Defence Secretary Ben Wallace tonight backed giving bumper military deals to foreign firms to stop Britain’s armed forces ending up with “rubbish equipment” like Russia.
The Cabinet Minister fuelled fears he will snub a UK-led bid to build naval supply ships.
Insiders believe he is poised to give the £1.6billion contract for three Fleet Solid Support vessels to a bid spearheaded by Spanish company Navantia.
Unions are braced for the Tories to award the tender to Team Resolute, led by Navantia and involving Belfast-based Harland & Wolff and London-based ship designers BMT.
Team UK, involving BAE Systems and Babcock, are set to lose out.
Speaking at Defence Questions, Mr Wallace said “the initial phase of awarding the contract is due very, very soon”.
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But grilled by MPs about potentially sending work offshore, he told the Commons: “Complex military machines that keep us at the cutting edge of the world involve international collaboration.
“That’s the difference between us and Russia that has the Stalin taxi factory attitude and ends up with rubbish equipment.
“We end up with the best, because I also have the duty of giving the best to the men and women of the Royal Navy.
“I will find the contract that delivers the best, supports our steel base and supports British manufacturing.
“But I will not cut corners for party political ideology.”
He added: “What I expect from this contract, whoever is successful, is investment in our yards and investment in British jobs and investment in British supply chains.”
The 40,000-tonne Royal Fleet Auxiliary vessels will resupply Royal Navy warships with food, ammunition and explosives.
Four consortia were each given £5million by the Ministry of Defence to develop their bids as the Government began the “competitive procurement phase”.
The shortlist includes Team UK; Mumbai-based Larsen & Toubro, which describes itself as “India's premier infrastructure developer”; Dutch firm Damen Group; and Team Resolute.
Team UK estimates 2,000 British jobs will be safeguarded if it is awarded the contract, with 1,500 more protected in the wider supply chain - and another 2,500 jobs indirectly benefiting in communities surrounding yards.
Shadow Defence Minister Chris Evans told MPs: “The Fleet Solid Support contract presents a huge opportunity to the British shipbuilding industry as well as providing a shot in the arm for British steel - if the Government would commit to building British by default.”
Labour MP Alex Cunningham urged him to “restore pride” in UK shipbuilding and “commit to building these ships in British yards as the Labour Party would do”.
Fellow Labour backbencher John Spellar blasted the “folly” of Mr Wallace’s “proposal to offshore the purchases of the Fleet Solid Support ships to Spanish shipyards”.
