Royal Navy shipbuilding work shifts to Spain, risking 500 jobs in Belfast

Harland & Wolff, the Belfast shipyard known for building the Titanic, faces a crisis as it has called in administrators, jeopardizing a £1.6 billion contract to build support ships for the Royal Navy. Originally, the project involved collaboration with Navantia, a Spanish shipbuilding company, to construct various sections of the vessels in their respective yards. However, the recent financial troubles at Harland & Wolff have led to concerns that all work may be transferred to Cadiz, Spain, risking 500 jobs in Northern Ireland. The UK government had previously denied Harland & Wolff a £200 million loan guarantee, which was crucial for the company's financial stability. This decision resulted in the departure of the company's CEO and the appointment of restructuring experts to seek potential buyers. The urgency of the situation is heightened by the Royal Navy's need for support ships to effectively utilize its new aircraft carriers, HMS Queen Elizabeth and Prince of Wales. Currently, the only operational support ship, RFA Fort Victoria, is undergoing a lengthy refit, further complicating the Navy's operational capabilities. The government is exploring options, including the possibility of UK companies acquiring Harland & Wolff, but any new negotiations could delay production and increase costs for taxpayers. The situation reflects broader issues within the UK shipbuilding industry and the challenges faced by Labour in managing the fallout from previous government decisions. The preferred solution appears to be for Navantia to take over the project to ensure timely delivery and adherence to budget constraints.