§ "With permission, Mr. Speaker, I would like to make a Statement about the Royal dockyards.
§ "As the House will recall, I announced on 4th December that I was satisfied that there now existed 1254 the basis for an advantageous contract to be placed for the future operation of Rosyth Dockyard with Babcock Thorn Ltd.
§ "I made that announcement some 21 months after my right honourable friend the former Secretary of State for Defence first published his consultative document outlining plans for the future operation of the dockyards. Throughout that time we have provided this House and the trade unions representing the dockyard workforce with a great deal of information on our proposals, including material on the options for the future management of the dockyards and on our preferred contractors. My noble and honourable friends and I have been personally involved in discussions with the unions most concerned.
§ "The trade unions continue to favour the option involving minimum change, with the dockyards remaining in the Civil Service under a system of trading funds. I have considered very carefully what the unions have said and I have explained to them why in the Government's view a dockyard trading fund is unlikely to secure either the improvements in efficiency we seek for the Royal Navy and the dockyards or to compete as successfully as a commercial company for commercial and naval work.
§ "I am of course fully aware of my obligations under the Dockyard Services Act 1986 to inform and consult the trade unions. I have always said that I would take final decisions only when I was satisfied that I had complied with such duties as the Act imposed on me. I am satisfied that I can take a final decision in respect of Rosyth Dockyard and have today authorised the signature of a term contract for future operation of that dockyard from 6th April 1987 with Babcock Thorn Ltd. I have in addition authorised the signature of a service contract with Babcock Thorn Ltd. to cover its operations in the dockyard from now until vesting day; during this period, the management of the dockyard will remain the responsibility of the Ministry of Defence.
§ "As the House knows, announced on 20th January that Devonport Management Ltd. was our preferred contractor for Devonport Dockyard. I have invited the trade unions to meet me on 13th February so that I may hear their views on this. Only when I have carefully considered any such views will I take a final decision on the future operation of Devonport Dockyard."