Maritime UK, representing the UK’s shipping, ports, services, engineering and leisure marine industries, has welcomed Labour’s focus on procurement, believing it a key component of a modern industrial strategy. The group believes it is right for the government to use its purchasing power to support British industry, calling not for protectionism, but for a level playing field for UK companies.
Britain is an internationalist, free trading, maritime nation. Whilst that must remain so, we need to review the way we procure to ensure British companies are not at a disadvantage. We’re not calling for protectionism but for UK firms to be able to compete on a level playing field when it comes to government procurement,
…said Chairman, David Dingle.
It is completely right that UK business is encouraged to bid for the procurement of the three new Fleet Solid Support Ships to support the Royal Navy. The UK is a maritime nation and has the skills and expertise to build these ships at home. There is a strong argument that RFA ships should be built here in the same way as Royal Navy ships are. We believe that would be in the spirit of the National Shipbuilding Strategy.
According to Mr. Dingle, projects like the RRS David Attenborough, one of the most sophisticated scientific vessels in the world, which has evidenced the UK’s expertise and capacity, are possible only when the UK Government provides UK manufacturers with a level playing field to compete against international counterparts. Many yards competing for the RFA contract overseas are subsidised by their governments.
There is a strong argument to exclude overseas yards subsidised by their governments. It’s very difficult for British companies to compete on that basis. We need Government to take a more holistic view when considering the terms for new procurement. While initial capital expenditure for UK projects may come at a slight premium, the long term benefits to UK economy through employment, training and productivity throughout a considerable supply chain will vastly outweigh the primary saving. What’s more, we’ll continue to develop the skills and expertise that will translate into further exports. It’s a fortuitous – and crucially, sustainable – cycle.
