§ Mr. ButlerTo ask the Secretary of State for Defence when a decision will be taken on the future of the Phoenix remotely piloted vehicle programme; and if he will make a statement. [18774]
§ Mr. FreemanThe Ministry of Defence has reviewed the Phoenix programme to determine how best to proceed in the light of delays to the programme and remaining technical problems.
Subject to the satisfactory conclusion of an agreement with the prime contractor, GEC-Marconi Avionics, we have decided that an additional programme of work on Phoenix should be undertaken to resolve the remaining technical difficulties and to demonstrate satisfactory system performance over a series of rigorous flight trials. This programme of work, which will last about one year, will be undertaken at the contractor's expense. The MOD will make no further payments to the company for the supply of Phoenix until the successful completion of the programme.
1140WWe believe that, provided the remaining technical problems can be overcome within an acceptable time scale, the Phoenix system will provide a cost-effective means of meeting the Army's need for an unmanned airborne surveillance system. Should GMAv fail at any stage to demonstrate satisfactory progress during the programme of work, the Ministry of Defence will, however, be prepared to cancel the project. While the work is in progress we will, therefore, examine potential alternative systems, in case it does not prove practicable to bring Phoenix up to an acceptable standard.
The prime contractor's undertaking to carry out the necessary work at its own cost and risk will require the company to apply considerable additional resources. We welcome this substantial commitment on its part, which reflects the confidence expressed at the most senior levels of the company in its ability to produce an effective system. In the meantime, the position of the Ministry of Defence and the interests of the taxpayer have been fully protected.