Defence Contracts: British Steel

Lord West of Spithead Excerpts

Monday 21st November 2016 Lords Chamber

[Earl Howe]

My Lords, we have a policy to build our warships in British yards. Defence requirements for steel in that context are usually sourced by our prime contractors, taking into account—as the noble Baroness rightly said—value for money, quality and the time factor. We remain engaged with our prime contractors to ensure their support in implementing our policy guidance on steel procurement. That emphasises the importance of pre-market engagement activities to facilitate access to supply-chain opportunities for UK suppliers.

[Lord West of Spithead (Lab)]

My Lords, at the risk of a cull on admirals, surely a good way forward would be to order more ships; you would then need more steel. Will the noble Earl confirm that the new solid support ships to be built will use British steel and not be built somewhere abroad? If they are built here with British steel, that helps British shipbuilding and our steel industry, which is a strategic necessity for a nation such as ours, the fifth richest in the world. We need that capability in our country.

[Earl Howe]

My Lords, the ambition of Sir John Parker in his national shipbuilding strategy is for UK shipyards to be in an excellent position to compete internationally for procurement opportunities such as the fleet solid support ships. The emerging principles of the strategy should be applicable to those ships without the need to restrict procurement to the UK.