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Page last updated at 10:08 GMT, Monday, 21 July 2008 11:08 UK

Economy at risk if navy jobs go

HMS Victorious leaving Devonport Naval Base
Devonport Naval Base won the Trident refit contract in 1993

Cutbacks at Devonport's naval base and dockyard would have a devastating effect on the local economy, a report for the BBC has said.

The facilities support nearly 24,000 jobs and are worth more than £850m to the local economy, the University of Plymouth Business School found.

Up to 10,000 jobs could go if Devonport frigates are moved to Portsmouth.

The Ministry of Defence (MoD) is reviewing the future of bases at Devonport, Portsmouth and Faslane.

In March, Armed Forces Minister Bob Ainsworth said Devonport Dockyard had to prove its long-term benefit to the navy and earlier this month the MoD announced that Portsmouth would be the main centre for the maintenance of the Royal Navy's surface ships.

People have been aware that Plymouth is dangerously dependent upon the military since at least World War II
Prof Peter Gripaios, report author

The Royal Navy has been a part of Plymouth since the dockyard was built more than 300 years ago.

The study showed 9,860 military personnel are currently serving on board Devonport ships or at bases in and around Plymouth, with a further 6,637 civilian MoD and dockyard staff and contractors and about 7,000 supported jobs outside Devonport.

The 23,530 jobs represent more than 11% of all full time posts in the Plymouth travel to work area.

In 1993 Devonport won a £5bn contract to refit the Royal Navy's trident submarines, but that work is almost complete with only two refits outstanding.

Iain Ballantyne, editor of Warships International Fleet Review Magazine, said in his view Devonport was simply "too big" now for the navy's shrinking fleet.

Prof Peter Gripaios, the author of the report, told BBC News: "People have been aware that Plymouth is dangerously dependent upon the military since at least World War II."

Centre of excellence

He said attempts to diversify the economy with inward investment had been partially successful, but it would still have a huge knock-on effect if the Royal Navy was to pull out of the city.

The MoD told BBC News Devonport was considered a world class naval base and an amphibious centre of excellence.

In a statement it said: "The MoD made it clear in the Naval Base Review, that concluded only last year, that the future of Devonport is secure.

"As part of the optimisation process, we are currently considering a range of scenarios to inform our decision making. Each of these sees Devonport as a net gainer in jobs."




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