17. Miss WARDasked the First Lord of the Admiralty where the contracts for the two new battleships are being placed; and whether he will make a statement giving further information on these items of new construction?
§ Sir S. HOAREIt has been decided to give the orders for the two battleships of the 1936 programme to Vickers-Armstrong at Walker-on-Tyne and Cammell Laird at Birkenhead. The arrangements for laying down these ships are being made in full accordance with the declared policy of His Majesty's Government to press on with the naval replacement and new construction programme with all possible speed. It is the intention that the keels shall be laid at the earliest moment permitted by the Washington Naval Treaty, namely, in January, 1937. In order to achieve this object it is essential to order the vessels now and, although complete specifications will not be ready until October, there is sufficient information available to enable the contractors to prepare for laying the keels in January next.
This procedure involves some deviation from the normal process of calling for tenders after specifications have been prepared, but the public interest will be fully safeguarded by the conditions laid down. The contracts are to be accepted now subject to the settlement of price at a later date. That this price will be a fair one is ensured by the fact that tenders will by then have been received for the capital ships of the 1937 programme. There are two further financial 1507 safeguards of importance. First, the firms are to allow the Admiralty complete facilities for the examination of their estimates of cost when full specifications have been supplied. Second, in case of disagreement on prices, they undertake to accept the decision of the First Lord of the Admiralty.
It must be remembered that owing to the lack of capital ship construction in the last 10 years, the number of firms to whom this work can be entrusted at the present time is small, and to the capacity of these firms must be applied such factors as the time involved in adapting shipyards, the greatest available experience in battleship construction and, finally, the allocation of major shipbuilding, other than warship building, orders. With regard to the inquiry made by my right hon. Friend the Minister for the Co-ordination of Defence, into the vulnerability of capital ships, I have received an advance copy of the draft report, from which it appears that the designs of the battleships will not be affected by the recommendations.
Miss WARDWhile thanking the right hon. Gentleman for his reply, may I ask, arising out of his statement, whether the engines for these ships are to be built on these rivers respectively?
§ Sir S. HOAREThe contracts for these two vessels have been allocated as a whole to the firms in question, and, in accordance with normal practice, it will be for the firms to indicate at which of their establishments they propose to construct the engines. My hon. Friend may take comfort from the probability that two new sets of engines for the modernisation of two of the existing capital ships will be placed with firms on the Tyne.
§ Mr. N. MACLEANAre we to understand that orders are being issued for these capital ships without tenders having first been submitted and considered, and that the actual specifications of these ships have not been considered by the firms invited to send in tenders? Is not that a new policy?
§ Sir S. HOAREThere is no new policy. We take into account the claims of the various firms, and we by no means ignore the claims of various districts. When the hon. Member reads the answer 1508 I have given, he will see that I have dealt fully with the question of the tenders and the safeguards we are adopting to ensure a fair price.
§ Mr. BEVANDo I understand that the prices to be paid for these ships will depend on the tenders which are put in for the other ships to be built later?
§ Sir S. HOAREYes; the prices will not be fixed until we have received tenders for subsequent ships.
§ Mr. BEVANIn view of the limited number of firms that are able to build these ships, is not this an open invitation to raise the level of tenders all round?
§ Sir S. HOARENo. The hon. Member will see, from the answer I have given, that I mentioned other safeguards in addition to this waiting for prices for the next programme, and particularly the safeguard that, in the event of a dispute, the final decision is with the First Lord of the Admiralty.
§ Mr. SPEAKERWe have a large number of questions on the Order Paper.