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From the Glasgow Herald -

Contract for Navy vessel is switched to Clyde

Govan shipyard in Glasgow is to take over the contract to build a ship from a rival in England after the work went over budget.
The 16,000-ton fleet auxiliary ship Lyme Bay will be towed from Tyneside to the Clyde after procurement officials at the Ministry of Defence decided to withdraw the work from the Swan Hunter shipyard at Wallsend.
BAe Systems will undertake the work, leading to a number of jobs in Glasgow, while a question mark remains over the future of those in England working under the Dutch-owned shipbuilder.
Swan Hunter had 200 skilled tradesmen working on the ship but as there is already a recruitment drive under way at the Scotstoun and Govan yards, the switch is expected to generate only several dozen extra jobs.
The Clyde yards have already built two sister ships, Mounts Bay and Cardigan Bay, at a combined cost of £176m. Mounts Bay has been delivered – on time and on budget – and Cardigan Bay is also expected to be completed satisfactorily.
Swan Hunter was contracted to build two – Lyme Bay and Largs Bay.
The Tyneside yard has been paid £309m which is almost twice the original quote.
Largs Bay was handed over to the Royal Fleet Auxiliary in April but it will be another year before Lyme Bay, which was due to have been launched last year, will be ready to undergo sea trials.
MoD officials had been concerned at the rising costs and delays for some time and a trouble-shooting team drafted in from Govan had already tried to speed up production.
Lord Drayson, minister for defence procurement, added: "This has been a difficult decision for the MoD.
"Our priority has always been effective delivery of the required military capability, which we have attempted to achieve through successful completion of the contract with Swan Hunter.
"However, the cost growth and delays on this project have been unacceptable. The Ministry of Defence has reached the conclusion that the contract no longer represents value for money.
"We need to act to bring certainty to the programme and this decision is fully consistent with the principles of the Defence Industrial Strategy."
A spokesman for BAe in Glasgow said last night: "BAe Systems is committed to working with the MoD to ensure the timely and efficient delivery of the remaining two vessels, Cardigan Bay and Lyme Bay. We are confident that our proven experience on the programme to date will ensure that we deliver the required capability to our customer."
Jaap Kroese, Swan Hunter chairman, said last night: "I am obviously disappointed with the outcome but the Ministry of Defence has taken this decision because it makes financial sense to finish the last two ships in the one shipyard."
A spokesman for the MoD added that Swan Hunter sees its future in new opportunities including shipbreaking, for which it has now received a licence from the Environment Agency.
If successful, the spokesman said, that transition may enable the company to sustain its current workforce of approximately 160 jobs The MoD is also working with regional development agency staff to identify further work-based training opportunities for Swan Hunter apprentices.
Govan shipyard in Glasgow is to take over the contract to build a ship from a rival in England after the work went over budget.
The 16,000-ton fleet auxiliary ship Lyme Bay will be towed from Tyneside to the Clyde after procurement officials at the Ministry of Defence decided to withdraw the work from the Swan Hunter shipyard at Wallsend.
BAe Systems will undertake the work, leading to a number of jobs in Glasgow, while a question mark remains over the future of those in England working under the Dutch-owned shipbuilder.
Swan Hunter had 200 skilled tradesmen working on the ship but as there is already a recruitment drive under way at the Scotstoun and Govan yards, the switch is expected to generate only several dozen extra jobs.
