Swan Hunter in price wrangle
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.THE MINISTRY of Defence was accused of pulling the plug on Swan Hunter after claims that it reneged on a crucial part of the rescue deal being put together by Soffia-CMN, writes Russell Hotten.
With less than a week to go before the deadline to save the bankrupt Tyneside shipyard, the MoD has changed the price it is prepared to pay CMN to complete the only remaining work, on HMS Richmond.
The ministry wants the proposed pounds 57.7m contract reduced by pounds 700,000. This has prompted accusations that the Government is penny-pinching while 630 jobs are in the balance.
The price was agreed on 19 July, after which CMN struck a deal with the receiver to keep the yard open while further work was sought. That arrangement needed clearance from the MoD.
An MoD spokesman said yesterday that circumstances had changed since 19 July. There was now less risk to CMN as much more work had been completed on the ship. Also, CMN was no longer willing to buy the yard outright after the Sir Bedivere contract was given to the Rosyth yard in Scotland.
CMN denied the MoD's claim that it had refused to negotiate on the price.
A spokesman for the French company said: 'We thought we had a deal. The MoD appears to be trying to make extra money out of a desperate situation.'
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments