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Scottish Secretary hails landmark shipbuilding deal

Jim Murphy has said the future of the Clyde has been secured for the next 15 years.

21 July 2009 20:13 GMT

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Scottish Secretary hails landmark shipbuilding deal

The Scottish Secretary has claimed a new defence deal will help secure shipbuilding on the Clyde for the next 15 years.

Jim Murphy made the claim after the formal signing of a "terms of business agreement" between warship builders BVT and the Ministry of Defence.

The deal guarantees the firm - which operates the Govan and Scotstoun shipyards in Glasgow - a minimum level of work, worth £230 million a year, over the next 15 years.

The deal is intended to secure skills in the UK after two giant new aircraft carriers are completed, and the MoD says the deal will save it hundreds of millions of pounds.

Mr Murphy said: "This agreement provides a bright and brilliant future for shipbuilding on the Clyde.

"It also gives the industry the framework it needs to plan confidently for the future.

"That means jobs and it means skills for Scotland and it is great news, especially coming at a time of economic uncertainty.

"The British Government strongly supports the Clyde yards - this announcement shows that we back up our words with action."

Defence Minister Quentin Davies said the agreement would help BVT build a world-class business, balancing the supply of its services to MoD demand while being able to plan for other markets like exports.

"The guarantee of 15 years worth of work is especially pleasing to announce in the current economic climate," he said.

"The contract we have announced today will help industry preserve a valuable skills base as the sector restructures to meet our future needs and will lead to significant financial benefits for the MOD and the Royal Navy.

"In return, BVT has committed to the transformation of the sector into a sustainable entity for the future."
 

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