Defence giant BAE Systems faces losing monopoly on building warships for Royal Navy

DEFENCE giant BAE SYSTEMS faces losing its monopoly on building warships for the Royal Navy.

City veteran Sir John Parker is expected to urge the MoD to axe BAE’s exclusive deal in a report published today.

BAE is building two aircraft carriers and has a contract for Type 26 frigates.

After that, the report will recommend future contracts — such as for the Type 31 frigate — are put out to tender.

The move will let rivals such as BABCOCK, APPLEDORE and CAMMELL LAIRD bid for business.

An insider said: “The MoD needs to prove it can get value for money for taxpayers and honest competition is a sure way to deliver this.

Firms like Appledore and Cammell Laird have delivered complex ships for industry on time and on budget and should get a chance to bid.”

Sir John will also recommend the MoD focus on “block building”, where sections of ships are built in separate docks then bolted together.

The Defence Select Committee said last week that the Navy had shrunk to a “dangerous and historic low”.

It criticised Type 45 Destroyers, built by BAE Systems and costing £1billion each, for breaking down in hot weather.