Should Britain widen the field of Royal Navy suppliers and stop current contractors from running naval yards?
Short answerMore competition needs more production; without it, public yards with contracted design work may be more coherent than a state-supported private monopoly.
NotesThe answer rejects the idea that competition can be created simply by inviting more bidders. Firms survive only if there is enough continuing work to maintain skilled labour, facilities, and design capacity. A nuclear-submarine yard serving only the British government is simultaneously a monopoly supplier and a one-customer market. The state consequently pays the site's costs, upgrades, and private profit margin even though the activity is not meaningfully commercial. One alternative is to operate the yards as public dockyards and compete or contract the design work separately.