§ Mr. KeetchTo ask the Secretary of State for Defence what the quarterly cost of the strategic sealift programme is; and if he will make a statement. [83469]
§ Dr. MoonieThe cost of strategic sealift varies according to the operational, overseas maintenance and exercise commitments of the Ministry of Defence. In the last full financial year 2001–02, the quarterly costs were approximately: £5.5 million, £10.8 million, £11.6 million and £6.2 million.
§ Mr. KeetchTo ask the Secretary of State for Defence what services have been provided under the strategic sealift (Ro-Ro) programme; what compensation arrangements exist for breaches in the PFI contract; and if he will make a statement. [83470]
§ Dr. MoonieThe purpose of the strategic sealift programme is to provide the Ministry of Defence with roll-on roll-off (Ro-Ro) ferries for the transportation of military equipment. The PFI contract is with AWSR Shipping Ltd. The first ship, M.V. Hurst Point, has been delivered to AWSR and came into use in August.
In the event of a breach, the PFI contract provides for MOD to be compensated by way of reduced payments or liquidated damages. Were there to be fundamental default, other arrangements would apply up to and including contract termination.