HL Deb 08 May 1963 vol 249 cc702-3

2.40 p.m.

LORD TEYNHAM

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government whether they have now decided on the selection of firms to build Polaris submarines.]

THE FIRST LORD OF THE ADMIRALTY (LORD CARRINGTON)

My Lords, subject to satisfactory contract arrangements to be concluded, Messrs. Vickers Amstrongs (Barrow) will construct two Polaris submarines and provide lead yard services. The second firm, who will also construct two submarines, will be Messrs. Cammell Laird, of Birkenhead. The decision to place the contracts with these two firms was taken only after weighing all the factors most carefully.

LORD STRATHCLYDE

My Lords, may I ask my noble friend whether he is aware that the information he has just given to the House will be received with very deep concern in Scotland, and particularly in Greenock, where unemployment is running at a high level? Further, is he aware that the eminent shipbuilding firm, Scott's of Greenock, has great experience in submarine construction and a long record of harmonious collaboration with the Admiralty in this connection, and will he say why the outstanding merits of this firm have been overlooked on this occasion?

LORD CARRINGTON

My Lords, I realise there will be disappointment in Scott's because they did not succeed in getting this contract, and I gladly pay my tribute to the way they have co-operated with the Admiralty over the past years. But we went into this matter very carefully and decided that we should choose Cammell Laird's for three reasons: first, they have a rather larger yard, and we therefore thought they might be better placed to keep to the very tight timetable; secondly, they had rather better capital facilities; and, thirdly, they offered better financial terms. With regard to Scotland, my noble friend will remember that we announced some time ago that Rosyth was to be the nuclear refitting yard, which will employ 400 extra men in that yard. And last week, in answer to a Question which he asked me, I told him that the Polaris operating base would be at Faslane, which will also provide civilian empl006Fyment.

LORD REA

My Lords, could the First Lord say whether it would be practical to split some of the work in connection with the building of these submarines, so that integral parts could be built in different parts of the country where unemployment is high?

LORD CARRINGTON

My Lords, I do not think it would be practicable to split the building, but there will, of course, be a good deal of subcontracting, and some of that subcontracting will no doubt go to Scotland and the North-East.