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Proceeding contribution from Peter Luff (Conservative) in the House of Commons on Wednesday, 7 December 2011. It occurred during Adjournment debate on Trident.


Trident

It is my intention to do that, but I am conscious of the time. I hope to be able to answer all the hon. Gentleman's questions. I should now like to turn to the specific costs of the current and future deterrent programmes. The simple fact is that being a responsible nuclear weapons state requires investment. Submarines and their ballistic missiles and nuclear warheads are extremely complex and require considerable skill and expertise to design, maintain and operate safely, and I make no apology whatsoever for taking seriously our responsibilities for the safe custody of these systems, nor for spending the money needed to do that. That is not to say that we have not closely scrutinised the costs of the programme. Indeed, Members will be aware that we announced last year as part of the SDSR a number of measures to do just that. I should like to dwell briefly on the different elements of the nuclear deterrent programme. The White Paper highlighted three key areas: the platform, the infrastructure and the warhead. At 2006 prices—I emphasise that it was at 2006 prices—the Department estimated that the platform would cost between £11 billion and £14 billion, and each of the other two elements would cost between £2 billion and £3 billion. Separately, there are also the costs of maintaining and running the in-service deterrent—what we have at present—such as the facilities at the Atomic Weapons Establishment, which I will come to later. If I may start with the platform—the boats—earlier this year ““The Initial Gate Parliamentary Report”” stated:"““assuming a four boat fleet, the replacement submarines will remain within the £11-14Bn estimate.””" We made it clear in the report and, indeed, in the White Paper itself that those values are at 2006-07 constant prices, and the report also indicated that, when we take into account inflation, the costs equate to £25 billion. Costs have simply not doubled, as reported on CND's website; that is wrong. This misreporting of the true position is extremely misleading. Of the £25 billion, we expect to have spent £3.9 billion by main gate. That includes the costs of the concept and assessment phases, and the majority of that work is in the maturation of the design. With regard to long-lead items, we have been clear that we have minimised spend as far as possible. Over the coming years, we will place orders for different specialist items, which take a number of years to be delivered, totalling some £500 million. That is just 2% of the total purchase cost. We plan to place the order for the specialist high-grade steel only in 2014, so that it is ready for manufacture and cutting in 2016 after the main investment, or main gate, decision. We will not procure any items for the fourth boat until 2016, when the build decision is made. Any accusation that, by purchasing those items, we will be locked into a particular strategy before main gate in 2016 is simply wrong. The simple fact is that these highly specialised components take time to be delivered. Identifying long-lead items is part of any well-run programme, and nothing that we are doing will prevent us from being able to make the right decision in 2016. I should like to explore that at more length, but I am conscious of the time. With respect to infrastructure, the value-for-money review concluded that no significant investment was needed in the immediate future. To study the infrastructure requirements in detail, we will spend about £8 million over the next three years and will continue to look for opportunities to drive down running costs and the need for any new investment. Despite being at an early stage of the programme, we still expect to meet the White Paper estimate of between £2 billion and £3 billion. On the third element, my attention was drawn recently to speculation that implied that we had already spent at least £2 billion on a new warhead. That is simply not true. We are investing at the Atomic Weapons Establishment to ensure that we sustain the capabilities that we need to maintain the current stockpile. It is true that that will give us the capability that we need to design and produce a new warhead if and when required, but that is not the purpose of the expenditure. We will take the appropriate decisions at the right time, and Members will recall the commitment in the SDSR not to take any decisions on a new warhead until the next Parliament. We expect a replacement warhead to meet the White Paper estimate of between £2 billion and £3 billion.


Secondary information

Type
Proceeding contribution
Reference
537 c148-50WH 
Session
2010-12
Chamber / Committee
Westminster Hall
Subjects
Finance Nuclear weapons Trident
Link
View this Proceeding contribution on www.publications.parliament.uk