THE boss of Harland & Wolff has expressed disappointment after the UK Government scrapped a £250 million shipbuilding contract.
The Belfast-based company, which also owns shipyards in Scotland and the south of England, was one of two finalists in the running to land the lucrative national flagship deal.
But the massive contract to create a successor to the Royal Yacht Britannia has been ditched as part of Rishi Sunak’s squeeze on government spending.
The plan was championed by Boris Johnson when he was prime minister, but was dismissed as a "vanity project" by critics.
The UK’s Defence Secretary Ben Wallace told MPs on Monday he was prioritising the procurement of the multi-role ocean surveillance ship (MROSS) instead of the flagship.
John Wood, chief executive of Harland & Wolff said the company had planned to use the contract as a launch platform for ‘green shipbuilding’ projects.
“We are certain that had the national flagship gone ahead, the vessel would have returned many multiples of her build cost to the UK economy over many decades, acting as an international demonstration of the creativity and engineering talent the UK has to offer,” he said.
“Advances planned for the programme were not just limited to the vessel itself. We had expected to use the national flagship as the launch platform for green shipbuilding, demonstrating how industry can dramatically reduce its environmental footprint.
“Obviously the decision to suspend is disappointing, but we understand the rationale for doing so, considering the current macro-economic environment and the ongoing situation in Ukraine.
“We recognise that the government, and the Ministry of Defence in particular, must prioritise their budgets and focus on the most pressing and strategically vital programmes which ensure the defence and security of the nation.”
Mr Wood added: “Given the global trade that can be driven to the UK by a vessel like this we do expect that a vessel of this type - either government or privately owned - will come back to the table in the future and we remain ready to assist at that time.”
Defending the decision on Monday evening, Downing Street acknowledged that the state of the public finances was a factor in the decision.
"With Russia's ongoing illegal war, it is right that we prioritise our capabilities," the Prime Minister's official spokesman said.
The multi-role ocean surveillance ships will protect undersea cable and pipelines which is "obviously of particular interest at the moment".
"As a result the MoD has prioritised their spending and are terminating the flagship competition," the spokesman said.
The Prime Minister "thinks it is right to prioritise at a time when difficult spending decisions need to be made" and "finances are tight".
