§ Mr. DrewTo ask the Secretary of State for Defence what plans he has for modernising warship repair and maintenance. [46336]
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§ Mr. HoonThe Government have decided on arrangements which will secure better value for money for warship repair and maintenance for the Royal Navy.
The Ministry of Defence has considered a number of options, including internal proposals to improve efficiency, proposals for further improvements from the MOD trade unions, and proposals from the existing dockyard companies. All options offered significant benefits compared with the current cost of undertaking warship repair and maintenance, but the company proposals offered the best overall value for money.
I have therefore decided to proceed with partnering arrangements with the companies. Subject to the satisfactory conclusion of negotiations, contracts will be placed later this year with Devonport Management Ltd., Fleet Support Ltd. and Babcock Naval Services Ltd. (a newly formed subsidiary of BRDL) for the provision of engineering support and related services at the naval bases at Devonport, Portsmouth and the Clyde. The Ministry of Defence has also agreed with the dockyard companies that a larger proportion of the surface ship refit and repair programme will be opened up for competition, with corresponding improvements in value for money. Taken together, these approaches will deliver efficiency improvements of over £300 million over the next five years.
These arrangements will involve the transfer of nearly 3,000 posts to the partnering. The Ministry of Defence will work closely with trade unions to ensure this transfer can be achieved as smoothly as possible.