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Shipping: BVT Shipbuilders

Volume 712: debated on Wednesday 15 July 2009

Question

Asked by

To ask Her Majesty's Government whether they have any liability for possible future redundancies at BVT Shipbuilders; and, if so, what is the basis of such liability. [HL4856]

Consistent with the Defence Industrial Strategy (Cmnd 6697), the department has committed to work with its industrial partners, including BVT Surface Fleet Limited (BVT), to transform the maritime sector, maintain sovereign capability, and seek performance improvements to create a sustainable, world-class UK maritime sector.

The BVT terms of business agreement is planned to be a long-term—15-year—industrial partnership and in that context it is quite normal that provision should be made for redundancy costs to be met at customer expense in certain circumstances. However, there are no current plans to rationalise or reduce the number of BVT shipyards nor, in that context, are we aware of any plans by BVT to announce redundancies.