14 Jan 2000
On his first visit to the Govan Yard since its recent change of management, Scottish Secretary John Reid today paid tribute to the dedication and determination of the management and staff of BAE SYSTEMS in successfully achieving the transfer of the Yard from Kvaerner. Mr Reid also conveyed his full recognition of the importance to the Yard of the MoD’s Ro - Ro ferry contract.
Speaking during a visit to the Yard Mr Reid said:
"Having been closely involved in the negotiations last year over the future of the Govan yard I was delighted to see a successful conclusion to the deal that allows BAE SYSTEMS to operate the Yard. It is testimony to the hard work and determination of everyone at the Govan Yard that a deal was reached. The new operators can look to the future with renewed confidence and concentrate on winning new orders that will help safeguard employment at the Yard.
"Today is the closing date for bids for the Ro - Ro ferry contract to be submitted to the MoD and BAE SYSTEMS have already submitted their bid, as part of a larger consortium, for this contract.
"This Government has fully supported the use of Smart Procurement for the MoD. While everyone concerned fully recognises that the MoD will follow the proper procedures for awarding such a large contract, I want to underline my recognition of the importance that such a contract could play in the future of this Yard. I am sure that the MoD will give full consideration to all the factors associated with this contract.
"I attach great importance to the shipbuilding industry in Scotland and will continue to support it in whatever way I can."
NOTE TO NEWS EDITORS
It is expected that if the MoD place orders for 6 ferries, the contract for the building of the ferries could be worth over £200m.