Mr RobertsonTo ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement about the circumstances surrounding the Overseas Development Administration involvement in the St Helena ferry construction, and in the decision to give the contract to A and P Appledore.
§ Mr. EggarThe aid programme is financing the construction of a new mixed passenger and cargo ship for the Government of St Helena. The contract was placed in December 1987 with Hall Russell Ltd of Aberdeen. This company went into receivership in November 1988, but work on the ship continued. The joint receivers sold Hall Russell's assets in February 1989. A contract to complete the ship was subsequently concluded by the Overseas Development Administration, acting on behalf of the Government of St Helena, with the yard's new owner, A and P Appledore (Aberdeen) Ltd. We are satisfied with both the contract and the good progress that is now being made. The ship is to be launched on 31 October.