HC Deb 18 March 2002 vol 382 cc17-8
14. Mr. Neil Turner (Wigan)

What the spending implications are of the revised procurement strategy for type 45 destroyers; and if he will make a statement. [40910]

The Parliamentary Under-Secretary of State for Defence (Dr. Lewis Moonie)

The revised procurement strategy announced by my right hon. Friend the Secretary of State in July 2001 on the type 45 provides better value for money to the taxpayer, secures welcome stability for our warship-building industry and preserves the possibility of future competition for a number of naval programmes. The £2 billion order for the first six ships was confirmed on 18 February 2002. Once completed and fully equipped with their principal anti-air missile system, the overall procurement cost for the six ships will be £4.3 billion.

Mr. Turner

I thank my hon. Friend for that answer. Can the good news that he has announced on savings be applied to future contracts to ensure that we get increased capability and best value for the taxpayer?

Dr. Moonie

My hon. Friend makes a good point. Value for money remains the cornerstone of our procurement policy, with competition a key means to achieve that. The revised type 45 strategy shows that, through smart acquisition, the Government, working with industry, can deliver key national defence industrial capability and ensure best value for money. In the type 45 decision, as in other contracts, the implications for the UK defence industrial base are always considered before any procurement decision is reached.

Miss Anne McIntosh (Vale of York)

May I remind the House that I served with the armed forces parliamentary scheme on HMS Cumberland, where we saw at first hand the work that the fleet is doing? In answer to a previous question, the Minister referred to Sea Harriers remaining in harness until the new aircraft come into operation. When will the type 45s be available for operations, and what is the deadline for the Sea Harriers to come out of action and the new aircraft to go into service?

Dr. Moonie

The pilots will continue in service; the Sea Harriers will be withdrawn. That is what I said.

The armed forces have carefully considered the implications for the next few years, and the type 45s will come into full service in 2007, with their armaments. Given that our procurement strategy is very successful, that date will be met. Until then, there is a perfectly adequate screen of protection available for our carriers and any forces that we send abroad. We have been guaranteed of that, and it was very relevant to the decision on the Sea Harriers.

John Robertson (Glasgow, Anniesland)

My hon. Friend is aware that the type 45 contracts were signed in my constituency; may I thank him on behalf of the constituents and those who work in all the yards affected by the decision? Has the strategic review considered any future ships so that we can meet the needs of the coming century? The yards of Scotstoun and Govan will be only too happy to build any more ships that he wishes to announce.

Dr. Moonie

I am sure they are, and I await their bids with interest. In addition to the type 45, there will be work on future carriers to be considered. That will provide opportunities for shipyards and other companies to compete for further much-needed business.

Patrick Mercer (Newark)

During a visit last week to the dockyards in Scotland with the Select Committee on Defence, we found HMS Monmouth lying untended in dry dock, where she had been since January. No work had been carried out on her, her crew is lying idle, and the workers who would normally work on her are unable to do so. Would the Minister care to comment on that?

Dr. Moonie

Being completely unaware of the situation, the comment that I shall make is that I shall write to the hon. Gentleman about it.