Economy Minister Conor Murphy has said he’s written to Secretary of State Hilary Benn to express support for workers at Harland & Wolff as it awaits a decision on financial support from the government.
The Belfast shipyard owner is awaiting the outcome of an application last year for a government loan guarantee which will enable it to fulfil a major Royal Navy contract.
The loan guarantee would help lower interest payments on its borrowing from New York-based Riverstone Credit Partners.
But according to the Financial Times on Tuesday, the new Labour government believes signing off on the deal would be an inappropriate use of public funds.
In a statement on Wednesday, Mr Murphy said: “I have written to the British Secretary of State, Hilary Benn, to express my support for the Harland & Wolff workforce and to seek a discussion. Invest NI is in contact with the company and monitoring developments.”
On Wednesday, Harland & Wolff also struck out at reports that it had sought 100% backing from the government through a £200m Export Development Guarantee, instead of at the usual 80%.
And it denied that it would benefit from taxpayer funds if the guarantee is given.
H&W added: “The EDG application made by the company has been for the standard 80/20 EDG product; 20% of the loan is an unguaranteed and commercial tranche and 80% of the loan is the guaranteed tranche that is funded by banks and guaranteed by UK Export Finance.
“This is a standard UKEF product and the structure and terms are consistent with other similar transactions in the market.
“The company has not asked for a 100% guaranteed product on any occasion.”
Conor Murphy
And it said there were no taxpayer monies provided to the company. “The funds received by the company will be from the commercial lender and the banks with which the company has agreed terms.
“The company continues engagement with Government on a standard EDG product that has been offered to hundreds of other entities, both in the UK and globally.
“There is no deviation or departure from what is a standard product that has been used for several years.
“The company has consistently maintained that it remains prepared to execute the transaction on a standard 80/20 EDG product basis.”
It said it was informed in December that the facility had been approved but needed a commercial rate review and final consent from the minister.
“The company has not been informed by Government that it has withdrawn its approval for the EDG facility.”
And it said that it had been given advice that the loan would not breach state aid rules.
“The company’s lender, Riverstone Credit Partners, have been fully supportive of the company and have enabled the company to win crucial contracts such as the M55 Regeneration Programme, Cory barges, FSS Programme and, most recently, the Searose project.”
It said its four yards in Belfast, Appledore, Methel and Arnish were now fully operational, with over 1,500 roles created.
A spokesman at the Department for Business and Trade in London said: “Due to commercial sensitivities, it wouldn’t be right for us to comment on the discussions or give a time frame for an announcement.”
According to a report in the Times, Chancellor Rachel Reeves has been warned against bailing-out the shipyard.
Without the loan guarantee, the company is expected to be unable to fulfil a £1.6bn Navy contract.
Trading in shares in the company on the AIM has been suspended since July 1 as auditors had refused to sign off its accounts. According to sources in The Times, the audited accounts “are now expected to be published this week”.
The company told the Belfast Telegraph: “Work with the auditors continues well but is an ongoing process. We will update the market shortly.”