§ Mr. Sayeed
asked the Prime Minister if she will make it the policy of Her Majesty's Government that, when tenders for warships are considered, total Government expenditure including both procurement costs and industrial assistance are taken into account and that the option offering the lowest net figures should be accepted.
§ The Prime Minister
It is the Government's policy that, save in exceptional circumstances, warship orders should be awarded to the tender which offers best value for the defence budget. At the same time, where warship builders are publicly owned, the Government's policy is that tenders for defence work should be on an unsubsidised basis.