§ Mr. JamiesonTo ask the Secretary of State for Defence when he expects to make an announcement regarding the sale of Devonport dockyard; and if he will make a statement. [15249]
Mr. ArbutnotI am pleased to say that we will today be signing the sale contract for Devonport Royal Dockyard PLC, DRD, with Devonport Management Ltd., DML. This document also binds DML to agreed terms and conditions on project D154, the future facilities for the provision of nuclear refuelling and refitting at Devonport.
DML will be paying £40.3 million for the dockyard. The sale represents value for money for the taxpayer in excess of £40 million over 10 years and will transfer responsibility to DML for the provision of fully operable and licensable nuclear facilities to support Trident and other nuclear submarines into the next century. It will also provide DML and its work force with greater opportunities for commercial diversification.
We have completed consultation with the trade unions and will complete once we have received the necessary nuclear and other authorisations.
I am also pleased to inform the House that, following the signature of Rosyth sale contract with Babcock International Group on 12 December, which my right hon. 90W Friend announced to the Scottish Grand Committee on 25 November, the sale was completed on 30 January. Both these deals represent good value for money and are good news for the taxpayer.