§ Mr. Kevan JonesTo ask the Secretary of State for Defence (1) what action his Department is taking to ensure sub-contracting work for the alternative ships logistics to be built on the Rivers Tyne and Clyde is awarded to United Kingdom companies; [R] [8131]
(2) what proportion of the contract value of the alternative landing ships logistics to be built by Swan Hunters on Tyneside will be placed with north-east companies; and if he will list all United Kingdom and overseas subcontractors scheduled to receive orders of £500,000 and above. [R] [8130]
§ Dr. MoonieThe Department's contract with Swan Hunter requires the company to maximise the use of competition when awarding sub-contracts for the build of the Alternative Landing Ships Logistic. However, the final choice of supplier must rest with Swan Hunter as the prime contractor. It is up to prospective UK suppliers to766W submit competitively priced bids to the prime contractor for equipment that meets the Ministry of Defence's requirements.
Swan Hunter has so far placed only a small number of sub-contracts. While Swan Hunter has indicated that most sub-contract work is likely to be placed with UK companies, it is too early to say how much work will be placed with companies in the north-east.
Negotiations are under way for the contract with BAE Systems Marine, Govan. The same conditions will apply to the sub-contract for the BAE Systems' vessel once a contract is agreed.