HL Deb 08 February 2005 vol 669 c106WA
Lord Oakeshott of Seagrove Bay

asked Her Majesty's Government:

In relation to the recently renegotiated contract for the purchase of two Royal Fleet Auxiliary ships from Swan Hunter:

  1. (a) what were the total prices in the original and renegotiated contracts;
  2. (b) what were the original and renegotiated stage payments;
  3. (c) to what extent have cost over-runs been the fault of the Ministry of Defence; and
  4. (d) to what extent the contract renegotiations were influenced by the financial position of Swan Hunter. [HL1085]

Lord Bach

The original contract with Swan Hunter for design and build of two LSD(A)s was valued at £148 million. This has since been increased to £232 million, with a further £3 million added to cover enhancements that have included aspects to ensure the vessels comply with the latest statutory safety requirements.

Contractual stage payments agreed by the Ministry of Defence and the contractor are commercially sensitive and I am withholding this information under Section 43 of the Freedom of Information Act 2000.

None of the cost over-runs covered by the recent contract amendment is attributable to fault by the MOD.

The contract amendment negotiations were conducted solely to ensure the best value for money for the taxpayer was achieved in the delivery of this important new capability.