§ Mr. Ben ChapmanTo ask the Secretary of State for Defence (1) what plans he has to change the practices under which his Department procures naval vessels; [129013]
(2) what plans he has to spread work between UK yards when (a) tendering for and (b) building naval vessels. [129015]
§ Mr. HoonThere are no plans to change the practices under which we procure naval vessels. It remains our policy that where possible orders are placed following competitive tendering (either direct by the Ministry of Defence or by the Prime Contractor), and that warships and major naval auxiliary ships are built in the United Kingdom. For other vessels, where we are bound by EC treaty obligations and World Trade Organisation rules which will not permit discrimination in favour of United Kingdom industry, every effort is made to ensure that United Kingdom yards have the opportunity to tender for the build of such vessels on an equal basis.
The Department has no policy to spread future shipbuilding work between specific shipyards. Such a policy would not deliver value for money or an efficient, effective industrial base. We seek, nevertheless, to ensure that our forward shipbuilding programme is capable of sustaining a competitive industrial base. For example we have required the T45 Prime Contractor to involve both Vosper Thornycroft and BAE Systems Marine in the design and construction of the initial contract for three T45 destroyers, announced on 11 July, to ensure a more effective competition for subsequent follow-on vessels.