HL Deb 24 February 2004 vol 658 cc22-4WS
Baroness Crawley

My right honourable friend the Secretary of State for Defence (Mr Geoffrey Hoon) has made the following Written Ministerial Statement.

We announced. in February last year that agreement had been reached with Bae Systems on the way ahead for the Nimrod MRA4 programme and undertook to report significant developments to the House. We are pleased to announce that, following detailed negotiations, a contract amendment, formally embodying the agreement, was signed on 23 February 2004.

Signature of the contract amendment demonstrates the positive relationship between the MoD and the company and the joint commitment to deliver this important military capability within the terms of our agreement. This contract amendment, however, although important, is not an end in itself. The work over the past year in putting the agreement into effect has set the programme on a much sounder footing for the future. Risks and challenges remain. however, and we are working hard with the company to assure the long-term stability of the programme.