Carrier Strike Capability

Baroness Stuart of Edgbaston Excerpts

Thursday 10th May 2012 Commons Chamber

[Mr Hammond]

My hon. Friend is right. I made the precise point, in response to my right hon. Friend the Member for North East Hampshire (Mr Arbuthnot), that the cost of converting the second carrier to EMALS cats and traps was likely to be prohibitive; that has emerged from the work that has been going on. Completing the two carriers in STOVL configuration gives us optionality. It means that they can both operate the STOVL aircraft; that the 2015 SDSR can decide whether to bring the second carrier out of extended readiness and deploy it during periods of refit or extended maintenance of the first carrier; and that subsequent SDSRs can decide whether finding the extra crew and meeting the maintenance cost is an appropriate use of naval resources, depending on our assessment of the threat risk.

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

I am still trying to understand precisely what the new facts are that the Secretary of State so recently discovered. He mentions risk profiles and cost estimates, but surely they were known. Would it not be wise of him either to be more specific or, even better, to publish the advice that would show us what those new facts are?

[Mr Hammond]

The hon. Lady will remember that I spent three and a half years in a shadow Treasury brief, during which time I developed a healthily jaundiced view of the Ministry of Defence’s procurement process. Now that I am inside the Department and see the process from the other side, I understand that it is a little bit more complicated than nipping down to the local supermarket to buy a carton of eggs or a bottle of milk. These are immensely complex projects. The way they typically work is that they start with a high-level estimate, informed by the best information available. One then commits funds—this costs money—to do a more detailed appraisal that identifies the technical and financial challenges and risks around the project. That is precisely what we have done. In terms of the appropriate management of a large, complex project, the MOD has followed exactly the right process. It has delivered us the facts to which I referred, and we have drawn the appropriate conclusions from them.