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Swan Hunter

Volume 227: debated on Friday 2 July 1993

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To ask the Secretary of State for Defence what is the current state of the negotiations between his Department and the receivers of Swan Hunter as to the completion of the three frigates being built at the yard.

I am pleased to announce that we have concluded an agreement with the receiver which, subject to the maintenance of satisfactory levels of productivity, will allow the three type 23 frigates to be completed on Tyneside. This agreement gives the receiver time to continue his efforts to find a buyer for Swan Hunter. I hope that the management and work force at Swan Hunter will deliver the three ships to the Royal Navy within cost and to time and to the standards of quality which we have come to expect from Swan Hunter.