Supplementary memorandum submitted by
the Ministry of Defence (SHP 8B)
At the session of the Scottish Affairs Committee
on 19 June which I attended, John Robertson expressed a concern
that Swan Hunter (Tyneside) Ltd were preparing to sub-contract
further work on ALSL hull fabrication, in addition to the bow
sections already sub-contracted to Centraalstaal. I undertook
to find out what the position is and I appreciate this opportunity
to report back to you.
Swan Hunter is currently reviewing the ALSL
programme in light of how best to recover a current slippage of
two-three months and in order to benefit from their learning and
experience over the past nine months of fabrication. This review
is being conducted in full consultation with BAES Marine (who
are building ships 3 and 4) and entails a rescheduling of the
programme for the first ALSL (01), which is being built by Swan
Hunter.
I can confirm that Swan Hunter has no plans
to subcontract any further units to BAES Marine at Govan or elsewhere.
Informal enquiries have led Swan Hunter to conclude that such
a proposal would not be cost effective in any event. I should
stress that there was never any question of the sections being
offered overseas.
The contract we have with Swan Hunter requires
them to construct the ships on their premises, except as may otherwise
be agreed with the MOD. Should Swan Hunter propose for work to
be carried out elsewhere, it would be subject to our requirement
that no fabrication or assembly of structural components may be
sub-contracted outside the UK. If Swan Hunter choose to sub-contract
elements of steelwork to other UK shipyards it would be in keeping
with this requirement and subject to the MOD being satisfied that
the contractor concerned is capable of undertaking the work.
I hope that this explains the situation. I am
copying this letter to Brian Wilson and Anne McGuire.
Lord Bach
Minister for Defence Procurement
25 June 2002
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