'Thousands' of jobs in NI are coming from defence contracts, says minister

A government minister has defended a cut in Northern Ireland's infrastructure budget to put more money into defence.

A spending reallocation in last week's Westminster budget means the executive will get £117m less than previously planned over the next four years.

Sarah Owen, the Northern Ireland Office minister, said "thousands" of jobs in NI are coming from defence contracts.

She was speaking at the opening of a new facility at the Harland and Wolff shipyard in Belfast.

The new manufacturing facility in Belfast will be used to help build three Royal Navy support ships, the yard's biggest contract in a generation.

The Belfast shipyard's giant yellow cranes - nicknamed Samson and Goliath - are also being refurbished as part of a major investment programme.

Navantia UK, which completed its takeover of Harland and Wolff last year, is funding the work as part of a £157m investment in four shipyards across the UK.

In last week's budget the Chancellor confirmed a "reprofiling," which involves shifting some infrastructure, or capital, spending into defence from other departments.

That has a negative impact on Northern Ireland's budget because of the way the devolution funding formula works.

Northern Ireland gets a population-based share of additional spending allocated to public services in England, so long as those services are devolved.

Defence is not devolved so moving money into it from other areas means the devolved administrations lose out.

Stormont Finance Minister, John O'Dowd, said the loss of almost £120m was "a major blow at a time when additional investment in areas such as critical infrastructure and social housing is urgently needed".

Owen said: "When we look at the thousands of jobs in Northern Ireland coming from defence contracts we can say we are investing in Northern Ireland.

"People across Northern Ireland will be benefiting from that money."

The most recent figures from the Ministry of Defence (MoD), covering 2024/25, show relatively low spending in Northern Ireland.

In the UK as whole the MoD spent £460 per person on procurement.

In Northern Ireland it was £140 per person which was the second lowest of any UK region, behind the North East of England.

Speaking ahead of the opening ceremony, Navantia UK's chief executive Donato Martinez declared: "Shipbuilding is returning to Belfast.

"We are turning Harland & Wolff into one of the most advanced shipyards in Europe.

"Our new fabrication hall will be equipped to build state-of-the-art ships to serve and defend the UK for generations to come."

The Royal Fleet Auxiliary shipbuilding contract will support 900 jobs and apprenticeships in Belfast, according to the Press Association (PA).

It added the refurbished, extended hall - which will be known as Resurgent - will add 5,000 sq m of manufacturing space to the Belfast shipyard.

Harland & Wolff was founded in 1861 and was once one of Northern Ireland's biggest companies, employing 35,000 people at its peak during World War Two.

It has suffered mixed fortunes in recent years, having been placed in administration a number of times despite major government investment.

In 2025, Harland & Wolff was acquired by Navantia UK, a British firm linked to Spain's state-owned shipbuilder, Navantia.

The takeover deal covered four UK shipyards - Harland and Wolff yards in Belfast, Appledore in Devon, Methil in eastern Scotland and Arnish on the Isle of Lewis.

The Belfast fabrication hall has been described as the centrepiece of Navantia UK's £157m investment in the four sites.

"We've named it Resurgent for a reason," Martinez said.

"Jobs, investment and activity are resurgent in shipbuilding.

"Belfast is at the heart of that revival, and the fleet solid support programme is the first of many projects we aim to deliver here for the Ministry of Defence."

The official opening was hailed by the UK's Minister for Defence Readiness and Industry, Luke Pollard.

"Few sights in the UK are more evocative of our industrial heritage than the Samson and Goliath cranes, and it's fitting that this new hall sits on the shoulders of these iconic giants," he said.

"Belfast continues with its proud shipbuilding history by building the modern shipbuilding capability the country needs today, with this new fabrication hall at the heart of it."

The minister added Navantia's plan "shows what sustained investment in shipbuilding delivers - good jobs, growing skills, and the support ships our Navy needs".

Northern Ireland Minster Sarah Owen said: "This impressive facility is a key milestone in the UK government's fleet solid support programme, which has invested around £100m in Belfast alone.

"Navantia is building on Belfast's historic shipbuilding legacy while supporting hundreds of skilled jobs and apprenticeships, ensuring that it remains at the heart of the UK's defence industry while boosting economic growth."