§ Mr. Ben ChapmanTo ask the Secretary of State for Defence if he will quantify the amount of work potentially available to yards other than those of BAE Systems and Vosper Thornycroft under the modular procurement system to be used for the purchase of Type 45 destroyers. [130632]
§ Mr. HoonThis is a matter for the chief executive of the Defence Procurement Agency. I have asked the chief executive to write to my hon. Friend.
251WLetter from G. Beaven to Mr. Ben Chapman, dated 20 July 2000:
I am writing in response to your question to the Secretary of State for Defence with regard to the amount of Type 45 work potentially available to yards other than those of BAE SYSTEMS and Vosper Thornycroft. This falls within my area of responsibility as Chief of Defence Procurement and Chief Executive of the Defence Procurement Agency.Subject to the completion of satisfactory negotiations, the order for the first three Type 45 destroyers is planned for placement later this year with BAE SYSTEMS, the Prime Contractor for the Programme. The first and third ship are planned to be assembled by BAE SYSTEMS Marine and the second by Vosper Thornycroft.The intended construction method distinguishes between `assembly' and the 'manufacture' of modules which can be constructed at a number of different locations and brought together at a shipyard for final assembly. We intend that BAE SYSTEMS Marine and Vosper Thornycroft will, between them, undertake as a minimum about 50 per cent. of the manufacture of the first three ships with the remainder being competed widely within UK industry. This provides the opportunity for shipyards around the UK such as Cammell Laird to bid for work in this programme. If they wish to do so, it is important that they contact the Prime Contractor and register their interest.I expect an order to be placed around 2004 for the second batch of three Type 45 ships and we anticipate that the competition for sub-contracts to manufacture the modules for these vessels will rise to 100 per cent.