Lord Tunnicliffe
Main Page: Lord Tunnicliffe (Labour - Life peer)Department Debates - View all Lord Tunnicliffe's debates with the Ministry of Defence
(5 years, 5 months ago)
Lords ChamberThe 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.
My Lords, on 20 July 2016, the then chief executive of Defence Equipment and Support, said to the Defence Committee that,
“the eight Type 26 frigates are approximately £8 billion-worth of planning going forward”.
I interpret that as meaning that a Type 26 frigate will cost £1 billion. The Government have consistently said that the Type 31e frigates will cost a quarter of £1 billion each. Just how incapable will these frigates be, or does the Secretary of State have a magic wand?
My Lords, the Type 26 is a high-end specification, anti-submarine warfare frigate; not unnaturally, that specification makes it expensive. The Type 31e is an adaptable, general purpose frigate, subject to completely different procurement processes. However, it should not be inferred from that comparison that the Type 31e will be in any sense a low-grade warship. Of its kind, we intend it to be a world-beater, which other Governments will wish to buy.