Ajax Armoured Vehicle Procurement

Lord Spellar Excerpts

Thursday 9th September 2021 Commons Chamber

[Jeremy Quin]

Thank you, Mr Deputy Speaker. I was smiling merely at the sporting analogy, which I do not think is appropriate. I have already mentioned the MPA’s valuable role, and I am grateful for the work that the IPA is doing in assisting us by looking at the project and how its management can be improved. It has a series of traffic light systems, and my right hon. Friend is right that two of our projects are rated red. There is a whole series of colours; from memory, three projects are green-amber. None is green, which would signal that there are no problems. However, in fairness, if we look at every major country acquiring major defence assets, we see that these are complex and difficult programmes. The importance of the MPA is that it draws attention to problems and to the issues that need to be undertaken and achieved to hit programme targets. A red rating does not mean that it is wholly unachievable; it does mean that there are very serious issues to be addressed, as is patently the case with Ajax, and as I would be the very first to admit that.

[John Spellar (Warley) (Lab)]

We have learnt some things today. Unachievable does not actually mean unachievable. The Minister also said that if eventually the programme ends, the liability lies with General Dynamics. What does that mean for the £3.5 billion that has already been paid for the delivery of only 14 vehicles? Will we get that back? Following the Chair of the Defence Committee, the right hon. Member for Bournemouth East (Mr Ellwood), and my right hon. Friend the Member for North Durham (Mr Jones), the most important question is: what are the timescales for the tests and for the re-engineering? What is the end date? At what stage—roughly what month, or even which quarter—will the Minister decide whether the project is still viable or when it is time to draw stumps and start again?

[Jeremy Quin]

What we have with General Dynamics is a firm price contract. That means that it has undertaken to deliver 589 vehicles for a set specification, and we have undertaken to pay it £5.5 billion for that number of vehicles, at that specification. There is clarity on the contract. It is a strong, firm contract on which GD is determined to deliver, and we are working closely with it. I am afraid, however, that I cannot give a firm date. I know that the right hon. Gentleman, like other hon. Members, would like me to do so—and I would, too. The reality is that we need to get those trials done and the tests analysed, and then we need to find out whether the proposed engineering solutions will work. The right hon. Gentleman is generous and would not wish me to provide alarm and concern to the employees and firms that are doing the work. I know that he appreciates that we need to do the work and ensure that we do our utmost to make the programme work.