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Defence: Procurement

Volume 476: debated on Monday 2 June 2008

To ask the Secretary of State for Defence what review of the defence procurement programme is in progress; and when he expects announcements to be made about the next stage in the procurement of (a) future Lynx, (b) the future carrier programme, (c) the Astute programme, (d) JSF, (e) FRES, (f) Type 45, (g) A400M and (h) Nimrod MRA4. (203416)

[holding answer 6 May 2008]: We are undertaking an examination of our planning assumptions for equipment over the next 10 years, with a view to bearing down on cost increases to equipment programmes and shifting the overall balance of defence procurement to the support of operations. This will provide an important input to our next planning round.

We announced on 8 May 2008 that we have provisionally selected the Piranha 5 as the preferred design for the Future Rapid Effect System (FRES) utility vehicle. We announced on 20 May 2008 that the MOD is ready to go ahead with the contract signature for the future aircraft carriers. Any further announcements on individual projects will be made when appropriate.

To ask the Secretary of State for Defence what the projected financial costs are for each service of each equipment procurement project expected to come on stream in each year from 2010 to 2015; what the individual payment terms of each project are; and from which budget the funding for each will be derived. (205587)

The detailed financial data for the Department’s equipment projects forms part of the internal advice to Ministers on the overall affordability of the Defence programme and contains information which is commercially sensitive. I am therefore withholding this information as its release would, or would be likely to prejudice commercial interests. Financial data relating to some of these projects, however, can be found within the National Audit Office Major Projects Report 2007 Project Summary Sheets, (HC 98-11 Session 2007-08 dated 30 November 2007), as published by the Stationery Office and available on the NAO website at:

http://www.nao.org.uk/publications/nao_reports/07-08/070898ii.pdf