§ 7. Mr. Ben Chapman (Wirral, South)If he will make a statement on the role of the British shipbuilding industry as a supplier for his Department. [70497]
§ The Parliamentary Under-Secretary of State for Defence (Mr. John Spellar)British shipbuilding yards play an important role in supplying warships and major support vessels to the Royal Navy and Royal Fleet Auxiliary. The strategic defence review announced a large investment in the UK shipbuilding industry over the next 15 to 20 years through major warship programmes, including the future aircraft carrier, common new generation frigate and the future surface combatant. Those programmes will provide a secure long-term platform for the UK shipbuilding industry to continue to win work and increase its efficiency and competitiveness.
§ Mr. ChapmanIs my hon. Friend aware of the importance, both current and historical, of shipbuilding to the people of the Wirral? Will he join me in congratulating McTay Marine, a company in my constituency that recently obtained an order for three passenger transfer vessels for use in naval base areas; and will he join me in acknowledging the high quality of the vessels that the company has supplied to the MOD in the past? Does he accept that the people of the Wirral yearn for shipbuilding to be restored to the GEC Marine site at Cammell Laird? That is not in my constituency, but in the constituency of my right hon. Friend the Member for Birkenhead (Mr. Field); however, such a development would provide jobs and employment for and utilise the existing and growing skills of my constituents.
§ Mr. SpellarLike my hon. Friend, I greatly welcome the regeneration of shipbuilding in the Wirral area.
11 We are also very much aware of the vital contribution that that industry has made in the past. I am sure that my hon. Friend will be pleased to know that arrangements have been made for an MOD team to visit Cammell Laird on 19 March to brief it about the aircraft carrier programme, with a view to assisting that fine company in becoming a potential participant in such programmes.
§ Mr. Michael Colvin (Romsey)In his first reply, the Minister did not mention ro-ro transport. I thought that the Ministry of Defence had plans to lease ro-ros. In confirming what those plans are and when they will come into force, will the Minister refer also to another heavy-lift leasing arrangement for C 17 transport? Will those leases, which are for seven years, be converted into purchases at the end of the day and what will happen to the future large aircraft in the meantime?
§ Mr. SpellarThe hon. Gentleman should have probably asked the second part of his question later.
§ Madam SpeakerThank you, Minister. That question was totally out of order. I shall proceed and call a Government Member who has a question about shipbuilding.
§ Dr. Norman A. Godman (Greenock and Inverclyde)Thank you, Madam Speaker. I remind my hon. Friend—if he needs any reminder—that there are three first-class yards on the Clyde: Ferguson's, Yarrow and Kvaerner. My constituents who are employed at Kvaerner sincerely hope that the company will secure the orders for the ro-ro vessels. Given that such vessels will be used by the MOD, will the Minister confirm that he will accept tenders only from United Kingdom yards—preferably from Kvaerner?
§ Mr. SpellarWe are keenly aware of the interest expressed by Kvaerner as part of a consortium. We have told any potential private finance initiative tenderers seeking to provide vessels that they will have to demonstrate to the MOD that UK build is being considered in any alternative proposals. We hope that British yards will submit competitive bids. My hon. Friend also mentioned Yarrow, which is an extremely successful warship yard that has constructed about 70 per cent. of ships since 1990. The future of British naval shipbuilding has good prospects, and we are working with the industry on that front.
§ Mrs. Margaret Ewing (Moray)When the Minister or MOD representatives meet the all-party delegation tomorrow to discuss the Kvaerner consortium bid, are we likely to receive a clear answer? A big problem facing people in the local area is continuing uncertainty.
§ Mr. SpellarAll bids are being considered and evaluated at this stage, so it would be premature to give any indication of the outcome. As I have said, we are very pleased with the interest that Kvaerner has shown. It is a very viable bid, but it would be premature to state whether one bid or another will be successful.