§ Dr. HampsonTo ask the Secretary of State for Defence what information he has regarding the relationship of the French company, Constructions992W Mechaniques de Normandie bidding for Swan Hunter, and the Triacorp International Company and the financial property of the latter's owners and action taken in respect of them by the Bank of France; and if he will make a statement.
§ Mr. AitkenAs a company new to United Kingdom defence contracting, the owners of CMN have been asked to provide my Department with details of the proposed company structure, lines of finance, company background and other information on their financial and other status in respect of their prospective bid for Swan Hunter Shipbuilders Ltd., in administrative receivership. I await their response.
§ Mr. ColvinTo ask the Secretary of State for Defence (1) if he will publish in theOfficial Report the terms of the assurances his Department has been asked to give in the context of Constructions Mecaniques de Normandie's prospective bid for Swan Hunter.
(2) if he will publish in the Official Report the terms of all the assurances his Department has given in the context of Constructions Mecaniques de Normandie's prospective bid for Swan Hunter.
§ Mr. AitkenIn respect of the owners of CMN's constructive bid for Swan Hunter Shipbuilders Ltd., in administrative receivership, I have been asked for assurances and have given the following response
We have no objection, in principle, to foreign ownership of Swan Hunter and that, in the event that CMN should purchase Swan Hunters, we would require CMN to guarantee that all MOD designated build, outfit and refit work would have to be carried out in the United Kingdom; that we would expect CMN to form a properly constituted and adequately managed United Kingdom subsidiary to operate the business: that this company should be adequately funded and provided with acceptable parental company or bank guarantees of performance to match the level of work bid for and that the company would need to satisfy our national security procedures and MOD quality assurance requirements and provide information on their financial status.Subject to the above, the new company would be eligible to bid on equal terms with other United Kingdom companies for future MOD warshipbuilding and refit work but that MOD could only place orders with Swan Hunter if the company is on a sound financial footing and is able to offer acceptable terms and conditions and guarantees of performance. MOD orders will only be placed on the basis of competition and that they therefore need to make competitive, fully compliant bids if they are to win orders.We are prepared, in principle, to novate the Type 23 frigate contract subject to our company ownership conditions being satisfied and the agreement of satisfactory contractual terms and conditions.We will continue to support Swan Hunter's efforts to win export orders for warships of United Kingdom origin.
§ Mr. ColvinTo ask the Secretary of State for Defence what assessment he has made as to whether Constructions Mecaniques de Normandie can meet each of the conditions required of companies seeking to be allowed to compete for his Department's contracts.
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§ Mr. AitkenThe prospective purchasers of Swan Hunter Shipbuilders Ltd., in administrative receivership, have been asked to provide the information which we would normally seek from a company wishing to contract with my Department for the first time. I await their response.