HC Deb 18 February 1971 vol 811 cc545-6W
92. Dr. David Owen

asked the Minister of State for Defence if he will give an assurance that the proposed loan to Yarrow Limited will not affect his Department's existing new construction facilities for frigate building in Devonport Dockyards.

Lord Balniel

Since the Leander Class frigate, H.M.S. "Scylla", was completed in Devonport Dockyard in January, 1970, the new construction facilities there have been occupied by the building of a research and development vessel. This vessel will not be completed before the end of 1971, and in this period there are no plans for building frigates in the yard. This situation is unaffected by the loan to Yarrow Limited.

Dr. David Owen

asked the Minister of State for Defence if he will give an assurance that in future all new frigate construction will be put up for open tender, as in the past, and that the practice will continue of choosing the lowest tender from commercial firms.

Lord Balniel

There is no intention to change the method of awarding orders for the construction of frigates.

Dr. David Owen

asked the Minister of State for Defence in view of the concern about the future of commercial new construction factories for frigates, building which has prompted his Department to propose a loan to Yarrow Limited, if he will give an assurance that he will consider the possibility of extending new construction facilities within the Royal Dockyards.

Lord Balniel

There are no plans to extend new construction facilities within the Royal Dockyards.

Dr. David Owen

asked the Minister of State for Defence what representations he has received following the proposed loan to Yarrow Limited from other commercial shipyards with a frigate-building capacity such as Harland and Wolf, Swan, Hunter, Cammell Laird and Vosper Thornycroft.

Lord Balniel

None.

Dr. David Owen

asked the Minister of State for Defence whether the contracts placed with Yarrow Limited in 1968 for new frigates have been fulfilled within the quoted contract price, or what is the expected total increase in cost; and if the liability for it will be met by Yarrow Limited.

Lord Balniel

The payments made to Yarrow Limited will be those properly due to it under the terms and conditions of the contract.