To ask the Secretary of State for Defence (1) what proportion of the cost of designing and building the two recently ordered aircraft carriers is to be paid to (a) BAE Systems and (b) Thales; [98313](2) how the programme to design and build the two recently ordered aircraft carriers is to be shared between BAE Systems and Thales; and if he will make a statement. [98312]
Our two new Future Aircraft Carriers (CVFs) have not yet been ordered. On 30 January 2003, my right hon. Friend the Secretary of State for Defence announced the way forward for CVF. Our conclusion was that, to obtain value for money and provide the best capability, an alliance approach would offer the best meansof delivering a programme of this magnitude. We envisage that the alliance will be led by BAE Systems as the preferred Prime Contractor, with responsibility for project and shipbuilding management. Thales UK will assume a major role as the Key Supplier of the whole ship design. We intend the Ministry of Defence to take up a formal role within the Alliance. Negotiations on the alliance arrangements are now underway, and it is therefore not yet possible to state what proportion of the costs will be paid to BAE Systems or Thales. It is not intended to place the Prime Contract for the Demonstration and Manufacture phase of the CVF programme, during which the ships will actually be built, until the spring of 2004.