Harland & Wolff takeover by Spanish state outfit 'best outcome workers could have got - and long-term closure of yard is not inevitable'
The deal for Harland & Wolff to be taken over by a Spanish state-run company is about the best outcome workers could have hoped for.
That is the view of Ulster University economist and former UUP MLA Esmond Birnie, reacting to the fact that shipbuilding outfit Navantia is to take control of the stricken Belfast company after it went into administration about three months ago.
He also said that the fact a chunk of the UK's defence capabilities has now been placed in foreign hands is not really a concern, because Spain is a NATO ally.
Dr Birnie said "it's probably as good as could be done under the circumstances", and that there is no "inevitability" to the closure of the shipyard in the long term.
Under the deal, the 650 or so jobs in Belfast are protected, plus the 350 spread across H&W's yards in Scotland and Devon.
Navantia was already under contract to build three vessels for the Royal Navy to ferry supplies to an from aircraft carriers, in a deal initially said to be worth £1.6bn.
Dr Birnie now expects some of that shipwork to come to Belfast.
"My overall reaction is obviously it's a relief they've moved out of this period of administration, and they're going to be part of this bigger group - this Spanish state-owned firm - that should in theory provide it with some stability," he said.
What of the fact these shipbuilding assets are now in non-UK ownership?
"There's always this sensitivity about what are sometimes called 'strategic industries'," he said.
"That's industries that play a key role ultimately in national defence. So it's logical to think about it.
"However, Spain is a NATO member. I think in practice that shouldn't be a major concern.
"The key thing is the dry dock - which you could say is the asset which is very important from a national shipbuilding capacity, strategic point-of-view - that is going to be kept in being, even if the ultimate ownership now rests in Spain."
Harland & Wolff has been in administration now twice in five years. Is there a risk that this takeover is simply delaying an inevitable decline?
"It's been a precarious number of decades now," said Dr Birnie.
"I don't think closure or disappearing is inevitable. But it's a challenge keeping shipbuilding going in the western world given competition from countries like South Korea and China which have much lower costs."