Royal Navy: Type 31e Frigates

Baroness Smith of Newnham Excerpts

Wednesday 6th March 2019 Lords Chamber

[Earl Howe]

My noble friend draws attention to something very encouraging. The UK shipbuilding sector has been able to compete in the world market for very high-end specification frigates—it is the Type 26 frigates which he was referring to. This aids the issue of interoperability between allies, which he also highlighted. We welcome the fact that Australia and Canada have entered the fold of nations which will operate this vessel.

[Baroness Smith of Newnham (LD)]

My Lords, in light of the National Audit Office’s November 2018 report, which suggested that the MoD’s equipment plan remained unaffordable, falling about £10 billion short over the next 10 years, will the Minister explain to the House what plans the MoD has to ensure that the Type 31e frigates are delivered on time and, crucially, on budget? Are the new procurement arrangements intended to deliver that?

[Earl Howe]

The noble Baroness is quite right: in April, the forecast cost of the equipment plan exceeded the allocated budget of £7 billion over 10 years, which is the central estimate. Indeed, if we took no action, the plan would not be affordable. However, based on past experience as well as what we are doing, we are confident that we will successfully deliver the plan within budget, both this year and next year, through effective management, by monitoring and controlling costs as we go, and with the benefit of the additional money secured in the Budget.