HC Deb 06 January 2003 vol 397 c48W
Jim Dobbin

To ask the Secretary of State for Defence what discussions(a) Sir Robert Walmsley and (b) other Defence Procurement Agency officials have had with BAE Systems relating to monetary amounts connected to resolving issues on the Nimrod and Astute contracts; and whether the Defence Procurement Agency made agreements with BAE Systems concerning the Nimrod and Astute contracts. [88353]

Mr. Hoon

As my hon. Friend the Under-Secretary of State for Defence indicated in his answer on 10 December 2002,official Report, columns 222–23W to the hon. Member for North Essex (Mr. Jenkin) officials have been in urgent discussions with BAE SYSTEMS to examine the consequences of the slippage to the first flight of the Nimrod MRA4 and to explore how best to proceed. The present contract has not been amended and no contractual undertaking of any kind has been made by either party as to how to proceed. Officials are also in discussion with BAE Systems on a range of issues concerning the Astute contract.

No assurances have been given regarding the outcome of these discussions and as yet no agreements have been reached. We are, however, prepared to explore those areas where the scope of the contracts could be varied, where this would offer value for money for the taxpayer and where it would be in the nation's defence interest.

As a major supplier to MOD, BAE Systems officials have many and regular meetings with Sir Robert Walmsley on a range of projects, including Astute and Nimrod.

Mr. Crausby

To ask the Secretary of State for Defence whether Sir Robert Walmsley negotiated with officials of BAE Systems about issues arising from the Nimrod and Astute contracts; and how many meetings Sir Robert Walmsley attended with BAE Systems officials to discuss the Nimrod and Astute contracts in the last two months. [88427]

Mr. Hoon

BAE Systems is a major supplier to the Ministry of Defence. Representatives of the company have many and regular meetings with Sir Robert Walmsley on a range of projects, including Astute and Nimrod.