Shipbuilding: Warships

Debate between Earl Howe and Baroness Bryan of Partick

Wednesday 14th November 2018 Lords Chamber

[Baroness Bryan of Partick]

To ask Her Majesty’s Government what assessment they have made of the impact that the process for awarding contracts for building complex warships will have on shipbuilding in the United Kingdom.

[The Minister of State, Ministry of Defence (Earl Howe) (Con)]

My Lords, as set out in the national shipbuilding strategy, the Type 31e programme is the pathfinder for a new streamlined competitive procurement process which allows the Ministry of Defence to work collaboratively with industry to deliver warships to meet the Royal Navy’s needs. The Type 31e procurement is still under way. However, industry has welcomed the approach, and initial engagement indicates a healthy interest throughout the supply chain.

[Baroness Bryan of Partick (Lab)]

I thank the Minister for his Answer, but there is a strong case for awarding contracts for all Royal Navy ships, including those serving under the Royal Fleet Auxiliary, to UK shipyards. The Government are making an unnecessary distinction by insisting on putting RFA ships to international tender. Does the Minister agree that awarding these contracts to UK shipbuilders would provide certainty, and enable shipyards to grow in size and capacity, train more apprentices, help sustain their supply chains and, importantly, keep prices down? Does he also agree that this would be one of the MoD’s objectives: to contribute to UK prosperity?

[Earl Howe]

My Lords, I absolutely share the noble Baroness’s ambition for the prosperity of the UK shipbuilding sector. Future warship procurement will be restricted to UK-wide competition for reasons of national security. However, we think it right for other naval ships to be subject to open competition. This is not just because of the rules of the EU treaty. Of course, we hope that UK shipyards will be able to compete for those contracts, but they will win them only if they are internationally competitive. It is that competitiveness that will ultimately secure their prosperity, not only as suppliers in the UK context, but as potential exporters in the global marketplace.