The Clyde yards have already built two sister ships, Mounts Bay and Cardigan Bay, at a combined cost of £176m. Mounts Bay has been delivered – on time and on budget – and Cardigan Bay is also expected to be completed satisfactorily.
Swan Hunter was contracted to build two – Lyme Bay and Largs Bay.
The Tyneside yard has been paid £309m which is almost twice the original quote.
Largs Bay was handed over to the Royal Fleet Auxiliary in April but it will be another year before Lyme Bay, which was due to have been launched last year, will be ready to undergo sea trials.
MoD officials had been concerned at the rising costs and delays for some time and a trouble-shooting team drafted in from Govan had already tried to speed up production.
Lord Drayson, minister for defence procurement, added: "This has been a difficult decision for the MoD.
"Our priority has always been effective delivery of the required military capability, which we have attempted to achieve through successful completion of the contract with Swan Hunter.
"However, the cost growth and delays on this project have been unacceptable. The Ministry of Defence has reached the conclusion that the contract no longer represents value for money.
"We need to act to bring certainty to the programme and this decision is fully consistent with the principles of the Defence Industrial Strategy."
A spokesman for BAe in Glasgow said last night: "BAe Systems is committed to working with the MoD to ensure the timely and efficient delivery of the remaining two vessels, Cardigan Bay and Lyme Bay. We are confident that our proven experience on the programme to date will ensure that we deliver the required capability to our customer."
Jaap Kroese, Swan Hunter chairman, said last night: "I am obviously disappointed with the outcome but the Ministry of Defence has taken this decision because it makes financial sense to finish the last two ships in the one shipyard."
A spokesman for the MoD added that Swan Hunter sees its future in new opportunities including shipbreaking, for which it has now received a licence from the Environment Agency.
If successful, the spokesman said, that transition may enable the company to sustain its current workforce of approximately 160 jobs The MoD is also working with regional development agency staff to identify further work-based training opportunities for Swan Hunter apprentices.
Govan shipyard in Glasgow is to take over the contract to build a ship from a rival in England after the work went over budget.
The 16,000-ton fleet auxiliary ship Lyme Bay will be towed from Tyneside to the Clyde after procurement officials at the Ministry of Defence decided to withdraw the work from the Swan Hunter shipyard at Wallsend.
BAe Systems will undertake the work, leading to a number of jobs in Glasgow, while a question mark remains over the future of those in England working under the Dutch-owned shipbuilder.
Swan Hunter had 200 skilled tradesmen working on the ship but as there is already a recruitment drive under way at the Scotstoun and Govan yards, the switch is expected to generate only several dozen extra jobs.
The Clyde yards have already built two sister ships, Mounts Bay and Cardigan Bay, at a combined cost of £176m. Mounts Bay has been delivered – on time and on budget – and Cardigan Bay is also expected to be completed satisfactorily.
Swan Hunter was contracted to build two – Lyme Bay and Largs Bay.
The Tyneside yard has been paid £309m which is almost twice the original quote.
Largs Bay was handed over to the Royal Fleet Auxiliary in April but it will be another year before Lyme Bay, which was due to have been launched last year, will be ready to undergo sea trials.
MoD officials had been concerned at the rising costs and delays for some time and a trouble-shooting team drafted in from Govan had already tried to speed up production.
Lord Drayson, minister for defence procurement, added: "This has been a difficult decision for the MoD.

