Shipbuilding: Warships

Lord West of Spithead Excerpts

Wednesday 14th November 2018 Lords Chamber

[Lord West of Spithead (Lab)]

My Lords, there has been a lot of talk about shipbuilding but very little building. It seems to me that we have to get a grip on things such as the Type 26 programme. We will now wait for six or seven years for the first frigate to appear, carrying all the costs of that yard, rather than pushing ahead, ordering all eight, getting all the long lead items and actually delivering them one a year. It seems that we are not grasping these key fundamental issues. The Solid Support Ships add into the programme, but we do not look at the real cost to the nation of not building them here in this country.

[Earl Howe]

My Lords, as regards Type 26, it is true to say that ordering ships in batches is normal commercial practice. For one thing, it enables lessons learned in building the early batches to be reflected in lower prices for the later ships, which of course achieves better value for money overall. Contracting for all eight ships up-front would have precluded us from benefiting from the potential economies of scale, which may now come from the successful export campaigns to Australia and Canada.