THE owners of Belfast shipyard have given a warm welcome to a new government-backed scheme which will aid the purchase of UK-built ships.
The Shipbuilding Credit Guarantee Scheme (SCGS) is designed to help buyers access finance to buy UK-built vessels and upgrade existing ships, with the government acting as guarantor for lenders.
It will guarantee a percentage of the value of loans used to purchase, refit, retrofit or repair vessels, sharing the risk with lenders to encourage offers of finance to UK vessel owners and operators.
And the move could potentially create hundreds of jobs, including in Belfast, and contribute millions of pounds to the economy.
The scheme forms part of the government's £4 billion plan to support shipbuilding through the National Shipbuilding Strategy Refresh, which was unveiled last year.
Harland & Wolff chief executive John Wood said: “We're delighted with the launch of the Shipbuilding Credit Guarantee Scheme.
“It will help shipbuilders like us to compete, win orders, and create new high-quality jobs across the country. We look forward to using the scheme as both a customer and builder.”
Mr Wood added: “It's a core deliverable from the National Shipbuilding Strategy, and we are committed to working with colleagues in government and across industry to accelerate its delivery so we can realise the objective of a competitive, innovative, and sustainable shipbuilding enterprise.”
Industry Minister Nusrat Ghani said: “Shipbuilding is an integral part of the UK’s industrial identity and through this scheme we are backing our great maritime businesses to get ahead of the competition.
“With cutting-edge vessels designed and built here in the UK this will be a boost to high-skilled careers and every company involved in the supply chain for shipbuilding, helping us to grow the economy.”
Shipbuilding tsar and Defence Secretary Ben Wallace said: “As I set out in the National Shipbuilding Strategy Refresh, this scheme will help build confidence in UK shipyards, allowing them to invest in the people and the technology to drive productivity forward in this vital sector of the UK economy.”
Shipbuilding is hugely important to the UK, supporting 42,600 jobs nationwide and adding £2.4 billion to the economy every single year.
A strong domestic sector helps to support the wider economy’s export ambitions, with 95 per cent of UK trade moved by sea.
Maritime UK chief executive Chris Shirling-Rooke said: “We applaud the Government for delivering on the pledge it made to industry in the National Shipbuilding Strategy Refresh by launching this credit guarantee scheme.
“It is a massive vote of confidence from government, and it will empower the UK’s shipbuilding enterprise to compete fairly on the global stage in doing what it does best: building great ships.”
The shipbuilding industry is a growing part of the UK’s new green economy. Supporting the purchase, construction and repair of high-value vessels will encourage continued investment in innovative, sustainable, low-carbon maritime technologies.
Marco Forgione, director general of The Institute of Export & International Trade, said: “It is a positive step that the Government is investing in UK ship building and the infrastructure around it. By launching the Shipbuilding Credit Guarantee Scheme (SCGS) it will help build confidence with investors looking to purchase UK built vessels.
“The UK remains home to a flourishing, dynamic and innovative maritime sector. This scheme will help support coastal communities and those with a strong shipbuilding history to continue to grow and develop high skilled jobs for the future.
“This initiative will have a significant positive impact on all the businesses which support the wider supply chain. As well as commodities and supplies a thriving shipbuilding industry supports a wide number of service focused businesses. This announcement is a great boost for the UK’s world leading services sector.
“Approximately 95 per cent of all UK imports and exports by volume are moved by sea and Naval shipbuilding is an important UK export success story.”
