Scott Bingham The Politics Show South West

Future of Devonport Dockyard threatened

The proposed merger of two major players in the defence and shipbuilding industry could threaten the future of Devonport Dockyard.

BAE Systems and Vosper Thorneycroft have expressed an interest in a joint bid for Babcock International.

The merger is very much in line with Government policy to unite the fragmented defence industry.

BAE already has shipyards on the Clyde and at Barrow-in-Furness in Cumbria.

If it were to take over Babcock's naval shipyard at Rosyth and its submarine refitting base at Faslane, along with Vosper Thorneycroft's Portsmouth yard, the conglomerate would form a formidable opponent to Devonport in an already fiercely competitive market.

"The merger is between the ship builders and the ship repairers and Devonport's key role, the refitting of our nuclear deterrent, is very different," says defence analyst John Reed.

"It's difficult to see how it would fit in."

DML is still the UK's ONLY refitting and defuelling site for the Royal Navy's nuclear-powered submarine fleet.

But by 2008 it will be down to its last Vanguard-class refit and the debate over the future of Trident continues.

Maintenance work on other submarines is a shrinking market. DML has already announced it will shed 900 jobs over the next two years because of this and a shortage of surface ship work.

"The Royal Navy has double the ship repair capacity that it needs," says Mike Critchley, of Warship World magazine.

"At the moment, because of its nuclear role, there is a need for Devonport on the naval scene, but as the fleet gets smaller you have to ask the question whether these refits could be done elsewhere."

Around 4,800 people currently work at DML. As the largest private sector employer in Devon and Cornwall it is hugely important to the local economy.

Every �1m of direct income generated at Devonport, generates another �300,000 in Devon and Cornwall. Further job losses would have a massive impact.

Local MPs have now set up a task force to look into ways to help maintain the yard and help it secure more work in the future.

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