KATE Forbes has been in talks with the UK Government after it refused to back a shipbuilder with two Scottish yards, putting hundreds of jobs at risk.
Belfast-based shipbuilder Harland and Wolff, which infamously built the Titanic, has two yards in Scotland – at Methil, Fife, and Arnish, Lewis – as well as Appledore in north Devon for a total of around 1500 jobs.
The firm had said it needed £200 million to refinance and applied for a loan guarantee from the UK Government.
However, on Monday, Business Secretary Jonathan Reynolds said the UK Government had rejected the request to act as a guarantor.
He said: “It is my assessment, following extensive engagement by my officials with market players, that HM Government funding would not necessarily secure our objectives and there is a very substantial risk that taxpayer money would be lost.”
On Tuesday, First Minister John Swinney said both the UK and Scottish Governments are keen to protect jobs at the Harland and Wolff yards, and that Deputy First Minister Kate Forbes had been in talks to safeguard their future.
Swinney said: “There is obviously a situation where Harland and Wolff are trying to secure additional investment in their operations.
“Our priority is to make sure that we do everything that we can to support employment at Arnish and Methil.
“The Scottish Government will do that in concert with the United Kingdom government where it’s possible for us to support such proposals.”
Harland and Wolff is part of a consortium, including Spanish shipbuilder Navantia, which won a contract to build fleet solid support (FSS) ships designed to supply munitions and supplies to Royal Navy warships at sea.
Trade unions have called for action to help the firm, with Unite general secretary Sharon Graham saying: “Harland and Wolff’s workforce and the shipyards they work in are of critical strategic importance.
“Five years after Unite members secured Harland and Wolff’s survival in Belfast, the political focus must now be on attracting stakeholders who are committed to building a long-term future, rather than those looking to turn a quick profit.
“I have been very clear with ministers that our union will leave no stone unturned to defend these vital assets and Unite has been engaging positively with senior Government officials in order to ensure that this happens.”
Matt Roberts, national officer with the GMB union, added: “These are worrying times for workers and their families in Northern Ireland, Scotland and the South West.
“These yards have been at the heart of UK manufacturing for centuries – from building the Titanic to the ships that defeated the Armada.
“Now they are critical to our future security in building the Fleet Solid Support ships for our Navy and in providing the renewables infrastructure needed to reach net zero.
“These yards must be saved and their long-term sustainable future secured.”
