HC Deb 11 March 1986 vol 93 cc403-4W
Mr. Dykes

asked the Secretary of State for Trade and Industry if, further to his statement in the House on 7 March, he will state what was the further term in the other bid for Vickers Shipbuilding and Engineering Ltd. which he found very difficult to accept.

Mr. Channon

The term, which I can now reveal, required British Shipbuilders to repay with interest virtually the whole of the sum offered for VSELin the event that neither of the following events has occurred:

  1. (a) a binding agreement for the Trident vessel being in place by 25 February 1987
  2. (b) the agreed formal contract documents for the Trident vessel having been issued by MOD by 25 February 1988".
Although the bidder made clear that it would procure that VSEL would negotiate in good faith with the MOD and would use its best endeavours to conclude a contract with MOD as quickly as possible", and also undertook that if it was successful it would procure that VSEL negotiates with the MOD a contract for the SSBN05 on the basis of terms and conditions, price and programme no less favourable than the conditions of which we have been made aware as modified by any undertaking given to you by the VSEL Management Consortium by 5.30 pm on 5 March 1986", I repeat that I found this clawback term very difficult to accept.