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23 June 2008
‘Confident’ over carriers
A Labour MSP said today he remained confident the contract to build the Royal Navy’s two new aircraft carriers would be signed this summer (writes Lars Niven).
John Park was responding to fears raised by the Scottish Affairs Committee that any delay could cost the Scottish shipbuilding industry jobs.

Defence secretary Des Browne confirmed last month it will go ahead, although the deal, known as CVF, remains as yet unsigned.

A report released by the committee today points out that 10 months has elapsed since the programme to build the HMS Queen Elizabeth and the HMS Prince of Wales was confirmed.

“We are concerned a delay in the construction of CVF and a gap in the workload could lead to job losses and damage the shipbuilding skills base the UK needs to support it if it wishes to retain sovereign capabilities in key areas,” the report states.

“Although the Government has repeatedly said there will be no delay to the construction phase, continued delays to the contract-signing have caused concern.”

It urges the Ministry of Defence to take robust action to “avoid or limit” further delays.

Rosyth Dockyard and Govan in Glasgow are both scheduled to play a major part in the £4 billion contract.

The supercarriers are so big they will be built in sections at shipyards across the UK before being towed to Rosyth for final assembly.

The Fife yard’s owners, Babcock, are understood to have won up to £800 million worth of work, which is likely to create an additional 200 jobs.

Mr Park, a former union leader at Rosyth, said the committee’s report gave him no cause for concern, pointing out the MoD had already given the two main companies involved, BAE Systems and the VT Group, letters of guarantee the deal will go ahead.

An MoD spokesman said the contracts were expected to be signed “very soon”. The Tele understands that could be as early as next week.