Clyde shipbuilding deal secures jobs for another 15 years

Jul 22 2009

A DEFENCE deal has been struck which will guarantee work at the Govan and Scotstoun shipyards for the next 15 years.

The news comes just weeks after a leaked memo suggested that two of BVT's three British yards could close after a contract for two giant aircraft carriers is completed in 2014.

Yesterday's signing of a deal worth £230million a year was welcomed by Scottish secretary Jim Murphy.

Warship builders BVT - who run the Glasgow operations - signed the "terms of business agreement" with the Ministry of Defence.

Murphy said: "This agreement provides a bright and brilliant future for shipbuilding on the Clyde.

"It also gives the industry the framework it needs to plan confidently for the future.

"That means jobs and it means skills for Scotland and it is great news, especially coming at a time of economic uncertainty.

"The British Government strongly supports the Clyde yards.

"This announcement shows that we back up our words with action."

Defence Minister Quentin Davies said it would help BVT build a world-class business by supplying the MoD while planning to find other markets.

He added: "The guarantee of 15 years' worth of work is especially pleasing to announce in the current economic climate.

"The contract we have announced today will help industry preserve a valuable skills base as the sector restructures to meet our future needs.

"It will lead to significant financial benefits for the MOD and the Royal Navy."