Select Committee on Scottish Affairs Fifth Report




4 June 2002

  Strategy recommendations ResponsibilityProgress
1UK government shipbuilding policy should be restated in the light of this report. DTI, MoDUK Government shipbuilding policy will be restated within the context of a wider industry-led policy statement. A final draft of this statement, including a specific reference to warships, will be considered sat the Shipbuilding and Marine Industries Forum on 19 June 2002.
2The creation of a Maritime Industry Co-ordinator should be considered. DTIThe reconfigured Shipbuilding and Marine Industries Forum and its steering group has the scope to undertake many of the functions of the proposed coordinator described in the task force's report. The Forum will keep this position under constant review.
3The Scottish Executive and DTI should actively encourage Scotland's remaining shipbuilding business to evaluate the potential for collaborative ways of working across the UK industry. Scottish
This is being addressed at the UK level through the Shipbuilding and Marine industries Forum with the SSA and is largely covered by 2 above. Little formal progress has been made, but there is an increasing degree of collaboration at the local level, eg between Ferguson and BAE SYSTEMS Marine.
4The Scottish Executive and Scotland Office should continue to support a positive resolution of the current uncertainty on Shipbuilders' Relief for export warships. Scottish
UK Government is reviewing this. Officials are keeping themselves informed.
5In addition to current government activity, every appropriate opportunity should be taken to include Scotland Office Ministers in promoting Clydeside's case in securing new export orders. Scotland
DESO keeps Scotland Office officials informed of all relevant sales campaigns to ensure that Scotland Office Ministers have access to opportunities to support Clydeside companies' ventures in the defence export market.
6The Government should consider whether there are lessons to be learnt from other industrial sectors in the promotion of exports where there are competing bidders. DTI , MoDDTI's approach was to support one UK bidder only where aid was required through a "chosen instrument" approach. This involved the selection of one company to receive aid, based on criteria such as price, quality, credibility and experience in the particular market place. The MoD continues to assess, on a case-by-case basis, the best way of supporting bids by UK warship builders.
7The DTI should continue to engage with the MoD to consider the industrial implications of procurement strategies. DTI, MoDThis is continuing; there are well-established formal and informal mechanisms at different levels to ensure that this happens.
8The Government should continue to take account of the detailed industrial implications of its procurement decisions for naval shipbuilding, including design and integration capabilities. MoDMoD is well aware of the importance of retaining a healthy industrial base for warship building in the UK. (See also 7 above.)
9As the specification forreplacement vessels for the Royal Fleet Auxillary becomes clear, early clarification on their designation as warships would be welcomed. MoDThe specifications have not yet been identified, although the MoD will endeavour to identify, as soon as possible, whether new afloat support vessels will be designated as "warlike stock".
10The current high level of support from the most senior Scottish and UK government Ministers for the industry should continue. Scottish and UK GovernmentsSupport is continuing in an ongoing basis.
11The Scottish Executive should carry out an audit of the high value added activities within the shipbuilding industries in order to position it within the appropriate context of its industrial policy. Scottish ExecutiveAudit has now commenced.
12The Scottish Executive should assess the potential of offset as an export development opportunity for appropriate Scottish companies. Scottish
Is currently being investigated re: aerospace. Will investigate for shipbuilding parallel to action on recommendation 11. The DESO Offset Officer is available to assist British defence companies in formulating and delivering complex offset packages which could be of wider benefit to British industry.
13The Scottish Executive should assess and evaluate related opportunities for Scotland's knowledge based industrial development, including wave energy generation and remotely operated vehicles (ROVs). Scottish ExecutiveCommenced. Funding has now been allocated to commission further research into strategy and exploitation of Scottish expertise in Wave Energy.
14The Scottish Executive and the DTI should consider mechanisms for promoting the prospects for this industry as an appropriate route for investment and career development. Scottish Executive, DTIScottish Executive has implemented Make it in Scotland campaign to encourage S2 pupils to consider manufacturing as a career choice. Campaign was successfully piloted in East Ayrshire in 2001 and extended to Ayrshire, Glasgow and Angus in 2002. It will be rolled-out throughout Scotland in 2002-03 by Careers Scotland. BAE SYSTEMS Marine participated in the 2002 roadshows in Glasgow.
At the UK level, the Chamber of Shipping is developing a Sea Blindness campaign, part of which promotes career opportunities in marine, including shipbuilding and ship repair and on board ships. DTI is also working with EMTA to identify training needs and develop training programmes.
15BAE SYSTEMS Marine should continue to pursue commercial work where this is compatible with warship capacity demands and a sound business case can be made. BAE SYSTEMS MarineUnderstand that BAE SYSTEMS is pursuing this as appropriate.

