Business News Column

Jul 2 2008 by Bill Gleeson, LDP Business editor

THE decision by the Minsitry of Defence to place a £180m contract with Northwestern Shiprepairers and Shipbuilders is a landmark for the local industry.

The shipyard sector has faced considerable uncertainties over the years.

This contract should mean that workers in our region can put those uncertainties aside for the foreseeable future. The order is worth an initial £180m, but that figure should, all being well, rise to £1bn over three decades. The contract will see Birkenhead maintain 11 Royal Fleet Auxiliary vessels, including fuel tankers, hospital ships, ammunition carriers and others. It allows Northwestern to lay the foundations for growth.

The shipyard's infrastructure, quaysides, workshops, cranes and everything else can recieve investment in the certain knowledge that the work exists to justify the outlay. And the same is true of the human element.

Apprentices can take up shipyard skills in the safe knowledge that there is a steady supply of local work for many years to come.

Nor should people be too worried by the fact that we have heard such promises of a golden tomorrow before. This time it’s for real. The deal marks a radical transformation in the fortunes of the area. Congratulations to Northwesterrn on pulling off such a momentous deal.