UK Workboat Contract Draws Scrutiny After £200m Award Abroad
A major trade union and UK lawmakers are calling for a review of the UK workboat contract after a £200 million deal for Royal Navy support vessels was awarded to a Dutch shipbuilder, raising concerns about defence procurement and domestic shipbuilding roles.
The contract covers the construction of 24 vessels including tugs, pilot boats and crane barges under the Defence Maritime Services (DMS) replacement programme. The union says UK yards were not invited to compete and that this runs counter to the government’s National Shipbuilding Strategy, which aims to support local industry.
Union Pushes for Review of Contract Structure
GMB Scotland wrote to Defence Secretary John Healey and Scotland Secretary Douglas Alexander urging a review of how the workboat contract was awarded to Damen Shipyards by prime contractor Serco. The union argues that the arrangement allowed Serco to select an overseas yard without meaningful engagement with UK industry or trade unions.
Union leaders also noted that Royal Navy bases at Clyde, Devonport and Portsmouth will rely on the new vessels, yet UK yards capable of building similar craft were apparently not approached. They said this created risks for domestic jobs, skills retention and apprenticeships, particularly at yards such as Ferguson Marine in Port Glasgow.
Political Reaction and National Shipbuilding Strategy
Scottish Labour MSP Paul Sweeney echoed the union’s concerns, saying the award ran counter to stated policy goals to maximize UK yard involvement. He pointed to the timing of the award as especially damaging for yards facing uncertain workloads.
Sweeney urged ministers to renegotiate aspects of the deal to secure UK build work or significant UK subcontracting, suggesting the model used for the Mersey Ferry programme could provide a precedent.
Contract Background
The order for 24 vessels was placed by Serco as part of its wider maritime services contract at key Royal Navy ports. Industry reporting notes that the work includes a mix of tugboats and small craft to be delivered in 2027 and 2028.
The Ministry of Defence and Serco have previously said the contract terms allow Serco to develop its own supply chain, and that ongoing monitoring addresses potential risks associated with the vessel builder.