  Skills recommendations ResponsibilityProgress
16BAE SYSTEMS Marine should develop a relationship with Careers Scotland, Glasgow City Council Education Directorate's Going to Work in Glasgow campaign and the Scottish Executive's Make it in Scotland campaign to continue to attract young people as modern apprentices. BAE SYSTEMS, Careers Scotland, GCC, Scottish Executive BAE SYSTEMS Marine participated in the 2002 Make it in Scotland roadshows in Glasgow (see 14 above).
BAE SYSTEMS Marine continue to recruit Modern Apprentices; the precise numbers in each trade are still under review.
17The company should work in partnership with the trade unions to create a network of learning representatives who would be able to give information, advice and guidance on learning and development opportunities. BAE SYSTEMSBAE SYSTEMS Marine is supporting the introduction of learning representatives across the company. Work has been done on understanding the effectiveness of learning representatives on companies that have piloted the scheme, eg. BAE SYSTEMS Airbus in Broughton. A working party will be set up in June to establish the number of representatives and the process for identifying and delivering training needs. Training for the representatives will be provided through the TU.
18The company should set up a learning centre in the Govan yard, as already exists in Scotstoun, to ensure easier access for the Clydeside workforce. BAE SYSTEMSA site for the Govan OL centre has been identified and work will begin this month on setting up the facility which will be operational in June. This will be manned through the company's HR organisation together; the intention is to establish a partnership with Cardonald College to run the centre. The Scotstoun OL centre will also be refurbished to provide a common service.
19Further roll-out of development of cross-skilling in support of the introduction of concurrent working is necessary. Further development of the training needs analysis will also be required. BAE SYSTEMSThe 2002 HR strategy incorporates an objective to access Marine's capability with a view to identifying skill gaps & development needs for the future. This activity will build on the original training needs analysis produced for the task force. It will also incorporate the findings from the activity analysis project which is ongoing within the IBS project. This is directly linked to the new role profiles identified in the company's recent change initiative. A total of 45 people have been involved in some form of cross-skill training.
20BAE SYSTEMS Marine should continue to exploit e-learning developments. BAE SYSTEMSMarine now has the capability for employees to access Netg e-learning material at their workplace and at home. The Scotstoun OLC is already part of the Learn Direct network and will be capable of accessing the REAL network when Govan is on line.
21Externally certificated qualifications should be used, so that the company can be certain of the full extent of employee capabilities. BAE SYSTEMSAll New Start programmes are NVQ accredited. The Marine Out of Hours programme offers accredited course e.g. 16th edition PAT-testing courses in Scotstoun. 25 people have been accredited to date. The material handling courses e.g. Fork lift truck, Cherry pickers, scissor lifts etc are externally accredited. Every effort is being made to ensure training meets the standards of an accreditation body wherever possible.
22The reappraisal of the relationship between the build strategy and skills requires further investigation of how concurrent working may be implemented. The 6 Sigma pilot should be applied to all areas of the build strategy. The philosophy and principles of the core skills embedded in apprenticeships will be required to introduce successful concurrent working. BAE SYSTEMSA review of Apprentice training is examining the skills gained in their training in relation to the skills needed in the business. This is underway across Marine including the Clyde and is drawing on the resources of EMTA who will ensure the standard is acceptable across the UK shipbuilding industry. This work will also help develop the future skills of the company's existing core workforce.

  Community Regeneration and Land Use recommendations ResponsibilityProgress
23Significant investment should be made in the Scotstoun and Govan areas to improve the economic performance of and facilities for the communities. SEG, SEn GCC, Scottish Executive, etc See separate update on table 4.1 projects.
24Funding should be secured as early as possible for the high priority projects listed in table 4.1 to facilitate the regeneration process. SEG, SEn GCC, Scottish Executive, etc As above.
25These opportunities and initiatives should be considered by the emerging Clyde working group chaired by Scottish Enterprise and it should be invited to take matters forward with energy and commitment. Scottish EnterpriseCurrently ongoing and being given high priority
26Progress on these opportunities and initiatives should be monitored and reported to the Minister for Enterprise, Transport and Lifelong Learning. Scottish ExecutiveOngoing.

  Redundancy Management recommendations ResponsibilityProgress
27Scottish Enterprise should develop appropriate short term 'conversion' training programmes for mature workers seeking to skill-up in order to take advantage of opportunities in growth industries, particularly in the oil and gas industry and in gas central heating installation. Scottish EnterpriseAchieved. Agreed site is now Reid Kerr CFE. Expect training ready start within next few weeks.
Five people are about to start Transco training with Glasgow City Council.
28Scottish Enterprise should fund a short-term training and employment subsidy programme to encourage employers to recruit and retrain redundant shipyard workers six months after redundancy. Scottish EnterpriseOngoing.

  Monitoring recommendation ResponsibilityProgress
29The Clyde Shipyards Task Force should reconvene in June and December 2002 to monitor implementation and to ensure that progress has been made on these recommendations above. Scottish ExecutiveMeetings are planned 5 June and 2 December 2002.

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