Two navy shipyards could close

#1
Plans are being drawn up for the possible closure of two navy shipyards after aircraft carrier work ends in 2014, BBC Scotland has learned.

It follows a leaked memo from BVT, the owner of yards at Scotstoun and Govan in Glasgow, and in Portsmouth.

The memo says the Ministry of Defence is willing to pay for thousands of redundancies to scale down Britain's capacity for building warships.

The MoD said negotiations were ongoing and no decisions had been made.

The leaked memo, seen by BBC Scotland, shows BVT Surface Fleet's chief executive Alan Johnston forecasting savings of up to half a billion pounds from the closure of two out of three yards after the contract for two super-carriers is completed in 2014.
http://news.bbc.co.uk/1/hi/scotland/8127743.stm

Lunacy? Or a pre-emptive strike by BVT?
 
#2
What is not mentioned is that this is part of a sliding scale of planning ranging from "work explosion, take on more people" to the worst case scenario seen here.

This is very selective quoting, focusing on only one part of the article and taking it out of context.
 
#3
PartTimePongo said:
Plans are being drawn up for the possible closure of two navy shipyards after aircraft carrier work ends in 2014, BBC Scotland has learned.

It follows a leaked memo from BVT, the owner of yards at Scotstoun and Govan in Glasgow, and in Portsmouth.

The memo says the Ministry of Defence is willing to pay for thousands of redundancies to scale down Britain's capacity for building warships.

The MoD said negotiations were ongoing and no decisions had been made.

The leaked memo, seen by BBC Scotland, shows BVT Surface Fleet's chief executive Alan Johnston forecasting savings of up to half a billion pounds from the closure of two out of three yards after the contract for two super-carriers is completed in 2014.
http://news.bbc.co.uk/1/hi/scotland/8127743.stm

Lunacy? Or a pre-emptive strike by BVT?
I just added this to the other CVF thread.

Question: My bold. Why is the MoD - ie the taxpayer - willing to pay redundancies to private sector workers?
 
#4
Depending on the nature of the contract and industrial agreeement signed to form up BVT - if the alliance was contractually guranteed a certain level of workload, which MOD did not then meet and layoffs resulted, we may be liable to pay for it, as its our fault?
A lot of the problems linked to procurement tie into the fact that MOD wouldnt support workflows until it had a single entity to deal with, while industry wouldn't merge till it had a guranteed workflow!
 
#5
jim30 said:
Depending on the nature of the contract and industrial agreeement signed to form up BVT - if the alliance was contractually guranteed a certain level of workload, which MOD did not then meet and layoffs resulted, we may be liable to pay for it, as its our fault?
A lot of the problems linked to procurement tie into the fact that MOD wouldnt support workflows until it had a single entity to deal with, while industry wouldn't merge till it had a guranteed workflow!
So, potentially another cunning 'success' for New Labour and its (defence) industrial policy?
 
#6
It seems that the pigeons have come home to roost. Remember Lord Drayson's Defence White Paper on Defence Industrial Strategy published in Dec 2005? It sought to ensure that the capability requirements of the Armed Forces can be met now and in the future by giving industry a clearer idea of MOD priorities; allowing them to make informed decisions on restructuring. It also sought to promote a sustainable defence industrial base that maintains the industrial capabilities needed in the UK to ensure national security.

Defence White Paper on DIS said:
i. The Defence Industrial Strategy (DIS) is structured in three parts: Part A, providing the strategic context; Part B, reviewing different industrial sectors and cross-cutting industrial capabilities; and Part C, outlining the implications for MOD and industry as a whole, and how the DIS will be implemented.

Part A – Strategic Overview

ii. The global security environment in which the Armed Forces operate has changed substantially over the past fifteen years. Facing new and complex challenges, the roles, size and shape of Armed Forces have also changed. In parallel, the defence industry has evolved; defence companies are now often transnational, needing to attract and retain investors in international markets – forcing increased efficiency, restructuring and rationalisation. We are now reaching a crossroads.

iii. Although we are in the middle of a substantial transformation, involving a series of major new platforms (including the future aircraft carriers, Type 45 Destroyers, new medium-weight armoured fighting vehicles, and the A400M, Typhoon and Joint Combat Aircraft), we expect these platforms to have very long service lives. This means the future business for the defence industry in many sectors will be in supporting and upgrading these platforms, rapidly inserting technology to meet emerging threats, fulfil new requirements and respond to innovative opportunities, not immediately moving to design the next generation.

iv. In parallel, industrial rationalisation continues, and sustaining competition to meet domestic requirements is increasingly difficult. In several sectors, following the entry into service of major projects, there will be substantial overcapacity in production facilities in the UK defence industry in a few years’ time.

v. As we look to non-British sources of supply, whether at the prime or subsystems level, we need to continue to recognise the extent to which this may constrain the choices we can make about how we use our Armed Forces – in other words, how we maintain our sovereignty and national security.

vi. Companies now have more choice than ever before about which markets to enter, which secure the best return for shareholders, and here to base their operations. If we do not make clear which industrial capabilities we need to have onshore (and this includes those maintained by foreign-owned defence companies), industry will make independent decisions and indigenous capability which is required to maintain our national security may disappear...
The bit about the Maritime Sector starts on page 68.
 

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