§ 13. Mr. Desmond Browne (Kilmarnock and Loudoun)If he will make a statement about his Department's plans to procure four roll on/roll off container ships. [109412]
§ The Secretary of State for Defence (Mr. Geoffrey Hoon)The strategic defence review confirmed the requirement for an expanded sealift capability of six roll on/roll off ships—four in addition to the two currently on charter—to transport equipment for our joint rapid reaction forces. We are seeking to provide the capability under private finance initiative arrangements, and intend to announce a single preferred bidder later this year.
§ Mr. BrowneMy right hon. Friend confirmed that the building of the roll on/roll off ships is an essential part of the full implementation of the strategic defence review. He will be aware that the River Clyde has a great history of shipbuilding, but that recently, shipbuilding on the Clyde has become vulnerable to uncompetitive pricing practices, particularly from elsewhere. Can my right hon. Friend assure the House that, in the selection of a 1233 preferred bidder for the ships, a full and open competition will take place, and that full account will be taken of the bid by the Sealion consortium, led by the Govan yard?
§ Mr. HoonI can confirm the requirement for roll on/roll off ferries. As far as the Clyde is concerned, the Government are very pleased that the ownership of the Govan shipyard has been settled. Scottish shipyards such as Govan have historically made a vital contribution to shipbuilding in this country, and I hope that they will continue to play an important role. Certainly, there will be a full and open competition. Obviously, it is vital to the interests of the British taxpayer that we secure the best value-for-money order available.
§ Mr. Crispin Blunt (Reigate)I welcome the commitment that six roll on/roll off ferries will be available as part of our strategic lift capability. However, it would be rather odd if such measures were set alongside measures to reduce Fearless to the reserve; to place a further three frigates and destroyers into the reserve; to put four Hunt class MCMVs to reserve; to put three Sandown class MCMVs to reserve; to lay up three further Royal Fleet Auxiliaries; and to bring home Dumbarton Castle from the Falkland islands. I understand, on authoritative briefing from within the Ministry of Defence, that all those measures are being considered to deal with a bloodstained long-term costings process as a result of the fact that the Ministry does not have enough money to support the defence budget in a sensible fashion.
§ Mr. HoonI am sorry that the hon. Gentleman, who has considerable knowledge of the way in which the Ministry of Defence operates, should choose to highlight the most speculative source of information with which I have so far had to deal. The hon. Gentleman knows better than that: he knows that, necessarily, a whole series of options is canvassed and that against those options, real decisions are taken. I assure him that no real decision along the lines of his speculation has been taken. I also assure him, as I assure other hon. Members, that when decisions are taken the House will be the first to hear—and rather before spurious pieces are published in whatever publication.
§ Mr. Mohammad Sarwar (Glasgow, Govan)Is my right hon. Friend aware that when the Minister of State, Scotland Office replied to me in a recent Adjournment debate, he reaffirmed that Scotland offers support for Govan's Sealion bid? Is my right hon. Friend further aware that Govan shipyard is ready to work immediately on this order?
§ Mr. HoonI am grateful for that personal commitment. I anticipate that my hon. Friend the Member for Glasgow, Govan (Mr. Sarwar) will be down there in the event of the contract being awarded to that particular shipyard. However, it is a competitive process, and it is necessary for the Government, in the interests of the taxpayers, to choose the best value-for-money offer.