Rushie
 

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Discussion Starter #2
More on Swan Hunter...

From the Northern Echo -

Swans shipyard to be mothballed

SWAN Hunter's last remaining shipyard will be mothballed with the loss of more than 300 jobs, all but marking the end of naval shipbuilding in the North-East, it emerged last night.

Swans has been given no alternative but to close its yard in Wallsend, North Tyneside, after the Ministry of Defence (MoD) yesterday announced it had ended its contract with the company because of spiralling costs.

After months of speculation, the second Royal Fleet Auxiliary vessel, the Lyme Bay, will leave Swans.[/I

The remaining work on the ship will be carried out by BAE systems, in Govan, Scotland.

The MoD said the contract with Swans no longer represented value for money after costs and delays on the Lyme Bay reached an "unacceptable" level.

A source yesterday told The Northern Echo that Swans was now unlikely ever to work in the defence industry again.

Swans owner Jaap Kroese said the yard would be mothballed in the next two weeks.

"I am not in the job to make people redundant, but that is what is going to happen," he said. "About 300 jobs are going to go imminently, probably over the next few weeks.

"There will just be a couple of people left and the yard will run on a care-and-maintenance cycle."

More than 1,600 ships, including more than 400 naval vessels, have been built at Swan Hunter, but the Lyme Bay will be the first in the yard's 145-year history to leave the yard uncompleted.

The MoD will pay Swans in full for the work they have carried out on the Lyme Bay, which is over-budget, a year overdue and months away from completion.

Yesterday, Defence Procurement Minister Lord Drayson said: "The cost growth and delays on this project have been unacceptable.

"The Ministry of Defence has reached the conclusion that the contract no longer represents value for money."

David Bowles, chairman of Northern Defence Industries, which represents the defence manufacturer sector across the region, said the future looked extremely bleak for Swans.

"It is a huge shame for the North of England that this will be the last complete naval ship we will see being built in the region," he said. "We all feel very sorry for everybody at Swan Hunter and for Jaap Kroese, who worked very hard and invested a lot of money.

"But the demands of the contract were just too much for the resources of the yard."


Rushie
 

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A really sad day for a great shipbuilding firm and Tyneside. Both the Tyne and Wear have had shipbuilding stripped over the years and this really leaves nothing.
The Clyde could easily have gone the same way and it is fortunate that there are still 3 yards in operation. Having said that, Ferguson/s at Port Glasgow are on a sticky wicket and I don/t know about the Scotstoun yard of BAe now that it appears that the rest of the Type 45s are going to be built at Govan. How far Govan can go on just naval/RFA contracts has yet to be seen although I believe replacements for some of the RFA FORTS is planned but how long that will take- look at the carrier fiasco- remains to be seen.
 

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sad, sad day on the tyne but we are used to these political blunders and who knows one day the big river will flow again, we are very proud of the ships that we built, and the men of the tyne that sailed them, we will never give up, we stand proud.
 

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wa002f0328 said:
sad, sad day on the tyne but we are used to these political blunders and who knows one day the big river will flow again, we are very proud of the ships that we built, and the men of the tyne that sailed them, we will never give up, we stand proud.
What political blunder are you talking about ?, the orders were placed, the obligations were obviously not met and the yard has paid ultimate price.
Someone needs a boot up the A***. (Cloud)
 

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william dillon said:
What political blunder are you talking about ?, the orders were placed, the obligations were obviously not met and the yard has paid ultimate price.
Someone needs a boot up the A***. (Cloud)
If one yard can do it and one can not what has gone wrong is it the workers, probably not as I have not heard of any strikes or anything so it must be the management as from what I read here the MOD has put trouble shooters in to swans to try to sort things out but twice the price and twice the time appears out of order.

Paul
 

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The Government stressed that the workforce was not to blame, the quality of the ship was first class and the over spend and delay was 100% down to management or mismanagement there is more to this than simple incompetence.
 

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dom

i read about two months ago that the latest sub.buildings were well over budget and way behind time,the management were very pleased,they were only two years behind schedle and not four
 

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My nephew served his time at Swans a few years ago. Since then he's moved between companies on the Tyne returning to Swans on a couple of occassions. He left Swan Hunters a few weeks ago to take up his trade elsewhere, one of the lucky ones.

Clem
 

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Discussion Starter #10
Political absurdity....

Nothing of course to with Gordon Brown (Favourite to be next UK Prime Minister) being Scottish....and all repair work contracts for naval vessels being transferred from Plymouth / Pompey to Rosyth in Scotland per chance...????

Also when the shipyard at Appledore (North Devon UK) tendered for building the 3 new ferries for the Plymouth - Torpoint ferries ( for those not geographically aware - it is "up the road") and really need the work to keep the yard open...where did the Government choose....yep...Scotland....600 miles "up the road"...and by golly...did they make a balls up of the new ferries....surprised...? No....nor me.....

If Swan Hunter changed their name to Mc Swan Hunter....they'd be building ships for decades....

