Harland & Wolff ships deal at risk

STRUGGLING Belfast shipyard Harland & Wolff has warned the Government that it may not be able to stay in business long enough to complete two ships for the Ministry of Defence.

It has put forward a business plan that involves selling most of its waterfront land to property developers on long leases. But it can only go ahead if it wins planning permission for the land to be used for commercial or residential-development instead of shipbuilding.

Senior executives at the yard told Financial Mail that Harland, part of Norway's Fred Olsen group, must raise £20m to survive.

They warn that without a planning decision by Easter, Harland boss Brynjulv Mugaas must start mothballing the yard's shipbuilding facilities - a costly exercise that could mean it will run out of cash before it can complete two roll-on roll-off ferries being built for the MoD.

Harland has launched legal action against Barclays and Lloyds TSB to recover nearly £200m that it says it is owed from an illfated oil drilling ship deal.

But even if it wins the case, the money will come too late to save the shipyard and the jobs of its 500 full-time employees.