1 Introduction
1. On 25 July 2007 the Secretary of State for Defence announced that the Ministry of Defence had agreed its comprehensive spending review settlement for 2008-2011 with the Treasury. At the same time he confirmed the Future Carrier programme, saying:
This settlement gives the MoD the financial certainty required to continue delivering [...] success. [...] At the same time as ensuring success on current operations, and support for our people, this settlement enables us to invest in the capabilities that we will need for the future. I am pleased to be able to confirm today that we will place orders for two 65,000 tonne aircraft carriers to provide our front-line forces with the modern, world-class capabilities that they will need over the coming decades. These will be named HMS Queen Elizabeth and HMS Prince of Wales. They are expected to enter service in 2014 and 2016, respectively.[1]
The contract for the carriers is expected to support 10,000 jobs across the UK, including those in the BAE Surface Fleet Solutions shipyards at Govan and Scotstoun, jobs at the Babcock Marine yard at Rosyth and those at the large number of sub-contractors who will be involved.
2. The Future Carrier programme (CVF) follows the Strategic Defence Review in 1998 which proposed that the current 22,000 tonne Invincible aircraft carriers would be replaced with two larger carriers from which a more powerful air group could operate. Up to 36 Joint Strike Fighters and four Airborne Early Warning aircraft could be embarked on each carrier. A significant proportion of the construction work for the carriers will take place in Scotland, mainly in Glasgow, where BAE Surface Fleet Solutions have two shipyards and in Rosyth where Babcock Marine are based.
3. This inquiry set out to consider how Scotland could maximise the benefits from defence investment, particularly the CVF programme. We aimed to examine:
the Scottish skills base: the adequacy of the current skills base, the provision of training and the balance between specialist and transferable skills for future defence industry needs;
the distribution of jobs and economic benefit across Scotland;
the opportunities for associated industries and the wider supply chain, including small businesses across Scotland.
4. The Ministry of Defence is responsible for defence procurement across the United Kingdom. Trade and industry, financial and economic matters and employment are reserved matters, although related issues, such as economic development, education and training are the responsibility of the Scottish Parliament. This Committee's inquiry was therefore focused on employment and skills in Scotland in relation to the defence industry.
5. The Committee held five evidence sessions in Westminster, one evidence session in Glasgow and visited BAE shipyards on the Clyde and Thales UK in Glasgow. We took evidence from a range of companies and organisations including Scottish Enterprise, Society of British Aerospace Companies (SBAC) Scotland, RAND UK, UKNEST, Skills Development Scotland and Govan High School. We also took evidence from Baroness Taylor, Minister for Defence Equipment and Support, Dr Andrew Tyler, Chief Operating Officer Defence Equipment and Support and Mr Amyas Morse, Commercial Director, Ministry of Defence.
1 HC Deb, 25 July 2007, Col 865 Back
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