§ 42. Mr. MaddenTo ask the Secretary of State for Defence if he will make a further statement about penalty costs associated with the Trident programme.
§ Mr. SainsburyThe Trident programme includes a wide range of contracts. In accordance with MOD policy, all provide where applicable for payment of liquidated damages by the contractor to compensate MOD for the consequences of late delivery of equipment. Equally, provision is made for the prime contractor to recover incurred expenditure and additional costs arising if the MOD cancels a contract. The level of recovery possible will vary, and will depend on a number of factors, including the timing and circumstances of the cancellation.