Secret talks have been held about selling vital Royal Navy warships to save money in the Ministry of Defence, it was claimed yesterday.
A number of Type 23 frigates plus two amphibious assault ships would be sold to Chile and Brazil under the plans.
But last night sources within the department reacted with fury and dismissed the claims, denying there was any such plan to sell current ships to the South American nations.
The Government is currently conducting a security and capability review, which is largely seen as a cuts exercise. Service chiefs have been told to find billions in savings over the next decade to fund an ambitious equipment programme.
Secret talks have been held about selling vital Royal Navy warships – including HMS Bulwark (pictured) – to save money in the Ministry of Defence, it was claimed yesterday
Insiders said a number of frigates – used to hunt Russian submarines – were also discussed.
They added that Brazil and Chile were discreetly told the ships could soon be for sale, despite a Tory pledge to ensure the fleet of 13 frigates would not be reduced.
The Navy’s two amphibious assault ships HMS Albion and HMS Bulwark were also mentioned to the South American countries, according to a report in defence journal IHS Jane’s.
Defence select committee chairman Dr Julian Lewis told his committee yesterday he had heard a rumour about the ‘mad scheme’.
Defence Secretary Sir Michael Fallon replied that the option of losing both ships has yet to come to ministers for a decision. ‘We have not had any proposals to get rid of either Albion or Bulwark – they have not reached my desk in any shape or form – so this is simply speculation,’ Sir Michael said.
Last night Menzies Campbell, Liberal Democrat defence spokesman said: ‘The idea of getting rid of any more frigates is absolutely bonkers.’ He said numbers of the ships were already ‘woefully low’.
A number of Type 23 frigates plus two amphibious assault ships – such as HMS Albion (pictured) – would be sold to Chile and Brazil under the plans
‘It is vital Britain retains a strong navy that is able to respond to threats abroad,’ he added.
Sir Michael said the review was about ‘modernisation’ and that threats had intensified in ways other than ‘storming beaches’, in reference to alleged plans to sell off HMS Albion and HMS Bulwark.
He also admitted that if soldiers were to be given a pay increase, it would have to come from the defence budget, which could result in further cuts.
Defence Secretary Sir Michael Fallon said: ‘We have not had any proposals to get rid of either Albion or Bulwark – they have not reached my desk in any shape or form – so this is simply speculation’
He said he did not accept a ‘necessary trade-off’ in which troop numbers would have to be reduced if they were paid more, and that the money could be found elsewhere.
Quizzed about the current military capability review, he said its ‘principal driver’ was that the threats identified in 2015 ‘have got markedly worse’.
He said there had been an ‘extraordinary increase’ in Russian submarine activity in the North Atlantic. And in controversial remarks, he said criticism of Saudi Arabia in Parliament was harming British arms sales of the Eurofighter Typhoon jet to the country.
Pressed on why the deal to sell a second batch of jets is yet to be secured, Sir Michael said those involved had been ‘working extremely hard’.
He told MPs that he travelled to the country in September to discuss progress on the deal with his opposite number.
But he added: ‘I have to repeat, sadly, to this committee that obviously other criticism of Saudi Arabia in this Parliament is not helpful, and I will leave it there.’
Last month Sir Michael said he wanted more defence funding to confront threats facing the UK.