To ask the Secretary of State for Defence how much money is owed by his Department to Swan Hunter; and if he will make a statement.

My Department does not accept that it owes the company any money. Payments on MOD contracts are fully up to date in accordance with the terms of those contracts.Negotiations are in progress with the receiver over a claim against my Department by the company in respect of the auxiliary oiler replenishment vessel—AOR-02. The maximum amount currently justifiable has already been paid to the company.Negotiations on the completion of the three type 23 frigates currently under construction at the yard also continue. Progress payments are being made in accordance with the terms of the contracts. Arrangements are being made for one such payment to be made today.