HC Deb 03 February 1978 vol 943 cc331-2W
Mr. Ronald Brown

asked the Secretary of State for Defence which United Kingdom contractor has been engaged to undertake development work on the Stores Management System for the Tornado aircraft; how long the work has been proceeding; how much money, both direct payment and development money, has been paid to the contractor; and when the system is expected to be operational.

Dr. Gilbert

The United Kingdom company concerned is Marconi-Elliott Avionics Systems Ltd. The company was awarded a contract in April 1976 by the NATO MRCA Management Agency for the Stores Management System development work now proceeding. The availability of production units is planned to match the production of aircraft and the system should, therefore, become operational when RAF Tornado aircraft enter service. As regards costs, it is not the normal practice to reveal details of transactions between the NATO MRCA Management Agency, the prime contractor Panavia and its sub-contractor MEASL.

Mr. Ronald Brown

asked the Secretary of State for Defence why it is anticipated that the cost of the less complicated Stores Management System will be considerably higher than the original tender price submitted by GEC-Marconi-Elliott for a more complicated and sophisticated Stores Management System for the Tornado aircraft.

Dr. Gilbert

Estimated total costs of the Stores Management System now under development cannot be directly compared with the original tender price based on the first specification. However, it is not expected that total costs of the Stores Management System now under development will be higher than the costs that would have been incurred if work based on the original specification had been concluded.

Mr. Ronald Brown

asked the Secretary of State for Defence if he will publish in the Official Report the breakdown of the United Kingdom contractor's claims for work done to meet the many changes made to the first design of the Stores Management System; who authorised such changes; and whether such claims were included in the £1 million development money paid to GEC-Marconi-Elliott prior to the decision to downgrade the original design.

Dr. Gilbert

All changes to the original specification for the Stores Management System for the Tornado aircraft were authorised by the three partner nations and the NATO MRCA Management Agency acting in concert. As regards costs, it is not the normal practice to give details of contractors' claims or of payments made by the NATO MRCA Management Agency through the prime contractor. In accordance with the conditions of contract, the payments made did allow for approved changes to the specification.

Mr. Ronald Brown

asked the Secretary of State for Defence (1) if he will list in the Official Report the main features of the original specification for a Stores Management System for the Tornado aircraft against which GEC-Marconi-Elliott successfully tendered; and by how much their bid was lower than the next highest tender;

(2) if he will list in the Official Report the main features of the revised specification for a Stores Management System for the Tornado aircraft; where it differed from the original specification; and by how much the successful tender from GEC-Marconi-Elliott was lower than the next highest tender.

Dr. Gilbert

The specifications for the Tornado Stores Management System are classified. To reveal details of tenders submitted to the NATO MRCA Management Agency would breach commercial confidence and obligations to our partners.

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