FEATURE REPORT FEATURE REPORT

Vol. 3 No. 11 nnn 11 MAY 2005 11 MAY 2005 nnn Vol. 3 No. 11

The refit of the Type 23 part of their time. In addition, HMS Richmond, starting this spring, another 8440 work for companies or will also set new benchmarks in the establishments in the defence level of ‘partnered’ refits with both sector but located outside the Naval sets of personnel working alongside Base. This figure constitutes four each other to deliver DLO per cent of the region’s total objectives. This approach will be employment. essential to cost management and Research shows that 70% of the ensuring that the ship is delivered personnel attached to the Naval on time and to budget. Base live within a 20-mile radius of It has already been demonstrated the Base. These are primarily civilian on several occasions that the personnel, which means that their biggest benefit from this new impact on the local economy is culture is the service at the greater. waterfront where sailors now have The defence sector accounts for a swift, seamless response some £326 million of direct mechanism to their ship needs, expenditures into the local leading to far greater operational economy. This includes purchases of efficiency. This has been developed goods and services from the local further by FSL forming waterfront industrial base and other firms partnerships with key suppliers to within the regional economy ensure that expertise is on totalling some £70 million. Visitors site to respond quickly and more to the region, including tourists, effectively to maintenance/repair ships’ crew and others, also spend requirements. some £40 million a year. The Portsmouth University The third element of spending in report on the defence sector in the regional economy comprises South Hampshire is based on household spending by sector staff comprehensive research into who live and make purchases in the activities within the Naval Base and South Hampshire area. In the information from leading defence financial year 2003-04, that companies and naval establishments amounted to £216 million. in the area. This includes employee To complete the defence sector the naval presence further and Time Engineering (FTE) personnel numbers, salaries and procurement picture within the region, the SEEDA will ensure that South combined to work over the spends with suppliers. Data from research then concentrated on the The importance of the Defence Hampshire has a strong voice in Christmas and New Year holiday visiting naval ships and the indirect employment and economic these debates.” period to prepare the aircraft contribution of the Naval Base effects that result from people in carrier HMS Invincible for The report strengthens heritage area are also factored in. the defence sector who work and deployment. Sector in South Hampshire the argument for maintaining spend their money in the region. Dr Geoff Grainger, one of the Portsmouth Naval Base as the home FSL and personnel authors of the report, said it was This was configured using an of the Royal Navy’s surface fleet. now work closely together as part The importance of the defence sector The report has been welcomed by • Portsmouth Naval Base is the important to appreciate that the accepted multiplier principle taking Although Portsmouth has been of the FTE team, carrying out local and regional authorities, heart of the region’s defence maritime defence sector impacted into account the knock-on effect of in South Hampshire has been emphasised affected more than any other naval maintenance ranging from minor notably Portsmouth City Council sector with 17,000 jobs directly upon the region’s economy both the sector. base by the withdrawal of ships from day-to-day activities to joint in a new report published by the University and the South East England linked to the facility through directly and indirectly. The By putting this into the economic the Fleet, it has continued to retain deployments overseas and of Portsmouth. Development Agency (SEEDA). naval personnel, private sector University report was based on model, researchers were able to its position as a centre of excellence providing combined workforces for Cllr Mike Hancock, the City employees and contractors. primary data on direct employment compute the overall impact of the he report, commissioned by for ship support. major maintenance and refit Council’s Executive Member for and expenditure within the local sector, which shows that a total of naval support company Fleet The research concludes that many programmes. Planning, Regeneration and This is due in no small measure to economy and a specifically 38,000 jobs in South Hampshire, Support Limited (FSL), of the naval establishments and This partnership offers valuable T the benefits of the Team Portsmouth equivalent to 6% of total regional Economic Development, explained: constructed input-output model highlights the major impact on private companies are located in flexibility in manpower and skill set “The report confirms how integral partnership between FSL, the designed to provide an accurate employment, are dependent on the employment and economic activity the area because of the ships requirements. FSL personnel provide the maritime defence sector is to Royal Navy and Defence Logistics simulation of the structure and defence sector. In turn, this in the South Hampshire region and activities at Portsmouth Naval cover at times when naval personnel Portsmouth’s economy, with the Organisation (DLO) personnel. interactions of the regional constitutes more than 5% of regional created by Portsmouth Naval Base Base. are required on duties at short city’s Naval Base very much at its economy. Gross Domestic Product, while total and the associated conglomeration Against a backdrop of reviews Recent projects have firmly notice, a recent example being naval heart. It is extremely important for local expenditures, direct and of maritime defence activity. into future naval ship support, base underlined this culture. The Team deployment to the to help Direct employment statistics the city to work with our partners to indirect, emanating from the defence FSL Managing Director Ian Booth porting of vessels and cutbacks in Portsmouth approach was key in the tsunami relief work. The reveal that the Naval Base supports raise the awareness of the sector in the regional economy are in commented: “The report reinforces the Fleet, the research sets down a to the success in completing an interlink between civilian and nearly 7000 Service personnel, importance of the sector and its excess of £500 million. the strategic importance of the firm marker if comparisons are to be extensive repair and maintenance uniformed personnel was also primarily based on ships, and some long-term potential for the FSL Manager Director Ian Booth sector to the South Hampshire made between South Hampshire and period on the Type 42 valuable when the latter were 8500 civilian staff, including sub-region.” added: “This is the first time that economy and shows that the Naval other areas in the UK over the HMS York. This saw the ship required to provide emergency cover contractors, although the latter the real economic value of Base is at the sector’s hub. FSL and Findings in the report include: potential effects of making handed back with only a small during the most recent firemen’s do not work within the Base every Portsmouth Naval Base and the our industry partners at the Base are • Some 38,000 jobs in the region reductions. slippage to the original schedule, strikes. day. The report also takes into related defence sector in the region totally committed to consolidating rely on the defence sector and James Brathwaite CBE, Chairman despite the package of work The principle of working account the heritage area within has been measured. The research Portsmouth’s position as the leading the revenue generated as a of SEEDA, said: “This report growing by some 90% from the together now permeates throughout Portsmouth Naval Base and former will be particularly valuable in warship support and build facility in result. emphasises the importance of the original programme when further Portsmouth Naval Base, including Ministry of Defence agencies, pointing the way ahead for the Base the UK. This would further • The defence sector in the area is defence sector to the region in terms maintenance and rectification work commercial projects such as the which adds another 2500 to the in the future.” FLEET SUPPORT strengthen the defence sector in the responsible for pumping over of employment and economic became necessary as the ship was regeneration of two ex-RN Type 22 totals. surveyed. LIMITED region and generate significant £500 million into the South benefit. It is essential that decision for Romania where the This produces a total of some To view an extract from this benefits throughout the South East Hampshire economy (20-mile makers understand the serious The principle of teamwork was experience of RN personnel was 18,000 employed people who work report, see page 33. economy.” radius of Portsmouth Naval Base). impact on the region if they reduce evident again when FSL and Fleet particularly valuable. within the Naval Base for at least

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