HC Deb 28 June 2000 vol 352 cc500-1W
Mr. Hancock

To ask the Secretary of State for Defence how much his Department has paid to date on the joint project to develop a system of Tactical Reconnaissance Armoured Combat Equipment; what is the planned final cost; if this project is running on time and at agreed budget levels; and if he will make a statement. [127181]

Dr. Moonie

This is a matter for the Chief Executive of the Defence Procurement Agency. I have asked him to write to the hon. Member.

Letter from Robert Walmsley to Mr. Mike Hancock, dated 28 June 2000:

  • I am replying to your question to the Secretary of State for Defence on the collaborative Tactical Reconnaissance Armoured Combat Equipment Requirement (TRACER) programme. This matter falls within my area of responsibility as Chief of Defence Procurement and Chief Executive of the Defence Procurement Agency.
  • The joint programme with the United States to develop TRACER was formally launched with the signature of the programme Memorandum of Understanding in July 1998. Contracts for the current Project Definition phase were awarded to two UK/US industrial consortia in January 1999. These contracts will be of 42 month duration and are due to complete in July 2002. This phase of the programme is proceeding to schedule and within budget. UK expenditure on the joint programme to 31 March 2000 amounted to £30 million and the current estimate of the overall cost to the UK of this phase is £120M at current prices.
  • UK involvement in phases beyond Project Definition will be subject to further approval and will take account of parallel studies into the use of Unmanned Air Vehicles for battlefield reconnaissance. A realistic estimate of the total cost of the project is not possible in advance of the decisions on the balance of investment between platforms ie armoured reconnaissance and Unmanned Air Vehicles.
  • A feature of defence procurement is the need to accommodate new sophisticated systems within the resources expected to be available. Conflicting demands on the available resources inevitably lead to priorities being kept under review. The current budgetary review process in the US, which could have implications for the TRACER programme, is being closely monitored, and we are in regular contact with the US DoD.