Caribbean wrote:donald_of_tokyo wrote:I think 37% is not correct (simply because it is the number proposed from ship-building industry insiders). Surely, Treasury can do the calculation. It is politics, to ORDER Treasury to do it.
HMG tax take is 36.9% of GDP (please see link to a recent IFS study below), so any portion of the project that goes towards increasing UK GDP, rather than another countries, increases HMG's tax take.
Not so easy, I think. If H/W is getting too much "busy" with T31e, they will not bid for other orders (offshore something), and these orders may go abroad. If Appledore gets too busy, they will not get OPV order anymore.
Important thing is, to make these shipyards "not too busy". Also important is to keep constant orders.
If MOD is ordering 1B GBP SSS within UK and the 1.25B GBP T31e at the same time, they will get too busy with them.
Will they increase the labor/engineer force to handle this? No, they can't.
The next order is LSD-replacement, which is far away. And in more future. nothing. AOR will never come back, South Korean bid was very successful.
Hoping for T31e export? No. If I were a shareholder of these companies, if the CEO says he/she will increase labor force to prepare for future T31e export order, I will just fire him as being foolishly optimistic. (If T31e export orders were to come in, just throw away "other orders" (offshore etc) and build these ships. )
If SSS order shall go within UK, I think T31e order must be delayed. If we decide to use T23 up to 36 years-old, Argyll will remain in service till 2027 (+4 year from current plan). Then, following T23GPs in 2028, 2029, 2029, 2030. (T23ASW will be replaced by T26.) This will give us 4 years shift in T31e order, enabling SSS order within UK and still keeping the shipyards relatively empty to enjoy the other orders to come.
[EDIT] Already in the current plan, Northumberland, Richmond and Somerset are to be used up to 35 years old.