Gary's views

Gary's weekly views

Each week an article by Gary has appeared in the Plympton Plymstock and Ivybridge News in South West Devon. The articles are published here

DEVONPORT DOCKYARD

Does Devonport dockyard have a future? Asking that question 2 years ago would have been daft, but seismic plates are shifting beneath our very feet. The coming together of three apparently unconnected events could yet produce for us an economic and political earthquake.

First, the government is changing the way it procures and maintains military assets, including ships and submarines. After years of encouraging competitive tendering to drive prices down, it now wants the defence industry in this country to re-structure itself in a more cost effective way, coming up with maybe one organization only. That is not necessarily wrong, it depends on the impact. The industry has got the message and all sorts of talks are going on between the defence contactors and shipyard and dockyard owning companies to meet the new challenge.

Second, the government is (rightly) considering whether we still need a nuclear deterrent (I think we do) and if we do whether it should continue to be submarine or aircraft borne. The outcome of this decision is obviously huge in itself for a dockyard whose core business is to maintain the submarine fleet that currently carries our deterrent.

Third, Devonport Management Limited is partly owned by an American Company called KBR Inc, which is in turn owned by global giant Halliburton that plans shortly to float its subsidiary company on the New York stock exchange. So what? Well, according to the financial press, this has led to the American directors of KBR focusing on their forthcoming flotation and not pitching in quickly enough to develop the UK corporate strategy that is in the best interests of DML and its workforce. It seems that our rivals, especially Babcock and Vospers Thorneycroft are in poll position to strike a deal that could leave us out in the cold.

There is a lot more water to flow under this bridge yet, but I have seen enough to be worried that the revised UK defence industry could just treat Devonport Dockyard simply as a graveyard for nuclear submarines. This is not acceptable. This doomsday scenario is some way off, but it is crucial to act now to avoid it.

Does it matter? At 4,500 jobs DML is still our largest local employer. The dockyard remains the engine room of the local economy and provides endless contracts for other regional firms. Yes, it matters.

Come on Ministry of Defence and DML – action required this day to avert disaster!

posted by Nigel on Saturday, May 13, 2006