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Old 23rd Jun 2008, 15:06
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ORAC
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'The MoD is a blight on our economic lives'
Carrier delay 'could cost jobs'

The delay in signing a contract for two new aircraft carriers could endanger jobs at Scottish shipyards, according to a cross-party group of MPs. In its report on the defence industry, the Scottish Affairs Committee also said any gap in workload could damage the UK's ship-building skills base.

There have been delays over the past two years in finalising the £4bn deal for the vessels. They would be partly built on the Clyde and fully assembled at Rosyth.

In its report, the committee urged the Ministry of Defence (MoD) to review how it communicates the progress of defence programmes. It said this was necessary to "limit uncertainty and worry about possible delays, and to avoid 'scare-mongering' which has been destabilising to the workforce and wider community".

The report also identified a number of "challenges" ahead for the industry. It said possible constitutional change, limited success to date in the export market, and competition from English yards were all threats to future work.

Committee chairman, Mohammad Sarwar MP, said: "It is not an exaggeration to say that the defence industry in Scotland is vital. We heard during evidence sessions that defence and aerospace industries and the MoD support almost 50,000 jobs in Scotland."

"To secure the future of the industry, and to ensure that it remains a world class base for manufacturing and engineering, we call on the MoD, the Scottish Government, Scottish Enterprise, Skills Development Scotland, the Scotland Office, and the industry itself to forge a coherent and effective working relationship."...........
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