Posted on: 27 July 2023
UK Government launches new Shipbuilding Credit Guarantee Scheme to help buyers purchase UK-built ships.
On Wednesday 26th July, onboard a UK built Thames Clipper, Minister of State at the Department for Business and Trade (DBT), Nusrat Ghani MP launched the UK Shipbuilding Guarantee Scheme. Details of which can be found here.
The Minister thanked Maritime London for the support given to the DBT in creation of the scheme, with Chair Harry Theochari being cited for special commendation.
Speaking at the launch, Harry Theochari said: “At this pivotal time for the Global Shipping and Maritime Industry, when finance for shipping is at a premium, it was a great pleasure for me to be present and to speak, together with our CEO, Jos Standerwick, at the launch of the Shipbuilding Credit Guarantee Scheme by the Hon Nusrat Ghani MP, Minister of State at the Department for Business and Trade. This Scheme has been many months in the making.”
“At its heart, the Scheme provides for an 80% Government guarantee of the loan that is made available by a bank and/or a financial institution to those building new vessels in UK shipyards (such as the vessels necessary to service the UK’s burgeoning offshore wind industry, ferries and other specialist vessels), retrofitting existing vessels (to reduce carbon emissions and carbon intensity) and refitting older vessels. I am confident that the Scheme will encourage increased lending and will hopefully tempt back those UK banks which no longer provide meaningful finance to our Industry, but who were only a few years ago, market leaders.
“The Scheme will make it easier for owners and operators to find finance and at hopefully more competitive lending rates as result of the Government’s guarantee.
“I have always found it incredibly sad that in a great maritime Nation such as the UK some of the most deprived areas are around our coasts where our ports and shipyards are located. My hope is that the Scheme will help to remedy this by creating important new opportunities for our shipyards which will be able to grow their businesses and benefit their local and national supply chains. Most importantly, I expect it to assist in the creation of new and well-paid jobs that will bring more prosperity to these coastal areas. This fits in tremendously well with the Government’s levelling up policies.
“Many congratulations to Minister Ghani and all her team for putting this very important Scheme in place.”
A panel discussion at the launch, moderated Maritime London Chief Executive, Jos Standerwick, concluded that the Shipbuilding Credit Guarantee was a very welcome scheme, and a good illustration of partnership between the various facets of the industry and government. It was, however, a baseline to build on as the industry seeks further incentives to de risk energy transition in shipping and improve the UK’s competitive advantage.
