The statement made by Archie Hamilton, the then Parliamentary Under-Secretary of State for Defence Procurement, in the House of Commons on 21 January 1987.
With permission, Mr. Speaker, I should like to make a statement on the Devonport dockyard.
My right hon. Friend the Secretary of State announced yesterday, in following up an answer to a question from my hon. Friend the Member for South Ribble (Mr. Atkins), that the Government are now satisfied that there exists the basis for an advantageous contract to be placed for the future operation of Devonport dockyard with Devonport Management Limited, which is a company formed by Brown and Root (UK) Limited, the Weir Group plc and Barclays de Zoete Wedd Ltd. I am sorry that the Official Report has not yet printed my right hon. Friend’s answer. However, I did write yesterday to those Members most concerned.
All three companies in the consortium are British, but Brown and Root is a United Kingdom subsidiary of the United States Halliburton company. As the hon. Member for Clackmannan (Mr. O’Neill) will recall from our discussions of the Dockyard Services Bill, the upper limit which we set for foreign shareholding in the companies bidding for the contracts was 30 per cent. In determining whether a particular shareholding should be considered foreign, account is taken of the parent companies. On that basis, Brown and Root’s share in Devonport Management Ltd. has been set at 30 per cent.
The House will recall that, in our paper to the trade unions of 4 December, we announced our preferred contractor for Rosyth. My right hon. Friend is at this moment chairing a meeting with general secretaries of eight unions to hear their views on that paper, before he takes a final decision.
In forwarding the paper on Devonport to the unions yesterday, my right hon. Friend proposed a meeting with them on 13 February to discuss that paper. No contract has yet been placed, and my right hon. Friend has said that he will do so only when the unions have had an opportunity to give him their views.