§ Mr. Steenasked the Minister of Defence to what extent considerations were given as to the number of unemployed men who would be given work if the "Ark Royal" had been broken up in the docks on Merseyside and the tender accepted from Oldham Brothers, Liverpool of £½ million as opposed to accepting £34frac; million from Dr. Gandini on behalf of a foreign buyer to be broken up abroad; and if he will make a statement with regard to Government policy towards awarding Government contracts to areas of high unemployment.
§ Mr. SpeedThe answer I gave on Friday 18 July 1980—[Vol. 988, c.738]—to my hon. Friend the Member for Brigg and Scunthorpe (Mr. Brown) announced that the shipbreaking contract for "Ark Royal" had been awarded to Kitson Vickers Ltd. It would not be proper for me to disclose details of the lower bids received.
There is no question of the work being undertaken abroad. It is a con- 835W dition of this and all such contracts that the warship will be broken up in the United Kingdom. I understand that Kitson Vickers Ltd. has negotiated the use of a berth at Cairn Ryan in West Scotland for the breaking of "Ark Royal" which will provide much needed employment opportunities on the west coast of Scotland.
As a matter of principle, and one to which importance is attached, all Government contracts are awarded strictly on the merits of bids received. In so far as it is possible, consideration is given to regional needs.