Type 23 Frigates

HC Deb 28 February 1996 vol 272 cc534-5W

Mr. Coe

To ask the Secretary of State for defence if he will make a statement about the type 23 frigate order. [18427]

Mr. Arbuthnot

I am pleased to announce that an order will be placed shortly with Yarrow Shipbuilders Ltd. for a further batch of three type 23 frigates to enter service with the Royal Navy around the turn of the century.

We received bids from two shipyards: Yarrow Shipbuilders Ltd. and Vosper Thornycroft (UK) Ltd. Both companies submitted high-quality tenders, reflecting their longstanding and world-renowned expertise in the construction of modern warships. The prices offered by Yarrow Shipbuilders, however, were significantly lower.

Our decision has been reached on the basis of best value for money for the taxpayer. It does not in any way reflect adversely on the capabilities of Vosper Thornycroft as a builder of warships; indeed, it remains one of the foremost warshipbuilders in the world.

At the same time, however, the order reflects great credit on Yarrows, and will be good news for jobs not only in the Clyde area but for other communities throughout the UK who will benefit from subcontracts for weapons and other systems for the ships. The total value of this work will approach £400 million.