CEO warns defence firm may move after Yes vote

The chief executive of defence giant Babcock has said the company could move its huge fabrication yard facilities from Rosyth to England within a few years if made to feel unwelcome in an independent Scotland.

David Lockwood said a Yes vote in a second referendum would be “manageable” but he believes the tone of the constitutional debate in Scotland has already been putting off English investors.

Thousands of jobs have been supported in recent years at the 300-acre facility at Rosyth.

Britain’s largest warships, the Queen Elizabeth Class aircraft carriers, were built there and Babcock recently announced plans to recruit 500 more workers for its Type 31 frigate programme.

Prime Minister Boris Johnson described the

Royal Navy’s Type 31s as an “amazing demonstration of Scottish shipbuilding prowess”, as he toured the Rosyth yard on Monday alongside Mr Lockwood.

In an exclusive interview, the Tory leader added: “Just thinking about it from a union point of view, you see Scotland integral to the UK Government’s overall posture – our ability to be global and to be committed to the defence of freedom around the world.”

The prime minister also hinted Rosyth could be on track to win freeport status.

Shortly after Mr Johnson’s visit, Mr Lockwood spoke of the importance of “political stability” in a long-term business.

He said it was “really encouraging” that the Scottish and UK governments had reached a deal this week to pave the way for two green freeports in Scotland, after months of wrangling between the administrations.

Asked about a second independence poll, he said: “I lived in Scotland for 10 years and it was a rumbling thing then and I think it’s just going to be a rumbling thing.

“I think in reality there will be plenty of warning if the vote were in favour of independence.

“There would then be a negotiation period and at the end of the negotiation period there would be an implementation period.

“So I don’t think there is anything that we can’t manage as a company.”

He added: “If we had to replicate this in England because we were told we weren’t welcome here – which I think would be a bad mistake for Scotland – but if that were the decision, we can replicate this in three years, and the time window of negotiations is longer than that. It’s not ideal but it is manageable.”

Mr Lockwood, who succeeded Archie Bethel as CEO of Babcock International Group in 2020, said the battle over Scotland’s constitutional future was impacting decision-making south of the border.

“I do think there are signs it can affect, the tone of debate, inward investment from England to Scotland and other areas,” he said.

“I think if you are already here it is manageable. But I think it is a slightly different question if you weren’t here, does it affect your decision?”

An SNP spokesman said: “The people of Scotland delivered a clear democratic mandate to the Scottish Government to hold a referendum on independence within the first half of this parliament, Covid permitting, and that is what we are committed to doing.

“Scotland is already one of the most attractive places in the world to do business, and the evidence clearly shows Scotland has the talent and ambition to build a prosperous economy, drive economic recovery and raise competitiveness.”

Pamela Nash, chief executive of pro-union group Scotland in Union, said: “If Scotland chose to leave the UK, we would be choosing to no longer be eligible for contracts where national security is a factor, such as warships.

“Therefore it would be inevitable that large shipbuilding companies would have to relocate.

“Thankfully we voted to remain in the UK. Despite this, the SNP seems determined to keep this debate rumbling on.”

CONCERN: Babcock’s David Lockwood said the firm could operate in an independent Scotland, but only if it felt welcome. Picture by Kim Cessford.