HC Deb 23 February 1971 vol 812 cc112-3W
Mr. Judd

asked the Minister of State for Defence what consultations he has had with Vosper Thornycroft and other naval shipbuilding firms on the implications for their competitive ability of the Government's new financial relationship with Yarrow Limited; and whether he will make a statement.

Mr. Kirk

No consultations of this sort have been necessary. As my hon. Friend the Minister of State for Defence made clear on 18th February, the existence of the loan to Yarrow Limited would be one of the factors taken into account for assessing future competitive tenders for warship contracts.—[Vol. 811, c.544–5.]

Mr. Judd

asked the Minister of State for Defence whether he will make a statement on the administrative, management and employment consequences for the Royal Naval dockyards of the Government's new financial relationship with Yarrow Limited.

Mr. Kirk

The arrangements with Yarrow Limited will not affect the administrative, management and employment situation in H.M. Dockyards.

Mr. Booth

asked the Minister of State for Defence why the loan to be made to Yarrow Shipbuilders is to be made by his Department instead of from the same source as other Government loans to shipyards.

Mr. Kirk

Because of the importance of Yarrow (Shipbuilders) for the present orders and future programme of the Royal Navy.

Mr. Booth

asked the Minister of State for Defence whether regard will be had to the loan made by his Department to Yarrow Shipbuilders in comparing its tenders for naval vessels with tenders from other shipyards, and in what way.

Mr. Kirk

As my hon. Friend the Minister of State for Defence made clear on 18th February, the existence of the loan to Yarrow Limited would be one of the factors taken into account in assessing future competitive tenders for warship contracts.—[Vol. 811, c.544–5]

Mr. Booth

asked the Minister of State for Defence whether the loan to be made by his Department to Yarrow Shipbuilders is conditional on their building only, or mainly, warships, and for what period.

Mr. Kirk

The detailed terms of this loan have not yet been worked out.

Mr. Booth

asked the Minister of State for Defence whether loans on similar terms to that to be made to Yarrow Ship-builders will be offered to other shipyards engaged principally in building warships.

Mr. Kirk

We have no plans for making loans on similar terms to any other firms.

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