HC Deb 14 December 1982 vol 34 c109
3. Mr. Colvin

asked the Secretary of State for Defence if competitive tendering remains the normal method for his Department for securing repair work contracts for merchant ships taken up from trade for the Falklands emergency.

Mr. Pattie

Competitive tendering has not been the method employed by the Ministry of Defence for placing repair contracts for merchant ships taken up from trade for the Falklands emergency. The need to return ships quickly to their owners in order to minimise charter fees has precluded the use of competitive tendering procedures.

Mr. Colvin

Is my hon. Friend aware that British Shipbuilders is using the profits from its Ministry of Defence contracts to subsidise its ship repairing activities and is thus unfairly undercutting free enterprise ship repairers, such as Jefferies Avonmouth Limited, in my constituency? What can my hon. Friend do to ensure that the private sector receives fairer treatment from the Ministry of Defence?

Mr. Pattie

How British Shipbuilders uses its profits from Ministry of Defence contracts or others is primarily a matter for it, or for the Department of Industry. Of the 25 contracts that have been placed for merchant ships that have returned from the Falkland Islands, eight have gone to British Shipbuilders' yards and 17 to the private sector.

Dr. David Clark

Does the Minister appreciate that there is great anger on the Tyne about the way in which the Government have placed contracts with private yards, for the repair of merchant vessels at the expense—according to the Minister's figures, in the ratio of 3:1—of the public yards?

Mr. Pattie

I assure the hon. Gentleman that contracts have been allocated according to the best available capacity and in accordance with what we felt would be the best response to our needs. The hon. Gentleman has advocated repairs being carried out in certain yards on the Tyne and I think that he would accept that we have been able to accede to his request in some cases.