Babcock deal seen as boost for Rosyth
Rosyth Dockyard's owner this week signed a deal with the Ministry of Defence that could help secure work at the Fife yard for years to come -- but the timing of the announcement angered opposition parties.
Babcock International confirmed on Thursday that it will become the MoD's key support partner in the maritime sector for the next 15 years.
The deal, known as a terms of business agreement, will boost the company's order book by about £6 billion to around £8.5 billion.
The agreement does not include refit work on the Royal Navy's warships but support activities for surface ships and submarines will be provided.
The UK Government also announced the Royal Navy had moved a step closer to the design of its new generation of warships, the highly versatile Type 26 combat ship.
Defence secretary Bob Ainsworth said a team led by BAE Systems Surface Ships, working with the MoD, would consider design proposals for the ship.
The Type 26 combat vessel is destined to replace the Type 22 and 23 Frigates, which are to begin leaving service at the end of the decade.
BAE, which owns shipyards in Glasgow, described the contract as "key to engineering jobs."
Bristol will be the main base for the project team but engineers on the Clyde will also be involved.
The deal was announced during a visit to the Govan yard by Scottish secretary Jim Murphy with Glasgow MPs John Robertson and Ian Davidson.
The defence secretary also announced that progress will continue on the Astute Class of submarines, the largest and most advanced attack submarines ever ordered by the navy.
The MoD is proceeding with the initial build work for a fifth vessel, as well as procurement activities to ensure key items for a sixth are available when needed.
Mr Ainsworth said, "Planning for future defence is crucial.
Cutting-edge capability
"Programmes like the Type 26 and Astute not only ensure the Royal Navy continues to have cutting-edge capability, but also sustain the industry that supports them.
"These commitments, and the long-term partnering agreement with Babcock Marine, will protect the long-term future of the maritime industry and preserve the industrial capability and skills needed to carry out future programmes cost-effectively."
First Sea Lord Admiral Sir Mark Stanhope said, "These programme announcements are welcome news for the Royal Navy.
"You simply cannot have an effective navy without capable frigates, and the Type 26 combat ship will form the future backbone of the Royal Navy's surface combatant force, alongside the new Type 45 destroyers.
"These ships will be highly versatile, able to operate across the full spectrum of operations, from war fighting to disaster relief."
The agreement between the MoD and Babcock also extends the latter's management roles at the Clyde and Devonport naval bases from 2013 to 2025.
Babcock chief executive Peter Rogers said, "The finalisation of this agreement is a fundamental cornerstone of our partnering relationship with the MoD in providing support to the Royal Navy.
"It confirms our long-term strategic role and it will deliver significant benefits to both parties over the 15-year period."
Willie Rennie, MP for Dunfermline and West Fife, said, "The timing, just before the election, is a bit suspicious, but nevertheless this is a tribute to the Babcock workforce at Rosyth with the MoD recognising the efficiency and effectiveness that they provide.
"This agreement embeds the relationship between Babcock and the MoD and aims to deliver significant savings for the taxpayers, whilst potentially delivering long-term work for the company's yards.
"However, there's no work guaranteed with this agreement.
Vibrant yard
"That's why it's important that we continue to make the case for Rosyth so that it will be a vibrant yard in the future.
"It's vital that the MoD understands that Rosyth means value for money."
Shadow defence secretary Liam Fox said, "We are just weeks away from the start of a scandalously overdue strategic defence review and Labour's bankrupt shopaholics are still racking up one last spending binge on the taxpayers' credit card.
"Labour has cut the surface fleet to the bone and cut defence spending four times.
"This is pure politics, a cynical and deceitful fantasy.
"Our highly-skilled defence workers in Scotland have a right to know where the money will come from.
"There is no doubt that our navy is too small, but the proper place to address this is in a full defence review.
"The Astute deal is an expected announcement, but the timing was obviously designed for political reason.
"Labour should stop playing politics with our defence industry."
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