PORTSMOUTH ROYAL DOCKYARD HISTORICAL TRUST

History 1984 - Date

When the Falklands crisis was over, MOD had a serious rethink about the John Nott strategy. Among very many lessons, it was decided that the civilian workforce at Portsmouth needed to be a bit larger than previously thought. The enormous potential was also seen for closer integration of uniformed and civilian labour and some groundbreaking agreements were negotiated with Trade Unions concerning flexibility and working practices. When the FMRO was formally established in October 1984, civilian numbers were pegged at 2800 rather than the 1800 previously set.

However the settlement for the Dockyards was to be short-lived! Thatcherism had now arrived and for the MOD was personified in the form of Mr Peter Levene. Not for him the sort of prolonged inquiries which had served previously to avoid dramatic change in the dockyards. In a few short pages, he recommended the introduction of commercial management by a company appointed for a 7-year term contract. But when this arrangement was implemented at Devonport and Rosyth in 1987, Portsmouth was left out! There were several reasons, one of which was that the Navy Board wished to preserve a banker on which it could rely if things went awry elsewhere!

Thus for about another 10 years, Portsmouth continued to retain the one remaining government operated repair yard for surface warships. The FMRO enjoyed some remarkable successes – for example its performance in completing Type 42 class destroyer refits within the time agreed at the start, the actual times taken, and the standards achieved, made the performance of the two contractorised yards look almost shambolic.

But Thatcherism was not to be thwarted! Continuation of an executive operation such as a dockyard within the government sector was anathema. And a new managerial device was conceived to ease it out. A policy of “Market–Testing” (the central government equivalent of local government “Compulsory Competitive Tendering”) was implemented, and to do so it was necessary to reverse the previous and successful policy of integrating naval and civilian workforces in the yard. Much work was needed to construct a tender package that would be attractive to serious bidders. The total naval programme had reduced so much that decline in work at the other two yards threatened the viability of their operating companies which were intended at the same time for full privatisation! There were endless delays and just as a contract was set to be awarded to the winning consortium, Prime Minister John Major called a general election.

The Future

But in April 1998, contractorisation was at last implemented at Portsmouth. The successful bidder (Fleet Support Limited or FSL) is a consortium is between GEC (now Marconi) and Vosper Thornycroft. Some of the continuing refit programmes which were presently allocated to Devonport and Rosyth Dockyards may now be open to full competitive tender and FSL could be in a strong position to compete at least for Portsmouth-based ships which the yard would regard as its own. Company policy is also to attract more commercial work.

However changes continue in political stance, commercial pressures and technology. Perhaps the most significant recent development has been the decision by Vosper Thornycroft (VT) to transfer its shipbuilding facilities from Southampton into the Dockyard where No 13 has been converted into a covered building facility. The years of isolationism of the Dockyard described earlier may have at last been ended. 2400 years is a long time – who can tell what the next millennium will bring – but the fundamental geographical features of Portsmouth Harbour and the “can-do” attitude of Portsmouthians will surely remain to ensure the future of “The Yard”.