Early day motion tabled by primary sponsor Stephen Byers (Labour), on Friday, 3 November 1995, in the House of Commons. It is signed by 19 members in total.

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CONDUCT OF MINISTRY OF DEFENCE AND SWAN HUNTER SHIPYARD

That this House notes that a year ago the last ship built on the Tyne sailed from the Swan Hunter shipyard and that when the yard went into receivership in May 1993 a claim in excess of ??20 million had been made by Swan Hunter against the Ministry of Defence in respect of work carried out on the A.O.R.2; understands that before receivership a sum of ??8 million had been paid by the Ministry of Defence towards the amount claimed on condition that the payment remained secret; further notes that on 3rd December 1992 Mr Charles Betts, Director General of Surface Ships admitted that the A.O.R.2 contract, as amended, may impose liability on the Ministry of Defence; regrets the refusal by the Government to publicly acknowledge the strength of the legal claim against it and the interim payment of ??8 million; notes that the yard was sold to a non-shipbuilding concern in June 1995 and that within weeks of the yard's sale the Ministry of Defence agreed to pay a further sum of ??20 million in final settlement of the claim; deplores this cover up of information by the Government; believes that full disclosure of the Government's liability would have secured the future of Swan Hunter and retained shipbuilding on Tyneside; and calls on the Secretary of State for Defence as a matter of urgency, to investigate the conduct of his Department in this matter.

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Secondary information

Type

Early day motion

Reference

1581 

Session

1994-95

Subjects

Ministry of Defence Shipbuilding Swan Hunter Shipbuilders

Link

View this Early day motion on www.parliament.uk