Government to sell off naval dockyards

THE remaining naval dockyards where Royal Navy ships and submarines are repaired and refitted are to be sold by 1996 - and foreign purchasers have not been ruled out, writes Christopher Bellamy.

The two dockyards at Devonport and Rosyth have been under commercial management since 1987, but Malcolm Rifkind, Secretary of State for Defence, yesterday revealed the MoD would be seeking tenders early next year for the sale of the sites with buildings and equipment.

Speaking in yesterday's defence debate in the Commons, Mr Rifkind said: 'In the light of the advances made under commercial management since 1987, we are proposing early next year to seek competitive tenders from the private sector for the sale of both dockyards as separate and independent commercial entities.'

The management contracts expire in April 1996 and the Government expects the sale to take place as close as possible to that date. MoD sources said the current management companies - Devonport Management and Babcock Thorn at Rosyth - would not necessarily be front runners.

Prospective purchasers would be given detailed information about the costs and facilities of refitting at the two yards. One purchaser would not be allowed to buy both dockyards and the MoD would require guarantees from the purchasers that they will continue refitting Navy ships.

The announcement comes soon after the June decision to concentrate nuclear submarine refitting at Devonport.