Stormont ministers urged to ‘go directly to PM’ over future of Harland and Wolff

The historic shipbuilder has announced that its holding company is to go into administration.

The firm said between 50-60 immediate redundancies are expected but that staff employed at its four shipyards are not affected.

Harland and Wolff, which famously built the Titanic, has four shipyards – one in Belfast, two in Scotland (Methil on the Firth of Forth and Arnish on the Isle of Lewis) and one in England (Appledore in north Devon).

It is the second time the business has been placed in administration in five years.

The administration process will be confined to the holding company, Harland & Wolff Group Holdings PLC, and the operational companies which run the yards are expected to continue trading.

The matter was raised in the Assembly by way of an urgent question to Economy Minister Conor Murphy on Tuesday by East Belfast DUP MLA David Brooks.

Infrastructure Minister John O’Dowd took the question in the absence of Mr Murphy who is currently in North America on a mission aimed at strengthening economic ties and promoting dual market access.

He read a statement from Mr Murphy describing the development as “disappointing news” and also noting “news reports that a number of parties have expressed interest in the company with submission of first bids to close this week”.

He said Mr Murphy has written to Northern Ireland Secretary Hilary Benn and spoken to a number of government ministers and senior officials to “highlight the importance of Harland and Wolff to the region and the importance of the British Government’s continued support”.

Mr Brooks described Harland and Wolff as not just a large employer within his constituency but an “iconic industry for the whole of Northern Ireland”.

Mr O’Dowd said he could assure him that Mr Murphy and his department “are focused on doing everything they can to secure the future of the yard”.

UUP MLA Steve Aiken asked for assurance that a contract to build support ships for the Royal Navy will still come to Belfast, and urged that Mr Murphy, through First Minister Michelle O’Neill and deputy First Minister Emma Little-Pengelly, makes an approach to “go directly to the Prime Minister” around the contract.

“Because without that, shipbuilding is finished,” he said.

Mr O’Dowd responded: “I don’t think we should be as definitive in terms of the finishing of shipbuilding in Belfast as the result of a, b or c, but I certainly will make sure that his comments and call are passed on to Minister Murphy for him to engage as he feels fit with the First and deputy First Minister.”

Earlier, East Belfast MP Gavin Robinson said the “mood music is good” surrounding interest in the operations of the historic firm.

Mr Robinson told the BBC’s Good Morning Ulster programme: “I heard some more encouraging noises yesterday to say that Government is keeping a close eye on this, that they are engaging with the company.

“But I think I would have been, and the unions would have liked to have been reassured by a greater interest over the last number of months.

“But the mood music is good about the interest in Harland and Wolff.

“The whole of the company is not in administration, though the London office is. The Belfast yard is pivotal to the future.”

He added: “The Belfast yard and the achievement in securing, as we did, an MoD contract worth £1.6 billion to build fleet support ships is the asset, is the thing which is creating the interest in the sales process.”

Insolvency practitioners Teneo will act as administrators and shares will be delisted.

The company is part of a consortium that landed a major contract to build new fleet solid support ships for the Royal Navy.

It had applied for a £200 million loan guarantee from the Government as part of efforts to restructure its finances.

However, the Government decided in August not to act as a guarantor on the lending – while also ruling out direct funding to maintain the company’s liquidity.

In terms of finding a new owner for the Belfast operation, Mr Robinson said Spain’s state-owned shipbuilder Navantia was the “most obvious” candidate.

He said: “I met with Navantia at the time that Harland and Wolff and Navantia got into a consortium.

“I have had discussions as they advance to achieve the order and clearly they have a unique financial interest in Belfast particularly given the contract that is there and the knowledge to proceed with that contract.”

Meanwhile, Harland and Wolff interim executive chairman Russell Downs has said there is a strong case for keeping the company’s four shipyards under a single owner.

He told the BBC’s Today programme that keeping the yards together was “sensible from an operating perspective”.

He added: “Some yards may be owned by one owner with other yards owned by another, so we’ll just have to see where the process gets to.”