Report to call for naval shipbuilding shake-up

Maritime November 29, 2016

A report by Sir John Parker examining Royal Navy shipbuilding published today is to call for fundamental changes to the way UK naval shipbuilding is undertaken.

The government commissioned Sir John, chairman of mining company Anglo American, to investigate how British naval shipbuilding could remain sustainable and focus on exports.

Following six months analysis, the Industrialist’s report is expected to recommend that the Ministry of Defence end its exclusive deal with BAE Systems.

The company is building two aircraft carriers and has a contract for eight Type 26 frigates.

The report is to recommend that future contracts be put out to tender, allowing other businesses to bid on them.

It has yet to be confirmed where the eight smaller general purpose Type 31 frigates will be built.

The Defence Secretary, Sir Michael Fallon, said that Sir John’s report would provide a “fundamental re-appraisal” on the UK’s naval shipbuilding industry.

He said: “The government welcomes this report and shares Sir John’s ambition for shipbuilding. We are committed to deliver a National Shipbuilding Strategy.

“We see it as a vital part of our Industrial Strategy to rebalance Britain. We will examine its detailed recommendations to inform our National Shipbuilding Strategy that will be published next spring.”

The report also suggests that modular building could have a significant role to play in future shipbuilding, allowing component-shipping parts to be manufactured across the UK before being put together at a central hub.

Sir Michael said that this method of production has already demonstrated how successful it can be in the building of the Queen Elizabeth Aircraft Carriers. He said they demonstrated “the success of such an approach, with multiple shipyards and hundreds of companies working together and benefiting from the aircraft carrier build.”