The statement just released by BAESystems on the closure of a shipyard in Portsmouth, (it will however continue in reduced form to repair and refit existing seagoing vessels) and restructure of work elsewhere should be closely examined by our own leather coated lothario, the dear leader and explained in basic terms to the likes of Cllr Turnip...
Simply the BAESystems job losses are not massive - a POSH match audience on a bad day, say under 2,000 - BUT it points up the way industry is going.
If you compare our shipyards with those in Norway - Kværner", although in 2008, Aker Kværner was renamed Aker Solutions, partly due to the difficulty that most non-Norwegian people found in pronouncing "Kværner"; its another sign they will be looking for all types of engineering contracts in Europe including the UK the letter A for Aker being at the top of all tender lists. Cunning these Norwegians!
The point being they actually manufacture the goods from scratch, not just import the components by the containership load from China (as ECO-Systems a solar company with a strong dear leader tie seem to do).
We need to see the 'Missed Opportunity Peterborough' bid for engineering and manufacturing/design projects to keep firms like Perkins and other major Peterborough afloat, and knock the whole mega expensive PCC associated Blue Sky Peterborough Ltd deal on the head. Green is no longer on the Conservative Party essential list, and by the time its working properly (REMEMBER FREEMANS????) the surplus (profit will be less than marginal).
As soon as the way over the top eyewatering fees being paid out from PCC public funds - they should in any case be spent on our ageing population - dry up the 'so called expert team' assembled will also vanish, just leaving the council with a stack of bills and worthless presentations. They should in any case have been hired (if at all) on a success fee basis only. No upfront costs at all. The Peterborough City Council (ie Chief Executive) also needs to rapidly sort out the 'Monitoring Officer' nightly hopping into bed with the target of her monitoring, the multi portfolioed Blue Sky Peterborough Managing Director - even if they are married.... but it will give him more time to pump up the Cathedral Square fountains... currently a six inch squirt.... hmmm.
Full statement from BAE on shipbuilding in Portsmouth and Glasgow follows:
BAE Systems has reached agreement in principle with HM Government on measures to enable the implementation of a restructuring of its UK naval ships business.
The agreement will result in:
• Restructuring of the contract for the Queen Elizabeth Class Aircraft Carrier programme.
• Provision of additional shipbuilding work prior to the start of the Type 26 Global Combat Ships programme.
• Rationalisation of the UK naval ship business to match future capacity requirements.
In 2009, BAE Systems entered into a Terms of Business Agreement (ToBA) with the Ministry of Defence that provided an overarching framework for significant naval shipbuilding efficiency improvements in exchange for commitments to fund rationalisation and sustainment of capability in the sector. The agreements announced today, together with an anticipated contract for the design and manufacture of the Type 26 Global Combat Ships programme, will progressively replace that ToBA.
Queen Elizabeth Class Aircraft Carrier
BAE Systems, with the other participants in the Aircraft Carrier Alliance, has agreed changes to the Queen Elizabeth Class Aircraft Carrier contract. Under the revised terms, the contract will be amended to accommodate programme changes and activities previously excluded from the contract.
Under the new Target Cost contract the industrial participants’ fee will move to a 50:50 risk share arrangement providing greater cost performance incentives. The maximum risk to the industrial participants will continue to be limited to the loss of their profit opportunity.
The revised contract reflects the increased maturity of the programme, with structural assembly of the first of class vessel now substantially complete.
Interim shipbuilding workload
A significant reduction in workload will follow the peak of activity on the Aircraft Carrier programme, the six Type 45 destroyers and two export contracts. The anticipated Type 26 programme will, in future years, address some of that workload reduction. In the interim period, a proposed contract for the manufacture of three Offshore Patrol Vessels, announced today, will provide additional capability for the Royal Navy and sustain key shipbuilding skills.
Restructuring of the Naval Shipbuilding business
Following detailed discussions about how best to sustain the long-term capability to deliver complex warships, BAE Systems has agreed with the UK Ministry of Defence that Glasgow would be the most effective location for the manufacture of the future Type 26 ships. Consequently, and subject to consultation with trade union representatives, the Company proposes to consolidate its shipbuilding operations in Glasgow with investments in facilities to create a world-class capability, positioning it to deliver an affordable Type 26 programme for the Royal Navy.
Under these proposals, shipbuilding operations at Portsmouth will cease in the second half of 2014. Subject to consultation, Lower Block 05 and Upper Blocks 07 and 14 of the second Queen Elizabeth Class Aircraft Carrier will be allocated to Glasgow.
The Company remains committed to continued investment in the Portsmouth area as the centre of its Maritime Services and high-end naval equipment and combat systems business.
Consultation will commence on a total employee reduction of 1,775 that is expected to result from these restructuring proposals, including 940 in Portsmouth in 2014 and 835 across Filton, Glasgow and Rosyth, progressively through to 2016.
The cost of the restructuring will be borne by the Ministry of Defence.
The implementation of these restructuring activities will sustain BAE Systems’ capability to deliver complex warships for the Royal Navy and secure the employment of thousands of highly skilled employees across the UK.
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