SURVIVAL PLAN: The immediate future of the ailing Belfast shipyard Harland & Wolff has been secured after the North's Executive approved its latest survival business plan last night.
Ministers also gave their backing to a land deal designed to provide the finance for the restructuring of the company. Last month, the Regional Development Minister, Mr Peter Robinson, agreed in principle to allow around 80 acres of the shipyard's land to be released for sale.
The North's Enterprise Minister, Sir Reg Empey, said the release of the land in Belfast Harbour Estate was a positive development that would offer the shipyard the opportunity to move ahead with the implementation of its business plan.
"Much work remains to be done in reaching a satisfactory conclusion on the detailed land arrangements. If the Department of Regional Development reaches agreement on these issues, there is potential for significant economic development of the vacated land," Sir Reg said.
"My department will be working closely with the Department of Regional Development and other relevant departments in monitoring the progress of these proposals."
Mr Robinson said he was satisfied that there was widespread support for the package negotiated between the shipyard and Belfast Harbour Commissioners.
"I firmly believe that the deal is a good one for Northern Ireland plc and stands on its own as beneficial irrespective of the bonus value to shipbuilding in Belfast."
Mr Robinson said the Executive's approval of the business plan showed the way forward for Harland & Wolff. However, a number of important matters remained to be resolved before he would be able to formally convey his approval for the proposed new arrangements.
"The terms of the memorandum of understanding between Belfast Harbour Commissioners and my department provide for the commissioners to seek the department's approval to all such changes in lease arrangements.
"Discussions with the principal parties to the proposed agreement are well advanced and I would hope therefore to be in a position to finalise matters early next week."
Harland & Wolff, which is owned by Norwegian-based company Olsen Energy, has been unable to secure further shipbuilding work after completing an order for a number of vessels for the British Ministry of Defence.
The management had put its survival plan before the Executive at the end of February, warning that the yard would face closure if the plan was not approved.
It is understood that the company had been preparing redundancy notices for the remaining workforce in case the recovery plan was not accepted by the Executive.
