§ Mr. Temple-MorrisTo ask the Secretary of State for Defence what progress has been made on the sale of the Rosyth royal dockyard. [5177]
§ Mr. ArbuthnotSince the announcement in October 1993 of the Government's intention to sell the royal dockyards, a series of separate negotiations has been conducted with Babcock International Group for the proposed sale of Rosyth royal dockyard.
I am pleased to say that negotiations with Babcock have been concluded and we intend to sign the sale contract shortly, subject only to acceptable final contract terms and conditions. That agreement represents good value for money for the taxpayer and will generate savings of £100 million over 10 years. It will also give Babcock and its employees the prospect of achieving a secure long-term future for the dockyard. To assist in that, the Government have allocated a significant programme of ship refit work to the yard, lasting well into the next decade. The forthcoming refits of the carriers HMS Invincible and HMS Ark Royal and the nuclear-powered submarines HMS Sceptre and HMS Spartan, among others, will take place at Rosyth. My Department is today issuing a consultation document to the trades unions about the impact of the sale on MOD employees.