government looking out for the islands.

The Western Isles MP said: “This is the best Christmas present that the Arnish workforce and the Isle of Lewis could have. There are over 150 jobs at the yard, from apprentices to journeymen, and losing those jobs and that wage bill would have been a major blow to the economy.”

Labour MP Richard Baker, who also has a site in his Glenrothes and Mid Fife constituency, said the announcement showed the new Labour government was “delivering for Fife and investing in the future of our local communities“.

He said: “Without this commitment, the outcome could have been very different. When I was elected, it was clear the refusal of the last Tory government to take the action required to ensure the yards had a sustainable future had left Methil in a precarious position.

“Since then, I have worked every day alongside all those fighting for the future of the yard and its skilled workforce to secure a successful outcome.

“These workers have faced too much anxiety in recent years. With GB Energy headquartered in Scotland, the 200 skilled jobs and apprenticeships at Methil and the expertise of the workforce are crucial in our mission to turn Scotland and the UK into a clean energy superpower.”

Defence Secretary John Healey said: “This agreement keeps vital defence manufacturing in the UK and protects skilled jobs at historic shipyards across our nations. It strengthens our sovereign capability to support Royal Navy operations worldwide, while building the industrial partnerships that will drive growth.”

The announcement was also welcomed by the Scottish Government, with ministers insisting they were also involved in the rescue bid.

Deputy First Minister Kate Forbes said: “The operations at Arnish and Methil are of significant economic importance to Scotland and I welcome confirmation that both are included in the sale of Harland & Wolff, after what will have been a difficult time for the workers, their families and the local areas.

“While the sale was a commercial decision for Harland & Wolff, it follows combined efforts from the Scottish and UK governments, trades unions, management and staff to ensure the best interests of Arnish and Methil were clearly represented.

“I look forward to building a relationship with Navantia as it develops its business strategy to ensure a sustainable future for the Scottish yards and the highly skilled workforce.”