§ Mr. JenkinTo ask the Secretary of State for Defence what savings to the Defence Budget accrued from the delay in the delivery of the ASRAAM missile. [54902]
§ Dr. MoonieI refer the hon. Member to the answer I gave on 1 February 2002,Official Report, column 601W, when I informed the House that the delay in the ASRAAM In-Service Date had cost the Ministry of Defence approximately £7 million. The MOD has collected liquidated damages from the contractor, on the basis of terms agreed at the time of contract signature. Liquidated damages are paid to the MOD in respect of the loss and damage caused by the late delivery of the missiles; this includes both the MOD's additional costs and the loss of capability. Accordingly, although the amount of liquidated damages received from the company exceeds £7 million, the MOD does not regard this as a saving.