CONFIDENTIAL
SHIPBUILDING
GENERAL BRIEFING
BRITISH SHIPBUILDERS (BS)
Finance
BS's financial performance is greatly improved. Trading losses were over £100m (
over £100m (after crediting Intervention Fund) in 1979/80; in 1981/82 BS expect to be below their loss target of £25m. Their EFL of £250m in 1979/80 has been halved to a provisional £125m announced for 1982/83.
At the same time IF subsidies have been reduced
in 1979/80 to £45m in 1981/82.
G
£65m
Defence Cuts
-
The cuts will reduce job opportunities in surface warship
building; actual job losses will depend on BS's success in gaining alternative work for example Cammell Laird and Scott Lithgow which have broken into the offshore market.
BS, supported by the Defence Sales Organisation, are putting much effort into winning export orders for larger warships.
Shiprepair
The BS Chairman has given assurances, publicly to the Industry and Trade Select Committee, that it is not his policy
to quote uneconomic prices and that he intends to get
shiprepair yards into profit or close them. Employment on ship repairing in BS has halved since 1978 to around 4000
now. DOI Ministers are willing to take up with BS complaints of unfair pricing.
Withdrawal from Shiprepair
Under current legislation selling off any of BS's major
activities, such as shiprepair, is a matter for BS.
BS has a statutory duty to engage in shiprepair.
Moreover,