HC Deb 14 January 1986 vol 89 cc912-3
7. Mr. Soames

asked the Secretary of State for Defence when the Nimrod programmes will be completed.

Mr. Norman Lamont

The Nimrod maritime reconnaissance mark 2 programme will be completed this year. The completion date for the Nimrod airborne early warning mark 3 programme will depend on the outcome of the current negotiations with GEC Avionics Ltd. and on consequent decisions as to the best way to take the project forward.

Mr. Soames

In view of its disgraceful history and the length of time that this programme has taken to complete, what sanctions does my hon. Friend have in mind if the contractors fail to meet the due date this time?

Mr. Lamont

It would not be right for me to disclose what we might do, because we are negotiating with GEC on this matter. We wish to obtain a fixed price contract for the completion of the project to an acceptable operating standard and also within a short time.

We entirely agree with my hon. Friend that the progress of this project has been profoundly unsatisfactory.

Mr. Robert C. Brown

Does the Minister honestly believe in his original answer that the programme will be finished this year?

Mr. Lamont

I think that the hon. Gentleman misheard my answer.

Mr. Beaumont-Dark

Does my hon. Friend agree that instead of concentrating on spoiling some other project at Westlands, GEC would be better advised to concentrate on giving the shareholders and the country better value for the hundreds of millions of pounds that the Nimrod contract has so far cost, without the aeroplane flying successfully? Has not the time come for the company to concentrate on giving taxpayers value for what they have paid for?

Mr. Lamont

As is well known, this project is nearly five years late. The original cost at 1986 prices was some £856 million. Already, £874 million has been spent on this project and it does not work to a satisfactory standard. We take this matter seriously, but it is one that we shall have to sort out in negotiation with the company. It is in no doubt about the seriousness with which the Secretary of State and myself regard this project.