Nimrod Early Warning System (Hansard, 11 February 1986)

§ 11. Dr. Marek
asked the Secretary of State for Defence what is the current cost of the Nimrod AEW Mk. 3.

§ 12. Mr. Stephen Ross
asked the Secretary of State for Defence if he will make a statement on the latest position on the Nimrod air early warning system.

§ Mr. Younger
By the end of Novermber 1985 some £646 million at outturn prices had been spent or committed on the Nimrod AEW Mk. 3 project; this equates to £882 million at 1985–86 average prices. We are currently in negotiation with GEC Avionics Ltd. and hope shortly to be in a position to announce our decision on the best way forward.

§ Dr. Marek
Does the Secretary of State agree that the technology should continue to be available in this country at GEC? Does he further further agree that the jobs associated with that technology should continue to exist in that or a closely-related sector? Does he agree that the public should get value for money from this policy? If he agrees with those three principles, what is he going to do about the mess he is now in?

§ Mr. Younger
I agree about the desirability of having British technology kept to the fore. That is important, as are the jobs involved. However, my other job is to ensure that the country gets good value on defence spending, and it is in that context that I have had these negotiations.

§ Mr. Ross
Has not a great deal of money already been spent on this project, which was not the design that the RAF wanted in the first place? What is the estimated cost of finishing the project to RAF standards and satisfaction, and what is the time scale involved?

§ Mr. Younger
Both those matters are part of the negotiations that I am having with GEC Avionics. We are trying to establish the answer to both those questions—how much it will cost to complete the project, and the likely time scale. The hon. Gentleman will understand that I cannot comment further on that while the negotiations are in train.

§ Mr. Favell
How much more will the project cost? Does my right hon. Friend agree that while we must learn from the lessons of the past, it would now be false economy to abandon the Nimrod project, in view of the fact that all 11 aeroplanes are, to all intents and purposes, ready, thanks to British Aerospace, Woodford, and that it would cost at least between £600 million and £800 million to purchase an American alternative, which would take at least three years to deliver?

§ Mr. Younger
That is a good summary of a difficult situation. As always, my objective will be to do my best to see that the RAF gets a product that will do what it wants it to do, on time and at reasonable cost.

§ Mr. Robert C. Brown
Is the right hon. Gentleman aware that when the decision was taken 10 years ago to keep the technology and the work force of a British firm together, it was a good decision? This aircraft was then urgently required. It is now 10 years on and we are still waiting for this urgent requirement. When will we finally resolve this matter?

§ Mr. Younger
It is of great importance to the defence of the country, and I agree with the hon. Gentleman's remark about urgency. He will I am sure agree that it is important from all points of view, not least that of the RAF, that we get the equipment to do the job that we have asked it to do.

§ Mr. Wilkinson
Is it not a fact that the Mark 3 Nimrod saga is the worst procurement scandal since world war 2? Will my right hon. Friend have the courage to grasp the nettle and not put more good money after bad, but rather procure the E3A Sentry, which works, and which will bring commonality with the rest of air defences in western Europe?

§ Mr. Younger
I very much appreciate what my hon. Friend says and note it carefully, but he will understand that I would not want to comment on it while negotiations are in train.

§ Mr. McNamara
If Nimrod were cancelled, would that be a fundamental or just a cash review? Can the right hon. Gentleman confirm that on Thursday it will be proposed in Cabinet that the Government purchase or lease six AWACS, while a conclusion about the future of the Nimrods is made? Would it be possible to put the GEC system into a different British aeroplane?

§ Mr. Younger
Those are mostly points that are part of the negotiations. No decision of any kind has been taken to cancel the Nimrod project at this stage, and I cannot comment on anything that might or might not come up before my right hon. Friends and me in Cabinet meetings. It is far from clear that GEC equipment could just be put into another aircraft. The whole thing holds together as one system.