Scotland Gets £859m Navy Frigate Jobs Boost

The Ministry of Defence has signed a contract to build Royal Navy frigates with BAE Systems worth £859m that will sustain 1,700 jobs across the UK.

Six hundred of the jobs that will be safeguarded by David Cameron's announcement are in Scotland where BAE had indicated it may have to pull out in the event that the country voted for independence.

Ian King, the chief executive of BAE, said last May in a letter submitted to the Scottish Affairs Committee that the future of the project would have to be discussed if Scotland voted 'Yes' in the September referendum.

He said that "in the event of a Yes vote, and as we have made clear, we would be required to discuss the future of the Type 26 programme with our customer, the MoD."

His comments were interpreted by some to mean that the shipyards might have to close.

Welcoming the announcement, the Prime Minister said: "This is a substantial investment in our shipbuilding industry, safeguarding the jobs of 600 workers in Scotland and many more across the UK.

"Investing in these warships will ensure we continue to keep our country safe, at home and abroad.

"As part of our long term economic plan, we're not just building the most advanced modern warships in the world - we are building the careers of many young people with apprenticeships that will set them up for life."

BAE had said the future of the yards at Govan and Scotstoun was directly tied into the Type 26 frigates.

The Type 26, also known as the Global Combat Ship, is the next generation of high-tech warship designed to cope with the future requirements of the Royal Navy.

The signing of the contract was delayed until after the referendum on 18 September, 2014, after the Scottish Secretary said the plan to build the vessels in Glasgow could be endangered by a 'Yes' vote.

It resulted in a political row with the Scottish National Party, which wanted a 'Yes' vote, which said that any suggestion that contracts could be clawed back was "preposterous".

Other BAE Systems sites and supply chain firms across the country will also benefit from the contract.

The sites where they are based include those in Derbyshire, West Yorkshire, Manchester, Cheshire, Warwickshire, Leicestershire and Hampshire.

The first Type 26 is due to enter service as soon as possible after 2020 and the warship is expected to remain in service until 2060.

The Type 26 will replace Type 23s, with around 13 expected to be in service by the early 2020s.

David Hulse, national officer of the GMB union, said: "This announcement is very good news in that it secures the future of the Clydeside shipyards and the skilled workforce and will enable the company to provide a substantial number of much-needed apprenticeships.

"The uncertain international climate calls into question the Tory plans for further cuts in defence spending in the next parliament. These will impact on the capacity of the Army, the Navy and the RAF.

"The skilled shipyard and defence workforce are as much on the front line as the forces in uniform."