Oral Answers to Questions

Jesse Norman Excerpts

Monday 31st January 2011 Commons Chamber

[Dr Fox]

There is always a need to maintain the dialogue, if only to make it clear to Iran that there is no weakening in the position of the international community. It is also essential that, as well as just talking, real measures are taken. If we are serious about the Iran issue, we need to look at it this way. It is a binary question: Iran will either become a nuclear weapons state or it will not. If we are intent on the latter course, the international community needs to act as well as speak. At the present time, that primarily means ensuring that the financial sanctions, which are having an effect on the regime in Tehran, are fully implemented and that no domestic considerations are put ahead of international security and well-being.

[Jesse Norman (Hereford and South Herefordshire) (Con)]

4. What assessment he has made of the value for money of the AirTanker private finance initiative project.

[The Parliamentary Under-Secretary of State for Defence (Peter Luff)]

The price for the future strategic tanker aircraft service was set in competition and also assessed against a public sector comparator before the contract was let in March 2008. Nevertheless, because I understand the concerns about the use of PFI for military procurement, I commissioned a thorough, independent review of the contract, which concluded that there was now no persuasive value-for-money case for pursuing an alternative mechanism to secure this urgently needed capability.

[Jesse Norman]

I thank the Minister for that reply. This is but one of many apparently wasteful and expensive private finance initiative projects within the Ministry of Defence—including, most recently, dog kennels at the Defence Animal Centre that are reported to cost more than rooms at the Park Lane Hilton hotel. Does the Minister think there is a case for taking a very detailed look at the MOD’s PFI contracts to lower their cost and improve value for money to the taxpayer?

[Peter Luff]

I agree with my hon. Friend and I am glad to say that a lot of work is being done within the work strands on renegotiation of PFI contracts. Three operational PFI projects have been selected and the pilot phase has commenced with the aim of making savings as part of the renegotiation process. The three projects are the Corsham development, Main Building redevelopment and the defence sixth form college. We expect to have the potential savings identified by the end of March.