§ Sir David Price
asked the Secretary of State for Defence whether there are penalty clauses in the two contracts for type 22 frigates awarded to Cammell Laird and Swan Hunter in respect of late delivery and of exceeding contract prices; and if he will make a statement.
§ Mr. Lee
Contracts for T22 frigates 13 and 14 were placed with Cammell Laird Shipbuilders and Swan Hunter Shipbuilders Ltd. respectively on 28 January 1985 at fixed prices and delivery dates. The contracts include liquidated damages clauses covering damages to be paid to MOD in respect of late delivery.