The workforce at the troubled Belfast shipyard, Harland & Wolff, could be dramatically cut and business redirected at offshore projects and the development of a multi-million pound science quarter, according to an internal document allegedly leaked to a local newspaper. A report in yesterday's News Letter claimed H & W was preparing to make more than 1,000 workers redundant, leaving a core workforce of only 200. Harland & Wolff Heavy Industries Ltd, which has already been set up but is not yet operational, would operate in a smaller part of the shipyard. The development of the Titanic quarter, a £400 million sterling technology and tourism scheme on H & Wowned land, is also identified as an option in the document.
A spokesman for the shipyard yesterday said he had not seen the leaked document but "given the criticality of the situation, a variety of scenarios" were being considered. An arbitration hearing over £23 million, which H & W says it is owed by its US customer Global Marine for a drilling ship, which Global took out of the yard after obtaining a High Court order last month, was concluded in London last night. A ruling is not expected to be announced until the beginning of next week.
The dispute centres on the completion date for the vessel. H & W said they had repeatedly offered it to the US company from July 24th onwards but had been told it had not been completed to Global's satisfaction. Global then obtained the High Court order after putting up a £70 million bond.
The H & W spokesman said even if the company was awarded a "substantial" proportion of the disputed £23 million, major job losses would be inevitable. No decision had yet been made on the numbers, he added.
The spokesman denied that shipbuilding was "finished for good", as alleged in the newspaper article, saying just because "shipbuilding" was not mentioned in the title of the new holding company, it did not mean that it would not remain part of the company's activities. Asked about a "worst case scenario", the spokesman pointed to a statement made by H & W's parent-company, Norwegian-based Fred Olsen Energy, earlier this week warning of a "controlled closedown" of the yard should it fail in its bid to recoup the £23 million. The cost of such a closedown is expected to be in the region of £15 million. A "best case scenario" would involve a continuation of the yard's restructuring programme approved at the company's a.g.m. in May, he added. An Ulster Unionist MP, Mr Cecil Walker, who is believed to have seen the leaked document, said it looked like the "writing was now on the wall" and senior management had already "put it down on paper".
