MINISTRY OF DEFENCE
160/96 November 25, 1996
ROSYTH DOCKYARD TO BE PRIVATISED
Rosyth Royal Dockyard in Scotland is to be sold to the Babcock
International Group, James Arbuthnot, Minister of State for Defence
Procurement, said today.
He repeated the announcement made earlier today by Michael Portillo,
Secretary of State for Defence, at the Scottish Grand Committee in
Fife.
Privatisation is the best way forward for the taxpayer, and offers
Babcock and its employees the prospect of a secure long term future,
he said.
The Babcock Group has been responsible for commercial management of
the dockyard since 1987.
In answer to a parliamentary question from Peter Temple-Morris MP
(Leominster), Mr Arbuthnot said:
"Since the announcement in October 1993 of the Government's intention
to sell the Royal Dockyards, a series of separate negotiations has
been conducted with Babcock International Group for the proposed sale
of Rosyth Royal Dockyard PLC.
"I am pleased to say that negotiations with Babcock have been
concluded and we intend to sign the sale contract shortly, subject
only to acceptable final contract terms and conditions. That
agreement represents good value for money for the taxpayer and will
generate savings of #100M over ten years. It will also give Babcock
and its employees the prospect of achieving a secure long term future
for the Dockyard. To assist in that the Government has allocated a
significant programme of ship refit work to the yard, lasting well
into the next decade. The forthcoming refits of the carriers HMS
INVINCIBLE and HMS ARK ROYAL and the nuclear powered submarines HMS
SCEPTRE and HMS SPARTAN, amongst others, will take place at Rosyth.
My Department is today issuing a Consultation Document to the Trades
Unions about the impact of the sale on MOD employees."
# = pounds sterling
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