On 21 January 2025, Tan Dhesi MP, Chair of the Defence Committee, wrote a letter to the Secretary of State for Defence, Rt Hon John Healey MP, addressing significant concerns surrounding the recent announcement of Harland & Wolff entering administration and its proposed sale to Navantia UK.
The letter, published on 22 January, poses critical questions about the future of the company, its impact on UK defence shipbuilding, and the associated government policies.
The letter opens by highlighting the Defence Committee’s sustained interest in the state of UK defence shipbuilding, with Harland & Wolff’s challenges and its role in the Fleet Solid Support (FSS) Ship programme being central to their focus.
Chair Tan Dhesi stressed that “a thriving shipbuilding sector is vital to the UK economy and the Government’s growth plans” and emphasised the importance of robust parliamentary scrutiny.
The Committee raised several pressing questions for the Secretary of State to address by 3 February, including:
- Approval Process for Navantia UK Sale
The Committee asked for clarity on the approvals required for Navantia UK’s acquisition of Harland & Wolff and an update on the progress in achieving these approvals. - Details of the Sale
The letter queried which parts of Harland & Wolff are being purchased by Navantia UK and whether any parts of the business will remain outside the sale agreement. - Transparency on Administration Announcement
Referring to conflicting statements from government ministers, Dhesi noted: “During Northern Ireland questions on 15 January, the Northern Ireland Secretary stated that ‘the administration announcement, which involves the other side of the runway, is part of a process to ensure that the takeover by Navantia goes ahead.’ Why was this not mentioned when the sale was announced, as it may have impacted on suppliers’ decisions in respect of their contracts with Harland & Wolff?” - Government Consultations on Administration
The Committee sought details on what consultations the Government held with Harland & Wolff prior to its decision to file for administration. - Impact on Defence Programmes
The letter asked about the repercussions of Harland & Wolff’s administration on the Fleet Solid Support Ship programme and other projects, such as regenerating the ex-Royal Navy mine-hunting vessel HMS Quorn for the Lithuanian Navy. - Suspension of the M55 Project
Acknowledging that the M55 project has been on hold since September 2024, Dhesi questioned the Government’s efforts to restart the programme and ensure that suppliers are paid. - Supplier Relationships
Quoting the Northern Ireland Secretary’s statement that “ultimately the question of how to relate to those suppliers is a commercial matter for Navantia,” the letter demanded clarity on government discussions with Navantia about building relationships with all suppliers, not just those involved in the FSS Ship programme. - Liabilities to Suppliers and Creditors
The Committee asked whether the Government or Royal Navy holds any liabilities towards Harland & Wolff’s suppliers and creditors. - Support for Suppliers
The final question urged the Government to outline any actions it is taking to support the suppliers of Harland & Wolff during this uncertain period.
It concludes with a call for “comprehensive answers to our questions, not least to help inform Harland & Wolff’s workers, their families, the company’s suppliers, and the wider shipbuilding community of the Government’s plans.”
The Committee has also copied the letter to the Secretaries of State for Business and Trade and for Northern Ireland, reflecting the multifaceted nature of the issue. The response from the Secretary of State for Defence is expected by 3 February 2025, which will likely play a pivotal role in addressing concerns regarding the future of Harland & Wolff and its role in the UK’s defence shipbuilding landscape.
