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Minister confirms carrier orders Minister confirms carrier orders
(about 1 hour later)
Defence Secretary Des Browne has confirmed orders for two new aircraft carriers for the Royal Navy.Defence Secretary Des Browne has confirmed orders for two new aircraft carriers for the Royal Navy.
The contract has been described as a "major project for the future of the shipbuilding industry", by Prime Minister Gordon Brown. He said the £3.8bn contract would lead to the construction of the largest vessels ever sailed by the Royal Navy.
Speaking earlier in the Commons, he said he hoped MPs would be "pleased" with the announcement. The new 65,000-tonne carriers - HMS Queen Elizabeth and HMS Prince of Wales - will enter service in 2014 and 2016.
The move will safeguard thousands of jobs at the shipyards on the River Clyde and at the Rosyth Naval Base. Mr Browne said the work would support and create 10,000 jobs across the UK, including those at yards on the Clyde, Rosyth, Portsmouth and Barrow.
The work will be shared among a number of companies, including BAE Systems' Govan and Scotstoun yards. The contract was described as a "major project" for the shipbuilding industry by Prime Minister Gordon Brown.
Between them, the two yards employ 3,000 people. The carriers represent a step-change in our capabilities, enabling us to deliver increased strategic effect and influence around the world at a time and place of our choosing Des BrowneDefence Secretary
It is expected that the Royal Navy ships will be built in sections and then assembled at Rosyth. The work will be shared among a number of companies, including BAE Systems' Govan and Scotstoun yards, which employ 3,000 people.
It has been suggested that the contract may clear the way for BAE Systems and the VT Group to complete the merger of their shipbuilding assets. The ships will be built in sections and then assembled at the Rosyth Naval Base in Fife.
That would lead to the creation of a company with dockyards in Portsmouth and on the Clyde. Making the announcement, Mr Browne said the carriers would "provide our front-line forces with the modern, world class capabilities they will need over the coming decades".
"The carriers represent a step-change in our capabilities, enabling us to deliver increased strategic effect and influence around the world at a time and place of our choosing."
However, he said the carriers could not be built without a change in the maritime sector.
"I am pleased that VT Group and BAE Systems intend to form a joint venture in naval shipbuilding and support," said Mr Browne.
Thousands of people are employed by the Clyde yards
"The creation of such a joint venture will enable the Royal Navy to work with the industry to deliver the infrastructure the Navy will need to support the fleet in the future while retaining all three of our existing naval bases at Portsmouth, Devonport and Faslane.
"This will be good news for the three communities."
However, he warned there would be "some reductions" in the 17,800 personnel currently employed at the bases.
The carriers contract announcement was received warmly by the Scottish Chambers of Commerce.
Executive director Liz Cameron said: "We welcome the announcement of this £3.8bn project after years of planning.
This is an absolutely wonderful and brilliant day for the city Gerald Vernon-JacksonPortsmouth City Council leader
"This is fantastic news for Scotland. I congratulate the teams at BAE Systems and Babcock in winning this contract.
"Once again it demonstrates the world-leading skills and capabilities in Scotland and our ability to compete globally in high value markets."
Councillor Gerald Vernon-Jackson, the leader of Portsmouth City Council, said it would have "ripped the soul out of the city" if the Navy had pulled out.
He said: "This is an absolutely wonderful and brilliant day for the city and for the campaign we have waged to try to make sure we keep the Navy base here in Portsmouth.
"The presumption last August when the review was launched was that Portsmouth would close but we have been able to turn that around completely so that Portsmouth remains the home of the Navy."