By Douglas Hamilton, The Herald
A report from Strathclyde University's Fraser of Allander
Institute published today shows that BAE's warship division added
almost £600m to the UK economy, including £324m generated from its
yards at Govan on the Clyde.
The study highlights both the economic and social benefits of
BAE Systems Surface Ships, formerly BVT Surface Fleet.
It shows that the company's Scottish operations supported more
than 8000 jobs in total, with 3400 people employed directly in the
Clyde yards - almost 7% up on last year.
The study examines the direct and indirect economic impact of
BAE System's operations in Glasgow, Portsmouth and Bristol for the
financial year 2008/09 covering employment, wages, turnover and
contribution to gross domestic product.
BAE is one of the biggest defence companies in the world. Its
range of products includes military aircraft, missile systems,
electronics, ships and armoured vehicles. It has 105,000 employees
worldwide.
The warship division generated a total turnover of £1.12bn,
including £698m from its Scottish operations. BAE Systems Surface
Ships' yards at Govan and Scotstoun contributed £127m to GDP
directly, with an additional £198m created in the wider economy
through the knock-on effects of wage and supplier payments.
The group's warship divisions employed 3404 people directly at
Govan and Scotstoun. The report says for every 100 people the
company employed, a further 137 jobs were supported elsewhere in
the economy.
The employees at BAE Systems Surface Ships in Glasgow in 2008/09
supported an additional 2312 jobs in Scotland. The study calculates
the Glasgow warship operations supported 5717 jobs across
Scotland.
The Clyde yards generated £226m in wages. Every £100 paid
directly in wages to its employees supported £120 of wage income
elsewhere.
Alan Johnston, managing director of BAE Systems Surface Ships,
said: "The findings of the study demonstrate that our business and
the warship industry continue to thrive and the number of people in
Scotland who benefit from the Clyde yards continues to increase
year on year.
"Despite the current economic climate, we have seen significant
growth in the past year and have the strongest future order book
that this industry has seen in many years. Our long-term
partnernering agreement with the Ministry of Defence will help us
to sustain key industry capabilities in the UK and we will continue
to invest in our people and facilities to ensure that, as part of
BAE Systems, we remain at the heart of the Scottish economy."
The report reinforces the importance of BAE Systems' commitment
to working closely with its supply chain and industrial partners to
drive innovation, enhance efficiencies and develop the skills
necessary to ensure the long-term contribution of the warship
industry to the UK and Scottish economies.
The study notes that the group's surface ships business has
quadrupled its commitment to research and development to £2.5m.
It also continues to invest in skills to provide a strong base
for its future domestic and export business, with around 80 young
people joining its apprenticeship scheme in September.
Commenting on the Fraser of Allander report, Scottish Secretary
Jim Murphy said:"BAE is rightly proud of the economic contribution
it is making in Scotland. Its partnership with the UK government
makes the finest warships in the world right here in Glasgow and
supports a total of 8000 jobs in the city and beyond. The Clyde
yards have the strongest order in many years and the future looks
bright.
"Breaking up Britain would sink shipbuilding on the Clyde and
destroy 8000 jobs. These ships would be built in what remains of
the UK and not Scotland. Yet we still hear nothing from those
supporting separation on how they would replace the jobs that would
go in the Clyde yards, Faslane and elsewhere."
Reproduced with the permission of the Herald & Times
Group.