§ 7. Mr. James Paice (South-East Cambridgeshire) (Con)What plans he has to reassess the contract for the future strategic tanker aircraft private finance initiative. [184474]
§ The Minister of State, Ministry of Defence (Mr. Adam Ingram)We are currently assessing whether placing a private finance initiative service contract with AirTanker Ltd. will provide the best value for money solution for the future strategic tanker aircraft project. No final decisions have been taken.
§ Mr. PaiceI thank the Minister for that answer. Can the House therefore assume that the question whether to go ahead with the project is still in the melting pot, as well as the decision on to whom the contract should be granted? If he intends to go ahead with the project, but is still considering who should do the work, I urge him to look again at the preferred option and to consider the alternative option of using refurbished aircraft adapted in Cambridge, in my constituency.
§ Mr. IngramAs my right hon. Friend the Secretary of State announced to the House in January 2004, AirTanker Ltd. has been judged to offer the best prospect of providing a value-for-money PFI solution. However, several detailed issues remain to be resolved on this complex PFI project before a final decision is taken. We are resolved to proceed with it once that assessment is completed. Clearly, air refuelling is a key military capability and it is important to take the time necessary to make the right decision for the armed forces and the taxpayer. I would have thought that the hon. Gentleman agreed with that. We shall make further announcements when appropriate.
I am aware that Marshall of Cambridge and other companies have submitted unsolicited alternative proposals for future air refuelling capability. Our evaluation remains focused on securing a value-for-money private finance initiative contract with AirTanker Ltd. I hope that that answers the question.
§ Mr. Lindsay Hoyle (Chorley) (Lab)We are considering an important contract. Does my right hon. Friend appreciate that the location of the base, where maintenance will be carried out, is also important for supply and back-up to the fleet? I believe that Warton is the right place for maintaining and basing the aircraft.
§ Mr. IngramMy hon. Friend can be assured of the importance with which we view the contract. The accompanying base and support mechanisms are clearly part of any solution, but my hon. Friend, like other hon. Members, will have to wait for the final announcement.