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Royal Dockyards

Volume 87: debated on Monday 18 November 1985

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asked the Secretary of State for Defence if he will list the dates of the proposed visits to Her Majesty's royal dockyards at Rosyth and Plymouth, Devonport, of the contractors who have expressed an interest in tendering for commercial management.

There has already been a number of visits by companies to each of the dockyards. Further visits are expected but precise dates have yet to be agreed between the companies concerned and the dockyards.

asked the Secretary of State for Defence if he will publish a table showing for 1987–88 and subsequent years for which figures are available, his latest estimate of the savings from dockyard commercial management.

Estimates of savings remain in line with those given by my right hon. Friend the Under-Secretary of State for Defence Procurement on 23 July 1985 at column 497.

asked the Secretary of State for Defence if he will indicate his working assumption for the range of profit margins assumed in the award of contracts for the refitting of naval vessels under his proposed scheme of commercial management.

The rate of profit for work which the royal dockyards will be competing in open competition with other yards in the private sector will, of course, not be known. So far as non-competitive work is concerned, the pricing will be on a risk basis under Government profit formula arrangements, employing the appropriate rate of profit as recommended at the time by the Review Board for Government contracts.

asked the Secretary of State for Defence what is his latest estimate of the cost of consultancy fees in the preparation of studies on commercial management for the royal dockyards.

The latest estimate of the cost of consultancies so far engaged to undertake studies on commercial management for the royal dockyards is £2·2 million.

asked the Secretary of State for Defence if he will agree to make available the tender documents to be issued when applications for the award of the franchises for managing the royal dockyards are invited.

It is not the normal practice to publish tender documents, and those in respect of the royal dockyards will contain classified information. However, it is our intention to publish as much information as is consistent with national security.