The Scottish Parliament has debated the future of Scotland’s exports, with Conservative and Labour MSPs pressing the government to acknowledge the role of defence contracts, including the landmark £10 billion Type 26 frigate deal with Norway.

Murdo Fraser (Con, Mid Scotland and Fife) argued that the Scottish Government’s latest trade strategy overlooked key sectors, despite what he called “remarkable good news” for shipbuilding and defence exports. He pointed to the BAE Systems contract that will support thousands of jobs in Glasgow and supply chains across Scotland.

Fraser added that Babcock’s Rosyth yard is competing for a £1 billion contract to build frigates for Denmark, describing it as evidence of Scotland’s naval expertise. “That is a real tribute to the expertise in naval vessel construction that we have established in Scotland,” he said.

Labour’s Daniel Johnson echoed that point, urging government support for Babcock’s Danish bid. Paul Sweeney (Lab, Glasgow) pressed the SNP on what he described as a lack of engagement with the UK’s National Shipbuilding Strategy, despite Scotland hosting the bulk of the industry.

Stephen Kerr (Con, Central Scotland) celebrated the Norway deal, claiming it vindicated UK policy. “It will sustain more than 1,200 jobs directly and thousands more in the supply chain,” he said. “Critics scoffed at the national shipbuilding strategy when it was launched, but today those critics owe an apology to the men and women on the Clyde.”

Kerr also highlighted the international interest in the Type 31 design being built at Rosyth, pointing to sales to Canada and Australia worth more than £1 billion. He accused the Scottish Government of being reluctant to praise the sector. “SNP members cannot bring themselves to celebrate Scotland’s successes in the sector for ideological reasons,” he told MSPs.

Richard Lochhead, Minister for Business and Employment, rejected that charge, noting that the Scottish Government had provided over £90 million in support to the defence sector since 2007. He insisted the industry was recognised as an important contributor to the economy.

The debate also touched on wider trade challenges. Fraser warned that onshore exports had fallen by 12 per cent between 2018 and 2022, contrasting this with growth in global trade. He also pointed to tariffs on whisky in the United States and argued that leaving the UK single market to rejoin the EU would damage Scottish exporters.

For Fraser, the central omission was clear: “I fear that, once again, student politics is at play, rather than any serious recognition of the Scottish economy’s strengths.”

George Allison
George Allison is the founder and editor of the UK Defence Journal. He holds a degree in Cyber Security from Glasgow Caledonian University and specialises in naval and cyber security topics. George has appeared on national radio and television to provide commentary on defence and security issues. Twitter: @geoallison

17 COMMENTS

  1. A good news article spoilt by the presentation, largely an opportunistic diatribe from Conservative and Labour politicians. Nobody sees fit to mention that previous comments about shipbuilding in Scotland being entirely dependent on the Navy and in the event of Independence would cease to exist in the event of independence. Of course with the opportunity for sales to foreign countries who have no hang up about where they procure their ships does somewhat rebut that argument. Forgotten also is that BAE as a major defence company already has factories across several countries including Scotland. Yes perhaps the SNP should have made more of the news but then the other parties should have reflected on the devolved position. The prospective demise of Scottish shipbuilding is rather premature and clearly incorrect.

  2. “ Kerr also highlighted the international interest in the Type 31 design being built at Rosyth, pointing to sales to Canada and Australia worth more than £1 billion.”

    Is that a typo or misspeak for T26?

  3. It is another example of SNP maths.

    “We were promised 13 frigates and we have been betrayed with 8 x T26 + 5 x T31. The betrayal has been compounded as 5 x T26 have been ordered for Norway

    Our betrayal has been amplified by these ships not being orders from the world class warship yard at Fergusons where we have unique skills, along with CMAL, in project management and delivery that would have made BSL proud. What other yard could deliver ships years late and four times over budget?

    When £10Bn of exports isn’t via our yard there can be no advantage to the representatives of the Scottish people….”

    • And all that is coming from the SNP who, *checks notes*, ordered their ferries from Turkey.

      But what they mean is “Westminster betrayed us by not giving us things to moan about.”

      • And complain about Alexander Dennis leaving Scotland after ordering from China. It is slightly off topic, but still on the manufacturing.

    • I’m surprised no-one called them out in the chamber for their “we do take defence seriously, we provided £90 M since 2007 to the defence industry”. Well done all, that’s £5M a year, which translates to not a whole lot…

  4. Sticking in social media nationalist throats here in Scotland that the “13 ships” promise is not only being upheld but being exceeded.

    • Terrible betrayal ordering 18 frigates and counting when they were promised 13…..

      Really says something when SNP can’t celebrate proper industrial success – which this is in spades.

      Does go to show what UK can do if a sensible order pipeline is put in place with capacity to grow. But no subsidising inefficiency here.

      Think what could done with HS2’s budget to revitalise the whole of the defence industry.

        • Railway building costs are totally out of control in the UK.

          Even upgrading an existing goods line to passenger use is eye watering expensive and takes forever.

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