§ Patrick MercerTo ask the Secretary of State for Defence (1) if he will make a statement on the delays in the contract to build six type 45 destroyers; [39201]
650W(2) if he will make a statement on the additional costs expected due to delays in signing a contract for the building of six type 45 destroyers. [39200]
§ Dr. MoonieAs my right hon. Friend the Secretary of State for Defence announced to the House on 10 July 2001,Official Report, columns 676–85, the timing of the contract was dependent upon the completion of satisfactory negotiations between the Ministry of Defence and the prime contractor, BAE Systems Electronics, and between the prime contractor, BAE Systems Marine and Vosper Thornycroft.
While it was originally planned that by September 2001 the parties would enter into a legally binding agreement, intensive work on the programme has clarified the timescales in which the shipbuilders had to make their investment decisions to maintain the T45 programme. The commitment, as announced by the Minister for Defence Procurement on 18 February 2002, has been made in time to allow the shipbuilders to make their investment decisions and participate in the programme as planned.
It should be emphasised that both shipbuilders have been working hard in the Type 45 programme under the prime contractor for around two years. The ship design, which is rapidly maturing, has been unaffected by the negotiations between the prime contractor and shipbuilders over the build contracts.
There are no additional costs due to the later than anticipated contract signing and we remain fully committed to achieving our scheduled in service date for the First-of-Class of 2007.