HL Deb 16 January 1989 vol 503 cc89-91WA
Lord Sefton of Garston

asked Her Majesty's Government:

What is their reaction to the statement by the Merseyside Chamber of Commerce that failure to buy British tanks will have a detrimental effect on employment in Merseyside, as well as on other parts of the North West; and whether, in view of the high unemployment rate on Merseyside, they will take this factor into account in reaching their decision on which tanks to purchase.

Lord Trefgarne

I refer the noble Lord to the statement made in another place by my right honourable friend the Secretary of State for Defence on Tuesday, 20th December, the text of which was as follows:

"With permission, Mr. Speaker, I would like to make a statement about the replacement of the Chieftain tank.

"Chieftain entered service with the British Army in 1965. Although it continues to give excellent service, it is now rather advanced in years and technology in this field has moved ahead. It has proven impracticable to organise an international collaborative tank project in an early timescale. Allied collaboration in the field of tanks and their armament remains an important objective for the future; but I have concluded that Chieftain must he replaced as soon as practicable by a tank developed nationally by this country or an ally. I have also decided, subject to satisfactory contractual terms, to upgrade the armament of the Challenger 1 tanks now in service by fitting them with an improved gun, known as CHARM.

"My department has accordingly conducted an assessment of the available tank options. The three main contenders are an improved version of the Leopard 2, manufactured by Kraus Maffei of Germany; an improved version of the Abrams M1, manufactured by General Dynamics of the United States; and the Challenger 2 Mk2 proposed by Vickers Defence Systems, which is an improved version of Challenger 1. Our assessment was complicated by the fact that the three tanks are not all at the same stage of development.

"All three contenders have the potential to meet the army's requirement. Our assessment took account not only of this factor but also of technical merit, risk, timescale, cost, reliability, stretch potential, interoperability with allies, logistic implications and the prospects for overseas sales.

"The size of the investment in a new tank makes it essential to conform to sound procurement practice and to minimise risk. After the most careful consideration, therefore, I have decided to give Vickers Defence Systems an opportunity to demonstrate that they are able to deliver Challenger 2 Mk 2 to specification, to time and to cost. Subject to agreement of satisfactory contract terms, my department will fund the company to undertake a demonstration phase which will last until the end of September 1990. This will require them to demonstrate within the contracted time that Challenger 2 Mk 2 is able to meet the staff requirement and can be successfully developed and produced to the required standard so as to achieve the required in-service date, and at a price which the company have already offered us. Precise criteria for performance and technical achievement have been established against which the success of the demonstration phase will be measured; I have set these out today in a written answer to the question from my honourable friend the Member for Shrewsbury and Atcham. An important task for the company will be to demonstrate that an improved ammunition round for the tank's main gun, which we believe will be necessary to match the technical developments of the future, can be successfully developed to the standard and in the timescale required. Intermediate milestones have been established within the demonstration phase at which the company will have to demonstrate satisfactory progress. This staged approach will enable us to keep our options open for the future, if this proves necessary.

"Mr Speaker, my decision to take the first steps towards replacing Chieftain is an important one for the Army and the NATO Alliance. Over the next 21 months Vickers Defence Systems will have an excellent opportunity to prove their ability to develop a successful tank. I commend my decision to the House."