§ Sir David Priceasked the Secretary of State for Defence whether there are penalty clauses in the two contracts for type 22 frigates awarded to Cammell Laird and Swan Hunter in respect of late delivery and of exceeding contract prices; and if he will make a statement.
§ Mr. LeeContracts for T22 frigates 13 and 14 were placed with Cammell Laird Shipbuilders and Swan Hunter Shipbuilders Ltd. respectively on 28 January 1985 at fixed prices and delivery dates. The contracts include liquidated damages clauses covering damages to be paid to MOD in respect of late delivery.
§ Mr. Chopeasked the Secretary of State for Defence whether his Department obtained a no-strike guarantee from the Cammell Laird yard of British Shipbuilders before taking its decision to place an order for a type 22 frigate with that yard.
§ Mr. LeeNo. As my right hon. Friend the Secretary of State for Defence has made clear, the deplorable and unnecessary industrial action which occurred last summer at Cammell Laird would, had it continued, have excluded the yard from further consideration in the competition.