The short-term future of Harland & Wolff appears to have been secured after talks between the Belfast shipyard and its US customer Global Marine over outstanding payments by the US company reached a successful conclusion early yesterday.
It is understood that Global has agreed to make interim payments, thought to be in the region of £50 million sterling (€78 million), to enable H&W to complete two drill ships, worth £200 million each, currently under construction in the yard and deliver them to Global on the agreed date.
The US company is also believed to have agreed to sign off an insurance bond lodged by H&W, to be forfeited in the event of the contract being breached.
Neither company yesterday was prepared to reveal any details of the agreed settlement, but a spokesman for the Belfast yard said the issue had been resolved and 3,000 jobs had been secured for now.
In a joint statement, the two companies pointed out that the agreement reached did not address the dispute over the payment for extra work amounting to £133 million allegedly ordered by Global. "This issue will be resolved by separate negotiation or ultimately, by arbitration," the statement concluded. The chief executive of H&W Holdings plc, Mr Brynjulv Mugaas, said the settlement should enable the shipyard to seek out and win new work. "To assist us in this, we would expect that the UK government urgently address the issue of providing support to shipbuilding in such a manner as to place us on an equal footing with other European countries."
The chairman of Global Marine, Mr Bob Rose, said he was confident the order would now be completed to Global's satisfaction. "With this agreement in place, we look forward to receiving two of the most sophisticated ultra-deepwater drill ships in the world. We are confident that all parties will work together and focus on achieving delivery in a timely and efficient manner."
Both companies praised the "constructive" role of the trade unions in settling the dispute. Replying to the statement, the district secretary of the Confederation of Shipbuilding and Engineering Unions, Mr Peter Williamson, said: "On behalf of the employees of H&W, we are delighted that it has been possible to come to an agreement which will ensure that H&W not only completes these highly sophisticated vessels but can also look to the future. We are fully committed to playing our role in achieving the timely completion of these contracts."
Political parties, who even enlisted the help of the peace talks chairman, Senator George Mitchell, to help broker a settlement between H&W and Global, yesterday expressed their delight at the deal.
Ulster Unionist Assembly member Sir Reg Empey said the outcome clearly demonstrated how local politicians working together could make an effective contribution to safeguarding Northern Ireland's economy.
