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(In third paragraph, corrects number of Type 31 frigates)
LONDON, Nov 29 (Reuters) - Britain needs to speed upshipbuilding for the Royal Navy and spread work more widelyacross companies and shipyards to help create jobs and ensurethe future of the industry, an independent report said onTuesday.
Britain's biggest defence contractor is BAE Systems, which together with its Clyde shipyard in Scotlandwill be the main beneficiary of the government's estimated 8billion pound ($10 billion) order for eight new anti-submarinewarships, the Type 26.
However, Britain should take a different approach for itsnext expected ship order of Type 31 frigates, John Parker,chairman of the government-commissioned National ShipbuildingStrategy, said in a report.
The ships should be built at shipyards across the countryand in a more modular way to help speed up construction,encourage competitiveness and keep costs lower.
"Our investigation shows that probably the lowest cost andthe fastest time of build (for the Type 31) can be done bybuilding it in a distributed way across the country and also, ofcourse, distribute prosperity and highly skilled jobs," Parkertold BBC radio.
Shares in BAE Systems, which worked with other shipyards tomanufacture Britain's two new aircraft carriers as part of apartnership with Babcock and Thales, tradeddown 0.2 percent at 1242 GMT, outperforming the bluechip indexwhich was down 0.5 percent.
Parker, also chairman of mining giant Anglo American, said Britain should also make sure the Type 31 wassuitable for export, to help provide a bigger market and abrighter future for an industry which employs about 25,000people directly and indirectly.
He also said the government should speed up its shipordering process and replace naval ships when required, ratherthan spending funds on prolonging the lifespan of older ships,to give taxpayers better value for money.
The government will fully respond to Parker'srecommendations in Spring 2017.
A recent report by parliament's Defence Select Committeenoted: "At 19 ships, compared with 35 in 1997, the Royal Navy'sfrigate and destroyer fleet is way below the critical massrequired for the many tasks which could confront it."
Defence Minister Michael Fallon said in an initial statementthat Britain's exit from the European Union made ensuring thefuture of the industry even more important.
"The themes of Sir John's report show where industry,working with Government, needs to invest in order to increaseopportunities for the shipbuilding sector," he said. "It alsomeans using our shipbuilding expertise to become a leadingproducer of ships for export. We must use the opportunities thatBrexit provides to become a global trading power again."($1 = 0.8015 pounds) (Reporting by Sarah Young; Editing by Alexandra Hudson)