CAMMELL Laird shipyard could be invited to bid for Royal Navy work again following publication of a hard-hitting report.

BAE Systems based in Scotland has enjoyed an exclusive monopoly over Navy contracts.

But a review headed by Sir John Parker said work on warships should be shared among companies across the UK.

The move would let yards such as Babcock, Appledore and Cammell Laird bid for business.

Sir John suggested new frigates built for export should be designed in a “modular” way which could see them shared between yards around the country and assembled at a central hub.

Sir John, chairman of mining giant Anglo American, said there is a "vibrant" UK shipbuilding, marine and defence supply chain sector which the Ministry of Defence should harness.

He said the procurement of naval ships takes too long from concept to delivery compared with other industries.

And he called for a "sea change", with "pace and grip" from the Government so that shipyards across the UK can win work and create jobs.

The report says BAE Systems should build the Type 26 series, describing the defence giant as having the breadth of technical and engineering talent and the most recent experience of building sophisticated warships.

But it adds that a new fleet of Type 31 naval frigates was urgently needed to maintain the Royal Navy's numbers and establish a UK exportable light frigate.

"There is no precedent for building two 'first class' RN frigates in one location," he said.

The MoD said the report will inform the Government's shipbuilding strategy, to be published next spring.

A statement said: "Sir John recognises the skill and experience Scottish shipyards possess.

"He argues that Scotland's cutting-edge technology presents an opportunity to implement modular construction more widely, a process in which ship components are produced across the UK before being assembled at a central hub.

Defence Secretary Sir Michael Fallon said: "I would like to thank Sir John for providing an ambitious vision of naval shipbuilding in the UK based on a new era of co-operation as part of our modern industrial strategy.

"This report will inform our national shipbuilding strategy to match the needs of the Royal Navy with the ability to design and build efficiently, maintain skills, and maximise export opportunities.

"This will ensure a strong naval shipbuilding sector and help deliver an economy that works for everyone."