HC Deb 19 July 1961 vol 644 cc1212-4
3. Brigadier Clarke

asked the Civil Lord of the Admiralty how he proposes to allocate contracts for new naval construction.

Mr. C. Ian Orr-Ewing

It is no longer policy to allocate orders for new construction to commercial yards. These contracts are won primarily as a result of competitive tendering. As far as the Royal Dockyards are concerned, their main task is the modernisation, repair and maintenance of the Fleet; they are allocated sufficient new construction to provide essential knowledge and experience of shipbuilding techniques.

Brigadier Clarke

Does my hon. Friend realise that mere maintenance and reconstruction work is very dull indeed? We have very good workpeople in Portsmouth who can build ships extremely well and rather more cheaply. Will he reconsider this and let the Royal Dockyard at Portsmouth build new ships?

Mr. Orr-Ewing

We are providing a trickle of new ships to the Royal Dockyards for the purpose which I stated. I can assure my hon. and gallant Friend that the Portsmouth Dockyard looks like being very fully engaged. It has the depot ship "Maidstone" to modernise, the conversion of H.M.S. "Albion" to a commando carrier, and also the substantial refit, later this year or early next year, of H.M.S. "Hermes." There is thus no lack of work.

4. Brigadier Clarke

asked the Civil Lord of the Admiralty if he is aware that construction of naval ships in Her Majesty's Dockyards is considerably cheaper than calling for tenders; and whether he will allocate all new naval construction to Her Majesty's Dockyards.

Mr. C. Ian Orr-Ewing

It is difficult to compare prices, but on recent evidence, costs of ships built in the Royal Dockyards have been roughly equal to those built by the industry. It is as yet too early to say whether this pattern will be affected by the reintroduction of competitive tendering, but, as I explained in my reply to the last question, price is not the only consideration in allocating a small amount of building to the Royal Dockyards.

Brigadier Clarke

My hon. Friend has been kind in sending work to Portsmouth, but is he aware that the Accountant-General has stated that it is much cheaper to build ships in H.M. Dockyards? In view of the fact that there have been no strikes this century in any of the Royal Dockyards, will my hon. Friend reconsider this and let us build ships in them?

Mr. Orr-Ewing

As I have said, I am feeding a trickle to the Royal Dockyards, but I must keep a balance, because many hon. Members represent shipbuilding areas which desperately need work.

Mr. Dugdale

Is the hon. Gentleman aware that when we were in charge of the Admiralty we gave a large amount of contracts to H.M. Dockyards, and also gave them repayment work which was most satisfactory? Will he consider that?

Mr. Orr-Ewing

I would not like to quote the figures without looking them up, but my impression is that H.M. Dockyards had less new building under the previous Administration than under our Administration. Perhaps the right hon. Gentleman will put down a Question, when I can answer more fully.

Mr. Mulley

Will the hon. Gentleman give an undertaking that public enter- prise in the dockyards will not be adversely affected, in view of his hint about other shipyards? Will he say that, if the dockyards can do the work more cheaply, they will get it?

Mr. Orr-Ewing

From the evidence it is rather difficult to assess whether it is cheaper or not, but we are directing a trickle towards the Royal Dockyards. About 10 per cent. of our new building goes to them and 90 per cent. to private yards.

Mr. Hector Hughes

Has the Minister a scintilla of evidence in favour of the extravagant and false premise on which the original Question was based? Does he agree that Britain is rich in shipyards able and willing to do the work cheaply and efficiently? Will he see that such work is fairly distributed among those shipyards, particularly Aberdeen?

Mr. Orr-Ewing

I think that the hon. and learned Member's scintilla has underlined my difficulty.