New
Report Strengthens the Case to Save Naval Base
An
independent report, commissioned jointly by Portsmouth
City Council and the South East England Development Agency
(SEEDA), has provided compelling new evidence of the devastating
impact that closing Portsmouth naval base would have on
the South East’s economy.
The
Ministry of Defence (MOD) is reviewing the future of Britain’s three
main naval bases – Portsmouth, Devonport (Plymouth)
and Clyde/Faslane. It is considering the possible closure
or minimisation of either Portsmouth or Devonport Naval
Base or introducing ‘local initiatives’ at
all three bases to cut costs.
The
report - by the University of Portsmouth – shows that the base and associated
defence related industries and jobs are worth £680
million to the region’s economy every year. Other
key findings are:
- The
naval base, and its associated industries, supports nearly
35,000 jobs in south Hampshire, of which 13,300 are service
and 21,600 civilian jobs
- These
jobs account for 8% of all jobs in the sub-region and
for the employment of 6% of people in the area
- Importantly,
15% of residents in Gosport, 10% in Portsmouth and 8% of
people in Fareham are in jobs which are reliant upon naval
activity in and around the Portsmouth base.
Portsmouth
Naval Base is at the heart of the local defence ‘supply
chain’ with many small specialist industries working
directly or indirectly for the base or one of the three
large contracting companies based inside – VT Shipbuilding,
Fleet Support Ltd. (FSL) and BAe Systems.
Portsmouth
Naval Base is a Centre of Excellence from design concept
and shipbuilding to worldwide support, repair and disposal
of ships. It has built up training excellence around it
which it shares with related suppliers.
Additionally,
Portsmouth and south Hampshire is home to one of the UK's
leading high-tech super clusters spanning Electronics,
Aerospace & Defence,
and IT. The naval base is a key catalyst of this activity
with research and development from internationally renowned
companies providing the Royal Navy’s military advantage.
The
defence industry centred around Portsmouth’s
naval base and the wider south Hampshire economy has many
of the skilled people and facilities needed to continue
to deliver a world-class navy.
The
new report, by the University’s
Centre for Local and Regional Economic Analysis at the
Portsmouth Business School, updates a previous study of
2005 and seeks to help the MOD to understand the role of
the naval base in the local economy.
The
report says that minimisation of Portsmouth would lead
to many servicemen and women and civilians currently living
in the region relocating to the West Country. Under current
assumptions, there could be up to 21,600 direct and indirect
job losses as a result of the closure of the base, comprising
10,300 service personnel and 11,300 civilian jobs. No fewer
than 13,600 of those jobs would be specifically lost to
the local authority areas of Portsmouth, Havant, Fareham
and Gosport. There would also be a hugely negative affect
on both tourism and firms in the “defence supply chain.”
Both
Portsmouth City Council and SEEDA are very concerned about
the effects of possible closure of the naval base on surrounding
communities. Although the South East is a prosperous region
overall, this is not the case throughout south Hampshire,
and particularly in some parts of Gosport and Portsmouth,
where many areas have unemployment rates significantly
above the national or regional average and average wages
are relatively low compared to the South East as a whole.
If
Portsmouth’s capacity grows, it will continue
to develop as the Centre of Excellence for the Navy’s
surface fleet; with the Navy benefiting from more affordable
and capable ships. In addition, UK plc will continue to
gain from the technological and export spin-off opportunities
that the industries around Portsmouth create.
SEEDA’s
Chairman, James Brathwaite, CBE, said: “This report
visibly demonstrates that the benefits for accelerating
economic growth and prosperity throughout Hampshire by
retaining the base are powerfully compelling. The naval
base is a key catalyst for both promoting greater innovation
through new research and development opportunities throughout
Hampshire in the critical marine and defence sectors and,
crucially, for the strengthening of a vibrant and thriving
sub-regional supply chain of around 750 companies. Importantly,
the naval base does not conduct its operations in isolation.
It is an active and valued partner for businesses, for
the local community and economy and for the 35,000 jobs
all linked to the future of the base.”
Sarah-McCarthy-Fry,
MP for Portsmouth North, said: "I'm pleased that this
latest report shows and proves what we've already known
for years - the significance of the naval base not just
to Portsmouth but also the surrounding area.
"Considering
that the Government is investing in the Partnership for
Urban South Hampshire and that we are supposed to be a
new growth area, which is dependent on having jobs for
the economy, it would be madness to threaten jobs in the
area.
"We've increased the standard of living and
quality of jobs in the Portsmouth area. If we took these
jobs away, it would rip the heart out of the city. Portsmouth
also offers the best defence solution to the needs of the
Royal Navy."
Mike
Hancock, MP for Portsmouth South, said: "I welcome this academic and new independent
report. It is essential that people get a clear message
about what great importance the naval base plays to the
economic well-being of not just Portsmouth but the entire
south Hampshire. This report spells out, substantiates
and legitimises what we've been saying all along.
"Operationally,
Portsmouth is also the best location for the surface fleet.
It has open access all time to the ships of the Royal Navy.
Also, to have happy crews, they need to be close to their
families - and 58% of all naval accommodation is in this
area."
Gosport
MP Peter Viggers said: "This report
has provided us with independent evidence that our stance
on the future of Portsmouth Naval Base is absolutely correct.
The base plays a vital role in the economy of the local
area and in the wider south east region. In addition, large
numbers of naval personnel are based here in order to be
close to their ships.
"Closure of the base would
result in tremendous upheaval and strain for those families,
and for all those individuals and companies dependent upon
the local defence industry for economic prosperity."
Portsmouth
City Council Leader Gerald Vernon-Jackson said: "On
January 10, we urged the Prime Minister to pay heed to
all the factors and evidence that we are presenting and
announce that there is no threat to the future of Portsmouth
Naval Base so the Government can remove the worry and uncertainty
hanging over so many people.
"Now we have that evidence.
The base not only is the lynchpin in the defence of the
realm, but it also has a dynamic influence on the city
and the region's economy. Nearly 35,000 jobs and £680
million a year speaks for itself. I urge Mr Blair to make
as early an announcement as possible, but above all I urge
him to make the right announcement, for Portsmouth's sake,
the region's sake and the country's sake." |
