HC Deb 15 October 2001 vol 372 cc946-7W
Mr. Hancock

To ask the Secretary of State for Defence (1) what the value of the British Army next generation anti-armour weapon contract is; when the tender closing date is; when the contract start and completion dates are; and if he will make a statement; [7180]

(2) if he will list the companies which have bid for the British Army next generation anti-armour weapon, indicating which ones are United Kingdom only companies; and if he will make a statement. [7181]

Dr. Moonie

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

Letter from Robert Walmsley to Mr. Mike Hancock, dated 15 October 2001: I am replying to your questions to the Secretary of State for Defence on the British Army's next generation anti-armour weapon programme. The programme to which you refer is the Next Generation Light anti-Armour Weapon, known as NLAW. These matters fall within my area of responsibility as Chief of Defence Procurement and Chief Executive of the Defence Procurement Agency. The companies, which have submitted bids to meet this requirement, are SAAB Bofors Dynamics AB and Matra BAe Dynamics (UK) Ltd. Neither are wholly UK owned companies, however, Matra BAe Dynamics (UK) Ltd. is a UK registered company jointly owned by BAE Systems and EADs. BAE Systems also have a shareholding in SAAB Bofors Dynamics parent company. The final cost of the NLAW contract is subject to negotiation, but it is expected to be in the order of £400m. The tender closing date was 21 September 2001 and it is anticipated that the contract will be let next year. The contract could run for up to 25 years, if all the in-service support options are selected, but it is expected that the Development and Production elements will be complete by 2009.

Mr. Hancock

To ask the Secretary of State for Defence when MBT-Law UK's British Next Generation anti-armour weapon will be ready for service; what the projected cost of this contract is; and if he will make a statement. [7340]

Dr. Moonie

MBT-LAW is one of the competitors to meet the Next Generation Light anti-armour weapon (NLAW) requirement. The preferred bidder will be announced next year, and a contract let shortly afterwards. We currently anticipate this system being ready for service in 2006–07. The final cost of the NLAW contract is subject to negotiation but it is expected to be in the order of £400 million.