A union has raised fears that a £1.6bn order for three supply ships could be awarded to a Spanish company, meaning a North East shipyard would miss out.
The GMB union says sources close to the tendering process have suggested the work to build several 400,000 tonne Fleet Solid Support (FSS) vessels for the UK’s aircraft carriers could go to Spanish Government-owned company Navantia. A competitive tender was first launched in May last year, and has seen several overseas firms enter the bidding.
The move has previously provoked criticism and now GMB estimates that at least £285m would also be returned to the taxpayer through income tax, national insurance contributions and lower welfare payments, if the ships were built in the UK.
Read more: Britishvolt confirms staff on reduced pay as funding secured to stave off collapse
In March, then Secretary of State for International Trade Anne-Marie Trevelyan visited A&P Tyne's Hebburn base to launch a National Shipbuilding Strategy, which was welcomed by the company. At the time A&P employed about 169 people but has capacity at Hebburn for more than 500.
When asked at the event if the Government could do more to guarantee work for UK firms, Ms Trevelyan told Business Live: "From a military perspective, we build all of our warships in the UK - that's built in already - and as we grow that and are able to grow the pipeline of the wider shipbuilding and maritime sector, we'll be growing people."
Matt Roberts, GMB national officer, said: "At a time of international uncertainty and with the UK economy in crisis, it seems utterly perverse for the Conservatives to send a massive naval contract overseas. Sending parts of the FSS order to Spain rather than delivering all the work in the UK is an insult to our shipyards, including A&P Tyne. Our yards produce world-class ships but we urgently need investment and a steady pipeline of orders.
"The Defence Secretary must reassure GMB members and the public there will be adequate oversight to ensure foreign bidders cannot and do not renege on their obligations. The UK should prioritise the maintenance and strengthening of our sovereign defence manufacturing capabilities. Once again the Conservatives are showing they cannot be trusted with our nation’s security."
In response, the Ministry of Defence indicated the competition supported the aims of the National Shipbuilding Strategy and that a proportion of the build work will be carried out in the UK including integration and fitting of sensitive systems.
An MoD spokesperson said: "The contract for the Fleet Solid Support competition will be awarded to a UK business, either solely or as part of a consortium, promoting growth across the UK shipbuilding sector. As the competition is ongoing it would not be appropriate to comment further at this time."
A&P Tyne was contacted for comment.
READ NEXT:
