Titanic shipyard faces closure after 160 years
The historic Belfast shipyard where the Titanic was built is facing closure after 160 years as Jeremy Hunt is ‘set to block a £200million aid package for Harland & Wolff’.
Government insiders have reportedly voiced ‘serious fears’ that the firm based on the docks in north Belfast could collapse as a result of the funding cut, which would end centuries of shipbuilding in the city.
Harland & Wolff currently builds Royal Navy ships as part of a £1.6bn contract but it is believed the vessels could be constructed in the Spanish port of Cadiz if the businesses shuts down.
It would be the first time in British naval history that a warship was built by a foreign yard.
The historic ship building firm, which has had financial issues for decades and has a market value of £20million, was given the green light for a £200million support package at Christmas.
Picture shows the Titanic being launched from a shipyard in Belfast in May 1911
The construction of the world’s biggest sea vessel in 1911 was a huge achievement for Harland and Wolff. Picture shows the Titanic sliding down the slipway of the Belfast docks
The historic shipyard, which has built 174 vessels for the Royal Navy between 1868 and 1969, is facing closure amid a government ‘row’
However, a defence source said Hunt had told officials to reject the application for the loan, which was conditional on the company passing state-aid checks, The Times reported.
A government spokesman and Harland & Wolff both disputed the reports and said discussions on the export development guarantee were ongoing.
In recent days, Hunt and Defence Secretary Grant Shapps and been in discussions about the company’s future with reports of a ‘row’ breaking out between government departments.
Harland & Wolff is contracted to build three Royal Fleet Auxiliary support ships – which are crucial for delivering munitions – with spanish shipbuilder Navantia, which has a yard in Cadiz.
Picture shows Chancellor Jeremy Hunt leaving Downing Street in March earlier this year
Defence Secretary Grant Shapps is pictured arriving into Downing Street today amid a ‘row’ over funding for Harland and Wolff
If the Belfast firm collapses, it is believed the ships will be built in Spain.
Former defence secretary Ben Wallace, who handed the contract to build the three ships to Harland & Wolff, said the Treasury had been ‘hostile’ to the national shipbuilding strategy.
‘If we are to retain and develop a historic UK yard with lots of potential then I ask the chancellor to ensure the export credit goes ahead,’ Wallace said.
A government spokesman told The Times: ‘We on the export development guarantee. Due to commercial sensitivities, it would not be appropriate to comment further until the outcome of the process is confirmed.’
