Government to explain Harland and Wolff funding decision
The government is set to give an explanation for why it has refused financial support to Harland and Wolff, the shipbuilder best known for the Titanic. The loss-making shipbuilder currently employs 1,500 people throughout the UK and has applied for a loan guarantee of up to £200 million.
On Friday, 19th July, it reported that this bid was unsuccessful and that the firm’s chief executive has left his job. It is currently in talks with its lender Riverstone in the hopes of agreeing additional funding over the coming days. But that still raises some questions regarding its long-term future.
Shares are currently suspended after the company failed to file audited accounts on time. Rothchilds bank has been appointed by Harland and Wolff to review strategic options. This could include a sale of the business.
Business Secretary, Jonathan Reynolds, is due to give a written statement to Parliament.
The GMB union represents many of Belfast’s shipyard workers. Staff were concerned about the situation but are hopeful that a resolution could be reached.
“There is genuine fear, but certainly on the ground it is business as usual and our members are turning up for work today to carry out their roles,” said GMB senior organiser Alan Perry. “Yes it’s a wee bit rocky at this moment in time, but certainly the feedback that we’re getting is that there will be some sort of package and they will be able to deliver on the contracts in relation to the Royal Navy ships,” he told Radio Ulster.
Mr Perry said that the union will meet with management, adding that here are no indicators from the firms that they should be worried about the shipyard.
“Hence why we are quite positive that the future for many years to come will be secure,” he said.