And I'm Welsh....and annoyed.... :mad:

Rushie
 

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I dislike the sniping that goes on between the regions, tongue in cheek is one thing but when it gets serious its unhealthy and unhelpful.
 

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Discussion Starter #12
But this Scottish thing appears to be blatant.

Not just my thoughts Jeff....but allocation of naval contracts are being investigated by a Parliamentary Committee.

I have a few "local" views....like the new King Harry ferry...more or less exact build of the Torpoint ones was built in Holland...but the company insisted it was fitted out in Falmouth. Bloomin marvellous...local ferries for local people.

It's not sniping...it's as it happens.
 

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I've noticed recently it has become popular among certain political circles to bash the Scots to discredit Gordon Brown who I know to be a very intellegent person, the main reason is not the fact that he is from Scotland but the fact he is a little more left wing than Tony Blair and therefore has the Tory's worried. But I find it ironic when people based in the South of England complain when jobs are allocated to the north or Scotland.
 

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North East v South West....

I don't think it's ironic at all....I was plainly stating a case that I have first hand knowledge of. I could live on Pluto and still have the knowledge of local issues. You missed the point...it is being investigated by a Parliamentary Committee...no mc smoke without mc fire then.?

For your info Jeff I advise a group of MP's in Westminster on Local Transport issues so I know a hell of a lot of what is happening all around the country...I need to...it's my living.! My comments are not made without substance.

I'm not Scots bashing...they are my Celtic brethren....I love them.!

Interesting to hear your view on the shift of work from the Tyne to Govan though... (Eats)
 

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Sorry Rushie your not getting away with that.

I suppose you have forgotton about the movement of the submarine contract away from Rosyth to Devonport a few years ago which was full of political overtones.

The following is a snip from the Scotsman Newspaper 2003.

Ten years ago, when the Tory government awarded a multi-million-pound Trident nuclear submarine contract to the English naval base of Devonport, rather than to Rosyth, serious questions were asked about the motive for the decision.


Ministers of the day, such as Sir Malcolm Rifkind, the former defence secretary and MP for Edinburgh Pentlands, pointed to the fact that Devonport had undercut Rosyth by £8 million with its £240 million bid, but supporters of the Fife naval base argued otherwise.

The controversial move was attacked as a politically motivated decision to safeguard Conservative seats in the south of England, because Devonport was in a marginal Tory seat of Plymouth, while Rosyth was in solid Labour territory.

Supporters of Rosyth also insisted that the Scottish bid was much more robust.

So lets not change the thread which you started with a sensible point about Swan Hunter to move to a topic that will get a few people upset on here.

You usually post relevant topics for discussion but its not like you to try and wind people up.

Rgds
 

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Discussion Starter #18
Mc Truth

Cheers Hugh....

I think the article from the "Scotsman" newspaper was totally unbiased...and I apologise for regional disharmony.!

Exiled Taff.
 

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An afterthought....

Hi Hugh,

Just an update...the current MP for Devonport is Alison Seabeck....Labour..!!

She's sound....fights for local transport issues...a proper MP.

Meanwhile...being a lifelong Cowdenbeath fan I was extremely disgruntled that at our promotion match at the end of last season that Gordon Brown was there...! He's (apparently) a Raith Rovers fan...our arch enemies....being seen in the right place at the right time...?!!! The constituants of Lochgelly will not be taken in by it...! (Ouch)
 

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rushie said:
Cheers Hugh....

I think the article from the "Scotsman" newspaper was totally unbiased...and I apologise for regional disharmony.!

Exiled Taff.
Hi Rushie,

No personal offence taken.

Political interference has been unhelpful in the past and will be again. Unfortunately it's the poor sods who work in those places that are the most affected. Losing your job to satisfy a politicians majority (whether its North or South) is a pretty big kick in the teeth.

P.S. How the heck does a Welshman end up supporting Cowdenbeath :confused:
Rgds
 
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