HL Deb 14 November 1979 vol 402 cc1378-80WA
The Earl of KIMBERLEY

asked Her Majesty's Government:

If they will make a statement about Sting Ray, the new lightweight antisubmarine torpedo under development for the Royal Navy and the Royal Air Force.

The MINISTER of STATE, MINISTRY of DEFENCE (Lord Strathcona and Mount Royal)

The Ministry of Defence has awarded the prime contractor, Marconi Space and Defence Systems Limited, a contract for the final development and initial production of Sting Ray lightweight torpedoes for the Royal Navy and Royal Air Force.

The contract includes substantial incentives for successful performance. Excesses or savings above or below an agreed target figure will be shared between the company and the Department in agreed proportions so that in general the higher the cost the lower the profit and vice versa. The company will also be eligible for bonuses for good progress and for improvements on specified operational performance. These arrangements constitute some of the strongest financial incentives the Ministry of Defence has ever negotiated for a project of this size and complexity. The readiness of private industry to accept the challenge of these risks and rewards is welcome and gives substantial confidence that delivery will be to time and cost.

The ultimate cost of the contract will depend upon the outcome of the incentive arrangements but is expected to be over £200 million in today's prices. Including previous development work (on a cost-plus basis) and possible further production orders, the total cost of the Sting Ray programme could be around £800 million at today's prices.

Sting Ray will be capable of being launched from helicopters, maritime patrol aircraft and surface ships, and will provide the advanced and highly lethal weapon needed by the Royal Navy and Royal Air Force in the 1980s and beyond to counter the increasing capability of Warsaw Pact submarines. It will progressively replace first the US Mk 44 and subsequently the Mk 46 lightweight torpedoes currently in service.

The Government expect its full commitment to completion of development and initial production will arouse considerable interest among allied and friendly countries seeking a new lightweight torpedo with Sting Ray's advanced features. This substantial prospective market will be energectically pursued, including any prospects for collaboration in further development which might arise.

House adjourned at twenty-four minutes past nine o'clock.