The future of the Harland & Wolff shipyard in Belfast - and the jobs of the 1,745 people who work there - now hang in the balance, after a £400 million contract from Cunard to build a new cruise liner went to a rival French company. The employees are already on protective notice and there is now a real danger that the company will close, or that it will only survive as a greatly slimmed-down operation. British government ministers have promised to do all in their power to save the shipyard but its owners warn that, unless new orders come quickly, it will simply run out of work.
There is little point at this stage in seeking to apportion blame for the loss of the Cunard contract. Harland & Wolff has not been in the cruise liner building business for 40 years and never seemed likely to succeed in the bid. It may be, as stated by the chief executive of Cunard, Mr Larry Pimental, that it did well even to get to the last two for the Queen Mary II contract.
Company management says that the British government should have done more to assist the bid. However it appears that the importance of winning the Cunard contract only came to light in recent weeks and that Mr Blair's government offered considerable assistance in the form of £38 million in direct financial support and a £400 million loan guarantee. It says that this is the most it could have offered under EU rules.
Harland & Wolff, of course, has received substantial government support over the years, in recognition of its importance to Belfast's economy. It has been a major employer for many years - mainly for the Protestant community. While the number working there is now well below the peak of 40,000 reached in the 1950s, a closure would still be a heavy economic blow. It is likely to be some time before the future of the company becomes clear. Its current contracts run out in June. Company management has said it will do all in its power to win new business and British government ministers have vowed to assist in this process. The shipbuilding industry is reasonably healthy internationally and, while Harland & Wolff has lost a number of important customers in recent years, it may be that it will be able to find new work, allowing at least some of the jobs to be retained.
It goes without saying that company management and politicians should spare no effort in trying to safeguard employment. But they must also recognise that there is a limit to what can be achieved through government support. If Harland & Wolff is to have a future, then it will have to be able to hold its own and win international contracts on merit.
Were the Assembly and the Executive established under the Belfast Agreement still in operation, the future of Harland & Wolff would have been top of their agenda. And, as they express concern about the future of one of the North's biggest employers, political leaders must also realise that the impasse, if not overcome, will have a price in terms of the overall pace of economic development and growth.