Oral question asked in the House of Commons, by Philip Davies (Conservative). It was answered on Monday, 27 February 2006 on behalf of the Ministry of Defence.

Landing Ships Dock (Auxiliary) Project

Question: I thank the Minister for that reply, but he conveniently glossed over the fact that the cost of the contract with Swan Hunter is now double the original MOD estimate. I have a freedom of information request that indicates that, as at October 2005, the MOD had already made payments of £295 million to Swan Hunter out of a total revised contract of £309 million. The first ship is yet to be completed. If it has cost us that much to come this far, how much more will it cost to get these ships into service?

Answer: I did not gloss over that point, as the question that the hon. Gentleman tabled did not ask me to comment on it. I responded on the progress that has been made on procuring and delivering the ships, which is the most important aspect of all this. I do not deny that there have been cost over-runs. That is to be regretted, and it has implications for the rest of our procurement programme. The important point is that these ships are vital. The negotiations that have taken place not only with Swan Hunter but with BAE Systems on the completion of the contract must remain in confidence. The full contract price will no doubt surface eventually. Many Conservative Members are campaigning to close Swan Hunter—perhaps they should go up to the north-east and say why.

Secondary information

Type: Oral question
Reference: 443 c6-7
Session: 2005-06
Oral question type: 1st Supplementary
Chamber / Committee: House of Commons chamber
Subjects: Contracts Costs Procurement Navy Shipbuilding Warships Swan Hunter Shipbuilders BAE Systems
Link: View this Oral question on www.publications.parliament.uk