John Glen
Main Page: John Glen (Conservative - Salisbury)Department Debates - View all John Glen's debates with the Ministry of Defence
(12 years ago)
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Mr Hammond
A first-week midshipman could probably tell the hon. Gentleman that it is not normal to order a 65,000 tonne STOVL carrier without any cats and traps. With regard to the hon. Gentleman’s question on Rosyth, no decision has been taken on where the carriers will be maintained in future.
John Glen (Salisbury) (Con)
It is widely alleged by some that the through-life costs of the F-35B could compare unfavourably with those of the F-35C. What rigorous assessment has my right hon. Friend undertaken to ensure that we achieve value for money, having made this decision, and what wider lessons on the defence budget can be drawn for similarly important and large decisions in future?
Mr Hammond
To answer the last question first, I am drawing some very interesting conclusions about how to manage the defence budget on an ongoing basis and hope to share them with the House shortly. It is precisely because the F-35C variant, on the face of it, has a lower purchase cost and a lower through-life maintenance cost that this option was pursued at the time of the SDSR 2010, but operating the carrier variant will of course require the installation upfront of the catapults and arrester gears, which we now know will cost in the order of £2 billion and rising. On the basis of a properly discounted cash-flow analysis over 30 years, I am clear that the STOVL variant, given the current estimate of the cost of cats and traps, will now be cheaper.