Letter: The survival of Harland & Wolff is about much more than finance

It is analogous to administering palliative care to the terminally ill. However, even this futile tactic is now in doubt given the current level of government debt and the consequent need for fiscal consolidation.

The once mighty Harland & Wolff shipyard is a case in point. It recently collapsed into administration for the second time in five years due to the refusal of the government to guarantee a vital £200m loan.

This decision is puzzling given that H&W have an ongoing contract to build supply ships for the Royal Navy.

The above failure to rescue a project with obvious national security consequences defies logic.

It is quite normal in shipbuilding to seek loan capital to maintain liquidity during the “scaling up” construction phase of a ship. Yet the position of H&W remains precarious despite the fact that it is potentially profitable.

It is unfortunately further complicated by the disclosure of alleged misapplication of funds by the previous management of the company. This discrepancy must be resolved quickly.

The closure of H&W would indeed be a serious body blow to Belfast. It would lose the kernel of shipbuilding expertise represented by its small but skilled labour force.

Furthermore, the contract to build the Royal Naval ships would probably end up in Spain. The Labour Party’s continued refusal to provide the requisite loan security represents a myopic and masochistic austerity.

If, however, it does choose to rescue the beleaguered shipyard it will have facilitated a much needed investment into the NI economy via the Royal Naval deal. Perhaps it would act as a catalyst for other enterprises within east Belfast.

But the survival of H&W is about much more than finance. Its imposing iconography has been part of the Belfast skyline for over fifty years in the form of its two giant cranes. It is a part of the fabric of the city - a way of life.

Fortunately the Spanish state-owned shipbuilding firm Navantia has completed a dramatic, last gasp rescue of Harland & Wolff in a deal securing 1,000 jobs.

It incorporates the purchase of all four Harland & Wolff shipyards, including its Belfast facility. Navantia said the deal would “enhance UK shipbuilding, defence and offshore wind industry capabilities".

Phew.

The Titanic sank due to human folly. Hopefully H&W will not face a similar fate and the above acquisition proves to be successful.

George Workman, Donabate, Dublin