The parent company of Belfast shipbuilder Harland and Wolff has announced the business is set to move into administration – despite assurances from Keir Starmer just last month that the market is best placed to decide the future of the famous yard.

The GMB union says the government cannot leave the yard to the “mercy of the market” and must ensure that no private company is allowed to “cherry pick” what’s left.

Last month, the Prime Minister told the News Letter that “the market is better placed to deal with the current situation” facing the Belfast yard – but said “work in the defence realm is very important to us”.

GMB says all four of the company’s UK shipyards are needed for “future sovereign capabilities” in renewables and shipbuilding.

The future of each yard is now uncertain – but Harland and Wolff says there is a “credible pathway” to each site remaining open. The company’s main yard is in Belfast, with two in Scotland on the Firth of Forth and the Isle of Lewis – and a fourth in Devon.

UUP MLA Andy Allen said “this provides a glimmer of hope” but added that it is “crucial that the Government does everything in its power to make this a reality”.

He said the yard “is more than just a historic landmark; it has a vital role to play in our national defence, particularly in shipbuilding and maintenance. Given its strategic importance to our defence infrastructure, the Government must act quickly and decisively to secure its future. The workforce's skills and expertise are invaluable, not just to the yard itself but to our broader economy and defence capabilities”.

A company statement released on Monday morning said: “A full review of all group holdings commenced in July and has concluded that H&W Group Holdings PLC is insolvent on a balance sheet basis as per its last audited accounts and most recent management accounts.”

placeholder image — PM Keir Starmer last month backed the business secretary's view that the market was best placed to deal with issues facing the famous Belfast shipbuilder.

Insolvency practitioners Teneo will act as administrators and shares will be delisted.

The company said between 50-60 immediate redundancies are expected but that staff employed at its four shipyards are not affected.

On his visit to Belfast last month, the News Letter asked Prime Minister Keir Starmer if the government would commit – given the situation Harland and Wolff was facing – to ensuring defence spending in Northern Ireland is similar to that in the rest of the UK.

The Prime Minister said: “We’ve obviously looked at that very carefully. The business secretary has made a decision about it. Of course we will keep that under close review. We do think the market is better placed to deal with the current situation – but we will keep it under review because the work particularly in the defence realm is very very important to us. So a decision has been taken, but we will keep it under close review”.

The GMB union says workers, their families and whole communities “now face their lives being thrown into chaos due to chronic failures in industrial strategy”.

Matt Roberts, GMB National Officer, said: “All the four Harland & Wolff yards are needed for our future sovereign capabilities in sectors like renewables and shipbuilding.

“The Government must now act to ensure no private company is allowed to cherry pick what parts are retained, in terms of which yards or contracts they wish to save.

"Leaving these vital yards - and the crucial FSS contract with all its promises for UK shipbuilding - to the mercy of the market is not good enough. The Government must provide support and oversight to get the market to the solution we need."

Harland and Wolff interim executive chairman Russell Downs said the group had faced a “very challenging time” due to historic losses and failure to secure long-term financing.

He said: “It’s important to recognise that this is very difficult news for staff and will affect many within group. We will work to support our staff through this transition.

“We also know that it will be very unwelcome news for shareholders who have shown significant commitment to the business over the last five years.

“The board, the senior managers and rest of the team are committed to deliver the best outcome for the four yards and communities they serve to ensure their continued operation into the long term under new ownership.

“Unfortunately, extremely difficult decisions have had to be taken to preserve the future of our yards.

“Despite the recent challenges, the four yards have a strong capability, under new ownership and with the continuing support of their customers, to deliver UK-based ship building and leading UK based renewables employing over 1,300 committed personnel.

“It’s critical that the business comes through its financial troubles to secure an enduring legacy worthy of its name and its past for the benefit of the UK as a whole and its communities in particular.”