§ Mr. HancockTo ask the Secretary of State for Defence what factors underlay the decision to halt the production phase of the Nimrod programme; what assessment he has made of the effect on jobs of halting the production phase; what plans he has to meet BAe Systems and the trade unions involved to discuss the effects of halting the production phase; and if he will make a statement. [116882]
§ Mr. IngramI refer the hon. Member to the answr given by my noble Friend the Minister for Defence Procurement in another place on 19 February 2003,Official Report, column 175–77W. The Agreement that was struck with BAe Systems to restructure the Nimrod contract, including a controlled stop to production, acknowledged that the programme had a history of financial loss and delay. It recognised the need to minimise the cost increases that have resulted from overlapping development and production programmes. Design maturity must be established before further production work for aircraft four to 18 can recommence. The Company continue to assure the Department that they are working in as sensitive way as possible to mitigate the effects of the proposed redundancy programme, including looking at ways in which they may retain the key skills they require to meet the requirements of the Agreement. There are best placed to manage the industrial relations issues that have arisen following the Agreement, though we do remain in close touch with BAe Systems and the trades unions on this matter.