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Murphy talks over shipyard plan Work pledge for Clyde shipyards
(1 day later)
Scottish Secretary Jim Murphy will hold talks with shipbuilder BVT in Glasgow later over plans for the possible closure of two naval yards. Shipbuilder BVT has at least seven years' work for its Clyde yards, Scottish Secretary Jim Murphy has said.
A leaked memo revealed BVT could shut two of its three sites - at Scotstoun and Govan in Glasgow and Portsmouth - when work on two carriers ends in 2014. Emergency talks were held between Mr Murphy and BVT after a leaked memo revealed the possibility of large-scale redundancies on the Clyde.
Mr Murphy said he had cleared his diary so he could show his support for the workforce. The memo said that BVT could shut either its two sites at Scotstoun and Govan in Glasgow or one in Portsmouth when work on two carriers ends in 2014.
The SNP has demanded an urgent Commons statement on the issue. Mr Murphy said the government was determined to stand by the Clyde.
The memo shows BVT Surface Fleet's chief executive Alan Johnston forecasting savings of up to £500m from the closure of two yards after the contract for two Royal Navy super-carriers is completed in 2014. He said the order book was full, which would guarantee jobs at the Clyde yards for the next seven years.
He said the Ministry of Defence was prepared to underwrite any closure costs. An agreement between the company and the Ministry of Defence was due to be signed within the next few weeks and that would secure work for the next 15 years, he added.
'Ongoing commitment' Mr Murphy said: "This is a remarkable commitment to the Clyde, we're here for the long-term and that's very important."
Mr Murphy, who will visit the Scotstoun site, said the UK government had already delivered a "prosperous present" for the Clyde yards, and he wanted to make sure they had a "prosperous future" also. 'Sustainable business'
He said: "The shipbuilding industry in Scotland is in its strongest position for a generation. It has been a long time since the Clyde yards had such a healthy order book. However, there is still some doubt over the longer-term future of the yards.
"They have work for the next decade and a unique 15-year partnering agreement with the UK government underwrites their future. The memo shows BVT Surface Fleet's chief executive Alan Johnston forecasting savings of up to £500m from the closure of yards after the contract for two Royal Navy super-carriers was completed in 2014.
"This government has shown a significant and ongoing commitment to the industry in Scotland and there is absolutely no prospect of that lessening." Although further work may be promised, Mr Johnston was not able to give a guarantee that all jobs would be secure.
SNP Westminster leader and defence spokesman Angus Robertson earlier said the UK government should clear up whether the MoD was prepared to finance redundancies. He said: "My mission is to create a sustainable business for the future and that means developing new products and new markets and this company has been good at doing that."
"It would be grossly irresponsible to throw away the shipbuilding expertise which as been built up over generations on the Clyde. The SNP MSP for Govan, Nicola Sturgeon, dismissed the emergency meeting between Mr Murphy and BVT and said the workers wanted more than a photo shoot.
"The UK government must come clean on any plans that threaten the future of these yards." The deputy first minister said: "It is all very well seeking assurances from BVT but Jim Murphy must deliver a guarantee from Gordon Brown that the Ministry of Defence will not force the closure of any Scottish shipyard."