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Armed Forces Equipment

Further to my announcements on 22, 25 and 29 March, I can advise the House that the Ministry of Defence has signed a £690 million engine support contract with Rolls-Royce for 15 years to see Royal Air Force Tornado aircraft through to their out-of-service date in 2025. In my statement of 15 December 2009, Official Report, column 801, I set out our intention to review the fast jet fleet mix in the course of the forthcoming strategic defence review. I can assure the House that this support contract provides sufficient flexibility for changes in future aircraft numbers, and will deliver excellent value for money for defence. It is expected that this new contract will deliver savings in the order of £180 million over the next 15 years. The RB199 Operational Contract for Engine Transformation 2 covers repair, maintenance, provision of spares and technical support, and builds on the current Rolls-Royce support contract.