MoD confirms £3.8bn carrier order

[David Edwards]

MoD confirms £3.8bn carrier order

Defence Secretary Des Browne has confirmed orders for two new aircraft
carriers for the Royal Navy.

He said the £3.8bn contract would lead to the construction of the largest
vessels ever sailed by the Royal Navy.

The new 65,000-tonne carriers - HMS Queen Elizabeth and HMS Prince of
Wales - will enter service in 2014 and 2016.

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 contract was described as a "major project" for the shipbuilding
industry by Prime Minister Gordon Brown.

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 Browne
Defence Secretary

The work will be shared among a number of companies, including BAE Systems' Govan and Scotstoun yards, which employ 3,000 people.
The ships will be built in sections and then assembled at the Rosyth Naval
Base in Fife.

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.

"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-Jackson
Portsmouth 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."

Story from BBC NEWS:

http://news.bbc.co.uk/go/pr/fr/-/1/hi/scotland/glasgow_and_west/6914788.stm

Published: 2007/07/25 14:12:53 GMT