Fresh concerns over future of Harland & Wolff after chief executive 'takes leave of absence'
East Belfast MP Gavin Robinson said he still sees “better days ahead” for shipbuilding in the city, after the “unsettling” news that the Harland & Wolff chief executive has taken a leave of absence from the firm.
Mr Robinson was commenting after reports that the government had refused the company a £200m loan guarantee considered vital for its financial stability.
The new Labour government believes it would be irresponsible to provide such a guarantee to the loss-making firm.
It is understood that officials have had intensive contact with Harland and Wolff and its lender in recent days.
Harland and Wolff was bought out of administration in 2019, and three years later was part of the consortium awarded a major contract to build three support ships for the Royal Navy.
Significant investment in preparation for the Ministry of Defence work is said to have contributed to the most recent financial losses.
Mr Robinson said: “There has been a period of uncertainty for workers in recent weeks. I have been engaging extensively with the government, including discussions yesterday.
"The government’s commitment to a renaissance to shipbuilding in our city remains.”
The DUP leader added: “The contract for Fleet Solid Support Ships is a significant boon for Belfast and should instil confidence that with the right management, our shipyard is an attractive proposition with better days ahead.
"Having engaged with union representatives yesterday afternoon, I will continue to champion the yard, its workforce and its future.
"With Parliament sitting next week, there will be an important opportunity for the government to reiterate its support for shipbuilding in Belfast.”
Restructuring expert Russell Downs is joining the firm as its Interim Executive Chairman.
In a statement, Harland & Wolff said Mr Downs is “ well placed to lead the Board at this time as it seeks to complete a recapitalisation intended to give the Company a sustainable financial footing into the medium and long term."
In a social media post, UUP MLA Dr Steve Aiken said: “Now is the time for @UKLabour to demonstrate its commitment to Defence. Without @HarlandWolffplc our nation doesn’t have the capacity to build the shipping the @RoyaNavy needs”.