§ Mr. FranksTo ask the Secretary of State for Defence whether he is now able to make a statement on the procurement of 155 mm self-propelled howitzers for the Army.
§ Mr. SainsburyIn my reply on 8 June 1988, at column586, to a question from my hon. Friend the Member for Berkshire, East (Mr. MacKay), I announced the award of a contract to Vickers Shipbuilding and Engineering Limited (VSEL), worth some £4 million, for further work on its AS90 self-propelled howitzer. This was to enable it to demonstrate more fully the performance of its design against the British Army's specification and to secure option prices for any subsequent production orders. In the interim period we have also closely followed the development in the United States of the M 109 howitzer improvement programme.
Following a very careful and detailed evaluation of the two systems, and subject to the agreement of satisfactory terms, I have decided to place a contract with VSEL for the completion of development and a production order for 179 AS90 self-propelled howitzers. This contract, with initial spares and support, is worth some £300 million. I have also arranged an option for a further quantity of howitzers which may be exercised during the next two years.
The new weapon will replace our 105 mm Abbot guns and will significantly enhance artillery firepower. Its introduction will mark a further step in our planned programme to ensure that the armed services are equipped with up-to-date and highly capable equipment.