HC Deb 24 July 1984 vol 64 cc814-5
13. Sir David Price

asked the Secretary of State for Defence when he now expects to be able to announce the placing of the two orders for type 22 frigates.

Mr. Lee

The tenders for these ships lapsed before the usual detailed examination of such factors as overheads and productivity had been completed. We are therefore seeking new tenders for type 22 numbers 13 and 14 and expect to receive replies in September. Once these have been clarified we hope to place orders before the end of this year.

Sir David Price

Does my hon. Friend recall promising in the House that the tenders would be awarded before last Christmas? Is he aware that he gives disappointing news, not only for my constituents at Vosper Thornycroft, but for the constituents of other hon. Members in the naval shipbuilding yards?

Mr. Lee

I recognise that the placing of the orders for the type 22s has taken longer that we anticipated. We are looking for the best value for money. We recognise the critical importance of the orders to the respective yards. That is why we take the matter so seriously.

Mr. Field

Will the Minister give due regard to the technical expertise that yards have shown in completing previous Ministry of Defence orders? Will he confirm that in that respect Cammell Laird has a record second to none?

Mr. Lee

I pay the hon. Member for Birkenhead (Mr. Field) generous tribute because I know how hard he has worked and campaigned for Cammell Laird, with some of my hon. Friends, to promote that shipyard's interests. I am happy to confirm that the Ministry of Defence has always been satisfied with the quality of work produced by Cammell Laird. However, I must say bluntly that, to put it mildly, we are not best pleased by the fact that no work has been done on the type 42 destroyer for the last four weeks and that 130 men from Cammell Laird — a minority—are blockading the yard and the rig. That will not be attractive to any prospective customer, whether it is the MOD or anyone else.

Mr. Thurnham

In view of the successful testing of the Sea Eagle system, is my hon. Friend prepared to reconsider his decision to purchase the American Harpoon?

Mr. Lee

The Sea Eagle, which we saw launched successfully on television at the weekend, was the air-launched version. That will be in service. There is no argument about that. Harpoon is the surface-to-surface weapon for the Navy. We have no intention of changing our decision on that.

Mr. Viggers

Is my hon. Friend aware of the expression that best is the enemy of the good? Is he aware that it is often necessary to put in an order early rather than to await perfection? Is he aware that his answer will therefore cause disappointment?

Mr. Lee

I appreciate that the announcement will cause a degree of disappointment. Nevertheless, competition is still wide open. On the export front we are hopeful that yards such as Vosper Thornycroft will be in a position to win some export orders.