A Spanish takeover of Titanic shipbuilder Harland & Wolff has been blasted as a “smoke and mirrors” deal that could see Royal Navy ships assembled outside Britain.
Navantia, Spain’s state-owned shipbuilder, is purchasing all four sites around the UK after the parent company of the yards fell into administration.
About 1,000 jobs are to be saved at shipyards in Northern Ireland, Scotland and England.
Business Secretary Jonathan Reynolds said the deal was “good for jobs” and “good for national security”.
He said the deal was “a major vote of confidence in the UK from Navantia”.
Asked whether the government had sweetened the deal for Navantia by changing the terms of a contract to deliver three Royal Navy support ships, Mr Reynolds said there had been a “minor revision” to the contract to include “more support” from the government.
Hilary Benn, the Northern Ireland Secretary, said the deal was “great news for Belfast”.
“Harland and Wolff is an iconic, internationally-renowned company with a long and proud history,” he said.
“I am delighted that, with this deal, it will now have a bright future ahead.”
But Mark Francois, the shadow armed forces minister, said he had major concerns about where the ships will be assembled.
He told the Daily Express: “I was in the Commons for today’s Statement on Harland & Wolf and, unfortunately, there’s a lot of ‘smoke and mirrors’ about this deal.
“Crucially, the Business Secretary repeatedly declined to confirm that the three new vital Fleet Solid Support Ships – to resupply our aircraft carriers at sea – will be assembled in Belfast; leading to suspicions that, while UK yards may build parts of them, they will be finally assembled and all the key systems will be integrated into their hulls in Navantia’s parent yard, in Spain.
“If that’s the case then this announcement isn’t half as good as it first appears.”
The GMB union welcomed the deal but said it remained cautious about the future of Harland’s yards.
Matt Roberts, GMB’s national officer, said: “Today’s announcement is a hugely positive step for retaining UK sovereign manufacturing.
“But despite all four yards remaining open, GMB remains cautious. Without a steady drum beat of work these yards will continue to struggle.
“GMB will continue the fight to ensure that does not happen.”
Navantia employs a core staff of about 1,000 in Belfast, Appledore in England and Methil and Arnish in Scotland.
The company has been a significant recipient of funding from the European Commission as part of the European Defence Fund.
Joining the fund is a possible objective for the UK-EU security reset, set to be discussed at a summit early in the new year.
Navantia’s main shipyard is at Cadiz in southern Spain.
It employs more than 4,000 people and has an annual turnover of about €1.3billion (£835million).
