Support for 400 workers at troubled Harland & Wolff Methil yard

Harland and Wolff, which runs the fabrication yard in Methil, is facing financial difficulties after failing to secure a £200 million loan guarantee from the UK government which was followed by the immediate resignation of its chief executive. The local authority said it was “committed to doing what it can” to support the business and retain the Methil yard after a debate at this week’s cabinet committee.

The SNP group presented a motion which asked Councillor David Ross, leader of the administration, to write to the Prime Minister urging the Labour Government to review its decision to refuse funding and consider providing a further loan guarantee to ensure existing jobs and contracts are secure and confidence is shown in the long term future of the company and Fife.

That was subsequently withdrawn, but Cllr Ross emphasised that there is broad support within the council for the company

“I think we all know it’s a fluid situation,” he said. “I have written to the UK and Scottish Governments raising our concerns about this and hoping there will be support for the yard.

“We recognise that it's a significant strategic facility and provides a lot of local employment and skilled labour there. I think we can all agree that the council is committed to doing whatever it can to support the yard.”

The motion was originally brought to the committee after the shipbuilders failed to get the £200 million loan guarantee from the UK government. Days later, the company lost out on a £120 million project with the Falkland Islands government - despite being named the successful firm in a competitive bidding process.

The SNP's current and next leaders, Councillors David Alexander and Craig Walker, said: "Levenmouth, Fife, Scotland and the United Kingdom all have a vested interest in the survival of Harland and Wolff with almost 1500 manufacturing jobs at risk UK-wide and the loss of a potential 400 in Methil.”

Despite the recent turmoil, they believe that the company can still survive and retain jobs for the people of Fife with assistance from Westminster.

“Harland and Wolff appear to have a healthy order book and are ideally placed to gain more orders in several sectors. However, they need additional financial support in the short term to ensure stability,” the motion added. “The initial refusal from the new Labour Government to deny funding is a concern and appears contrary to demands from trades unions.”