§ Mr. HancockTo ask the Secretary of State for Defence if he will make a statement on spending within the budget on the Nimrod MRA4 programme; how much liquidated damages the MOD is seeking for the project's delay from BAE; what alternative means of delivering MRA4 capability are being considered; and how much longer the project is expected to be delayed. [30285]
§ Dr. MoonieThe budgetary data being sought by the hon. Member are contained in the Ministry of Defence's Major Road Project Report 2001 under section 2—"Project Costs", including information on the forecast receipt of liquidated damages. As to the question of further delay, the Major Project report also noted that the Department was engaged in discussions with BAE Systems over the incremental delivery of the MRA4 capability. These discussions are close to being finalised with the company. Until the negotiations have been completed, it will not be possible to be definitive about the impact, if any, on delivery.
There are no viable alternative means of delivery the MRA4 capability. Prior to selecting the MRA4 option. an investment appraisal was conducted that considered a full range of alternatives. The findings were conclusive and confirmed the requirement for MRA4. This view has not changed.