Handing a £1.6billion defence deal to a foreign-led consortium would “betray” British workers, Labour warned today as MPs were urged to rally behind a UK bid.
Campaigners fear the Tories are set to award the contract for naval supply ships to a bid spearheaded by Spanish firm Navantia.
Shadow Defence Secretary John Healey said failing to build the three Fleet Solid Support vessels in the UK would let down British industry.
He warned: “Any decision by the Defence Secretary to build these warships abroad would be a betrayal of British shipyards and workers.
“It would be a big missed opportunity to boost British jobs and growth.”
Get a daily morning politics briefing straight to your inbox. Sign up for the free Mirror Politics newsletter
The 40,000-tonne Royal Fleet Auxiliary vessels will resupply Royal Navy warships with food, ammunition and explosives.
Four consortia were each given £5million by the Ministry of Defence to develop their bids as the Government began the “competitive procurement phase”.
The shortlist includes Team UK, involving Babcock and BAE Systems; Mumbai-based Larsen & Toubro, which describes itself as “India's premier infrastructure developer”; Dutch firm Damen Group; and Team Resolute, led by Spanish shipbuilders Navantia.
As well as Spanish state-owned Navantia, Team Resolute includes Belfast-based Harland & Wolff, which made the Titanic, and London-based designers BMT.
Team UK estimates 2,000 British jobs will be safeguarded if it is awarded the contract, with 1,500 more protected in the wider supply chain - and another 2,500 jobs indirectly benefiting in communities surrounding yards.
Industry insiders believe Team Resolute could land the deal - with up to 40% of the work going overseas.
A decision is expected within weeks.
If the contract goes to a consortium led by a company based abroad it will be the first time British warships have been built overseas.
Labour’s Mr Healey said that if the party was in power, “these Navy support ships will be built in Britain, by British workers, and defence will help lead our mission to buy, make and sell more in Britain”.
Labour MP Kevan Jones, a former Defence Minister who chairs the All-Party Parliamentary Group on Shipbuilding, today tabled a Commons early day motion calling for UK yards to be given the deal.
It “contends that UK warships should be designed, built and maintained in UK shipyards in order to strengthen sovereign defence capability and ensure national security considerations are met”.
It “calls on the Government to support UK shipyards and UK defence supply chains by awarding the Fleet Solid Support ship contract to Team UK”.
Mr Jones told the Mirror: “MPs must consider whether it is prudent, during a cost-of-living crisis, to export thousands of well-paid, highly-skilled jobs.
“The Government talks about growth – this is one area where they could do something about it by supporting shipyards and other UK businesses.”
GMB head of policy Laurence Turner said: “Sending this order overseas would be a negligent act by a Government that's all at sea.
“Politicians of all stripes must back UK shipbuilding today or answer to their constituents.”
The Confederation of Shipbuilding and Engineering Unions’ general secretary Ian Waddell said: "This contract has the potential to fulfil National Shipbuilding Strategy’s objective to ‘recapitalise UK industry’, grow capacity and capability.
“It is essential that any successful bid is required to demonstrate how it will meet that aim and show the social value in their bid and how it will help pump prime our regional economies.”
Prospect’s general secretary Mike Clancy said: “The Team UK bid is the only one to guarantee that a large majority of the work, including the high value design work, be done in the UK.
“This procurement decision is surely a no-brainer and should go to the one that supports the most UK jobs, boosts our shipyards and injects much-needed funds into local economies, as well as returning money to the Treasury through tax.”
An MoD spokeswoman 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.”
