Defence Budget and Transformation

Duncan Hames Excerpts

Monday 14th May 2012 Commons Chamber

[Mr Hammond]

Let me assure my hon. Friend that relationships with the Treasury have improved dramatically at a working level. My right hon. Friend the Chief Secretary and I have complete transparency on these matters and have worked together very closely to achieve this outcome. The Government are fully committed to the replacement of the Trident nuclear deterrent.

[Duncan Hames (Chippenham) (LD)]

I welcome the Defence Secretary’s decision to require an estimate of 10 years’ worth of support costs before a project is committed. It makes little sense, after all, to go to a cheaper supplier of respirators, for example, only to pay more each year in servicing them. Will that open the door to a more innovative approach from suppliers, so that we might increasingly be procuring not just kit but in-service capability?

[Mr Hammond]

I am glad to tell my hon. Friend that that is already happening. We are increasingly entering into availability contracts where the whole-life costs of the project are taken into account and capability is delivered in the most efficient way.