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The British government has decided that the state will not offer
guarantee on new loans requested by the company
Harland & Wolff shipbuilding. This was announced today by the
Minister for Business and Trade, Jonathan Reynolds, in a
written answer to a parliamentary question. Specifying that
the officials of the Ministry "for several weeks have
worked for a long time to secure a result for Harland & Wolff
that safeguards shipbuilding and production throughout the
United Kingdom and that protects jobs," Reynolds said
explained that, "after the in-depth examination of a request by
Harland & Wolff for an Export Finance
Development Guarantee of the United Kingdom, Her Majesty's Government
has decided not to proceed with the granting of a guarantee.
This decision - the minister clarified - was based on
an overall assessment of the company's financial profile, and
on the criteria of our risk policy. In addition, we have decided not to
to grant any form of financing for a provision of
emergency liquidity".
"Even if this decision was not easy - he said
continued by Reynolds - on the basis of the extensive commitment by the
officials with market operators, it is my opinion
that funding from Her Majesty's Government is not
would necessarily guarantee our objectives and that
There would be a very real risk that the money of the
taxpayers are lost. In this case, the government considers that the
market is best placed to resolve issues
Harland & Wolff. In a press release
On 19 July, Harland & Wolff announced that the
company has entered into negotiations with its current creditors,
Riverstone Credit Management LLC, to ensure the additional
funding it needs. This should allow
the company to continue to pursue its objectives in the short and short term.
in the long term, in which the government continues to take an interest".
Specifying that, in all discussions with the officials of the
Riverstone Credit Management has expressed its
willingness to find solutions to achieve these
objectives, the minister recalled that Harland itself &
Wolff "said that the negotiations on new financing
should be completed in the coming days. This - he
Reynolds recalled again - will involve the immediate
dismissal of the current CEO and the installation of a
new management that pays particular attention to the
recapitalization and to ensure sustainable financing".
Responding to the concerns expressed by workers
of the shipbuilding company and the trade unions, the Minister
said its officials have contacted the organizations
trade unions represented in the company's four sites
"to reassure them that the measures
adopted by the company seem to me to offer by far the best
prospects to ensure business continuity,
safeguarding employment and completing the relevant
contracts in progress". In particular, Reynolds did
reference to the contract for the construction of new ships of the
Fleet Solid Support programme for the Royal Navy which sees Harland &
Wolff to collaborate with the prime contractor, the Spanish Navantia
(
of 22
November 2019 and 26
May 2020).
"The shipbuilding sector - concluded
Reynolds – supports 42,600 jobs nationwide,
contributes £2.4 billion annually to the economy and
represents an important pillar of our industrial base
civil and defence. We are committed to supporting industries of
Dynamic and successful shipbuilding and production and our
skilled workforce that supports them, in all parts of the
United Kingdom, in which Harland & Wolff has a role as a
carry out".
Commenting on the minister's words, the national representative
of the GMB union, Matt Roberts, pointed out that "these
construction sites must be saved and their
long-term sustainable future". The declaration is similar
by Sharon Graham, general secretary of the Unite union:
Harland & Wolff workers and the shipyards in which
work - he underlined - are of fundamental importance
Strategic. Five years after the guarantee of the survival of
Harland & Wolff in Belfast obtained by Unite associates,
Policy attention must now focus on attracting
stakeholders committed to building a long-term future
rather than on those who seek to achieve a rapid
profit".