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Sir Keith Speed (Ashford): Does my right hon. Friend accept that the all-party maritime group, which I chair, welcomes this decision, for which we have campaigned for more than two years? The new yacht should not only be built in Britain, but contain the finest British marine technology, to show the rest of the world that we still lead in maritime affairs.

Mr. Portillo: Speaking from his position and with his background, my hon. Friend's approval is especially welcome. I emphasised in my statement that the ship will provide a showcase for British skills, engineering and design. That, too, will be of great benefit to our nation.

Mr. Andrew Faulds (Warley, East): May I assure the right hon. Gentleman that most people throughout the country will warmly welcome this statement? Does he accept from me that most people throughout this country very much appreciate the services rendered by Her Majesty the Queen and Prince Charles to Britain? Does he not agree with me that the Carlton TV programme was a load of unutterable rubbish and totally unrepresentative of British public feeling? [Interruption.] I will be heard. Does he not finally agree that very few people in this country want to see a series of political presidents?

Mr. Portillo: If I may add to that, very few people in this country want to see a brave Labour Member who speaks up for the monarchy being barracked by his colleagues in the way that the hon. Gentleman was. I appreciate his remarks. Apart from their feelings about the monarchy, many people will look forward to the 400 or 500 jobs that I estimate will be created by the contract. As was said by the hon. Member for Dunfermline, West (Ms Squire), who has left the Chamber, the shipyards will welcome the work.

Sir Hector Monro (Dumfries): Does my right hon. Friend accept that, with the exception of a few Opposition Members, the nation will warmly applaud the Government's decision? Her Majesty the Queen and other members of the royal family will be able to visit the Commonwealth and other nations in a royal yacht that is fit to show the fine maritime heritage of this country. Could he say a little more about the design of the yacht? May I hazard the thought that, after free competition, and bearing it in mind that Britannia was built on the Clyde, the new royal yacht might also be built there?

Mr. Portillo: Certainly, the Clyde would be a candidate, but there must be a competition and a specification. In welcoming my right hon. Friend's remarks, I must make it clear that the new yacht's specification will be different from that of Britannia. In those days, the designers envisaged that the royal family would travel long distances on board. Today, they travel by air and use the yacht as a residence. Modern technology will allow lower running costs and a smaller crew. There will be substantial differences, but some important things will stay the same. The yacht must be

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prestigious. It must carry status. It must have royal apartments and state rooms that are suitable. It must create a great impression when people visit it, as something special, something remarkable, and something uniquely British.

Rev. Martin Smyth (Belfast, South): May I, on behalf of not only my party but well over 1 million people in Northern Ireland, warmly welcome the statement? Even 77 years after the Republic separated from the kingdom, there are those in the Republic who still have royal yacht clubs and other titles because they, too, are royalists. May I express the hope that when the time comes for the competition, Harland will be one of the bidders, maintaining a tremendous tradition? As a Belfast Member, I hope that there will be those with the vision to bring Britannia to the new Lagan waterfront, which is making Belfast boom. Amidst all the cringing, it is encouraging to realise, when people think that we are bankrupt, that the £90 million is coming from the reserve.

Mr. Portillo: It is £60 million. I welcome what the hon. Gentleman says. I know that the decision will be welcome to his constituents and to, I think, the vast majority in the Province. He rightly points out that it will be welcome north and south of the border in the island of Ireland. I am pleased that he reminded us of that. I thank him for the two bids, one in respect of Britannia and the other in respect of the new yacht. They have been carefully noted. Again, I recognise that those claims could be very strong.

Mr. Michael Colvin (Romsey and Waterside): Does my right hon. Friend agree that many of our people, including some living in the constituencies of Opposition Members who poured scorn on the decision, owe their jobs in part to the £2 billion of trade that the royal yacht has won overseas during the time that she has been operating as our national flagship? Does he further agree that in future the Britannia replacement should be called our national flagship, because that is what she is, rather than a yacht, which conjures up visions of junketing around the Mediterranean? If my right hon. Friend is thinking in terms of berthing her, she should be berthed in London as our national flagship, where most people can see her, rather than being tucked away in Portsmouth.

As my right hon. Friend is canvassing opinion on laying up the old Britannia, rather than confining his market to the United Kingdom, will he bear in mind the dependent territories? The rundown of his Department's expenditure in Gibraltar has led to that dependent territory having to switch its emphasis to creating an offshore finance centre, which is precisely the sort of economy that the royal yacht has hitherto been used to promote. Perhaps if he is looking for a fitting final resting place for Britannia, Gibraltar should be the place for her to berth. That would be welcome and it would give just the right message to Spain.

Mr. Portillo: I am tempted to call, "Any more bids?" I heard very well what my hon. Friend said, but I reiterate what I said in the statement--that we shall be looking for a use of public interest in the United Kingdom, and that stands. I cannot accept that anything that was in

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Portsmouth would be tucked away. I understand the promotion of the case for London. It is not within my authority by any means to propose that the royal yacht should be called anything other than the royal yacht. That is a contentious suggestion.

My hon. Friend is right to recall how much the royal yacht does for the promotion of trade and how much good it can do for the dependent territories. However, I do not want the yacht to be seen simply as a commercial transaction, simply in pounds and pence. It also involves questions of our feeling about ourselves as a nation, and that matters, too.

Miss Kate Hoey (Vauxhall): I warmly welcome the announcement to replace Britannia. Anyone who has seen the thousands of people who flock to see Britannia anywhere in the world--I particularly look back to the pictures from South Africa last year--must know the importance not only to the economy but to the whole image. Given the announcement last week of £500 million--a large amount--to be spent from the millennium fund in Greenwich, which is a project that we can support, although there are certainly some queries about the amount, why has the Secretary of State not considered taking £60 million from that fund, so that the money comes from public money, but money that has been paid for by people through the national lottery?

Mr. Portillo: The answer is simple. The legislation governing the national lottery does not allow us to use it as a substitute for proper public spending, and that is an important rule. This is a burden that properly falls on the nation and the taxpayer. While it would have been possible to think about private finance, it is not possible to use the national lottery for that purpose.

I very much welcome what the hon. Lady said and I am hoping that, given the pressure this afternoon from at least some Labour Members, by the end of the statement we might hear from the Labour Front-Bench team that it has decided that it wants to back the Government's action and to confirm that, in the unlikely event that Labour was elected, it would maintain the pledge that we have made today. Although it is clear that the Labour party is badly split on the issue and that the old republican guard is here in strength, none the less many hon. Members such as the hon. Lady would welcome such a commitment.

Mr. John Wilkinson (Ruislip-Northwood): In congratulating my right hon. Friend on his admirable decision, which was announced in the most felicitous language, may I be practical and ask that the specification include a helicopter deck? Secondly, could the ship's company of the Royal Navy, who take a great pride in fulfilling that most important role for the duration of their tour, from time to time include distinguished members of the Royal Naval Reserve, who would enormously appreciate the honour of serving on board?

Mr. Portillo: I can accept my hon. Friend's first suggestion straight away. Of course, a helicopter deck should be part of a modern ship. The possibility of arriving and leaving by helicopter and, indeed, of evacuating by helicopter in an emergency, should be part of the design. My hon. Friend's second suggestion is extremely important, and I should like to consider it. I mentioned state rooms and, of course, there must be

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provision for a band to play on board, because that is an important part of the image, prestige and projection associated with the royal yacht.


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