Govan - more good news

07 Dec 2000

Scottish Secretary, John Reid today said that the announcement by BAE SYSTEMS of a contract with Stirling Shipping was, ‘great news for the Clyde and the best Christmas present that the Govan workforce could have received’.

John Reid said:

"BAE SYSTEMS have said that this order for an offshore support vessel with the option to provide another in the future provides a significant contribution towards bridging the gap between now and the start of the ALSL programme.

"It confirms the confidence that I have had in the ability of the yard to win commercial orders and I am sure that it will be welcomed by all who have worked so hard over these past months to secure a future for the yard. I am delighted for all at Govan.

"Many of us have been fighting for the future of this yard for well over a year. We started out when with no operator at the yard, let alone any orders in the book. What we had to sustain us was the prospect of work in the future from the Type 45 Destroyer contract that will be finally assembled at Scotstoun.

"But we pulled together and persevered. The first breakthrough was securing BAE SYSTEMS as the operators of the yard. The second major breakthrough was the contract for the Landing Ships announced just last month. But there were some niggling worries then because there would be something of a gap between now and the Landing Ship contract starting. Those worries have been removed by news over the last month that work on 8 Landing Craft would be carried out at Govan and by today’s news of this important order for Stirling Shipping.

"I know how delighted the workforce will be at today’s news. They can enjoy a Christmas free from worry and concern and look to the future with confidence.

"Of course we cannot be complacent. The shipbuilding market is competitive. But this contract demonstrates that BAE SYSTEMS on the Clyde can win in the commercial market. So I see this contract as good news for shipbuilding on the Clyde. We now have three yards on the Clyde with healthy order books and confidence for the future. That is an excellent situation to be in.

"A year ago the Govan Yard had no future, no orders and no prospect of further work. I am delighted that through the hard work of many people the yard now has a healthy order book and a bright future."

NOTE TO NEWS EDITORS

The Stirling Shipping order is for one anchor handler/tug/supply-vessel, with an option to provide a further vessel in the future. The first vessel will be delivered in February 2002. One of the vessels secures the equivalent of 150 jobs for a full year.