To ask Her Majesty's Government what financial penalties they would incur if one new aircraft carrier was cancelled. [HL5888]

The Government remain fully committed to delivering the two ships of the Queen Elizabeth class, recognising the importance of HMS “Queen Elizabeth” and HMS “Prince of Wales” to our future carrier strike capability, wider defence needs and the sustainability of the UK shipbuilding sector. The QE class are key enablers to sustaining the sovereign capabilities signalled in the defence industrial strategy, in particular the high-end design, systems engineering and combat systems integration required to support the Royal Navy in the 21st century.

Any major changes, such as the cancellation of a carrier, to the QE class contract would first require a period of negotiation between the MoD and Aircraft Carrier Alliance (ACA) to agree what changes would need to be made to the programme. This would include any potential financial penalties resulting from that change, which could be significant. We have no intention of pursuing this course.

To ask Her Majesty's Government how much they envisage will be spent before completion of the new aircraft carrier project. [HL5890]

I refer you to the previous Answer given by my noble friend Lord Drayson on this subject on 9 July 2009 (Official Report, cols. 759-60). The latest cost and time estimates are currently going through the department's approval process. As is normal practice, we will not make any firm announcements until this process has completed.