Oral Answers to Questions

Nick Smith Excerpts

Monday 10th January 2022 Commons Chamber

[Mr Wallace]

I should be delighted to meet my hon. Friend to discuss all opportunities to make use of that space.

[Nick Smith (Blaenau Gwent) (Lab)]

3. What recent estimate he has made of the cost of the Ajax programme.

[The Minister for Defence Procurement (Jeremy Quin)]

As reported by the Infrastructure and Projects Authority in July 2021, the budgeted cost of Ajax is £6.354 billion to manufacture the vehicle and bring it to full operating capability and for its first period of service. Forecasts are updated twice yearly and our current forecast is that we will deliver under budget at £5.915 billion, though that is subject to change. That includes our £5.5 billion firm contract with General Dynamics.

[Nick Smith]

Thank you, Mr Speaker, for the short tribute to our comrade Jack Dromey.

The latest document on Ajax is enough to make anyone weep. It points to an alphabet soup of accountabilities and a saga of poor procurement, and says that the vehicle thus far is not fit for purpose. And of course it has been a health and safety minefield. This project matters for our military capability and for the 4,000-strong workforce in south Wales and across the UK. In his December statement, the Minister ended on an optimistic note when responding to a question about the workforce from my hon. Friend the Member for Merthyr Tydfil and Rhymney (Gerald Jones). Can the Minister give us the expected timeline for fixing these issues?

[Jeremy Quin]

The hon. Gentleman is correct to say that I sounded an upbeat note in terms of the jobs in south Wales. We were right to commission the report. It was a thorough report and I believe it was right to publish it so that this House knew exactly where we stood on Ajax. On the question of employment, there are some 4,100 jobs across the country in 230 companies, and the programme is particularly important to south Wales. I was upbeat to the extent that I believe that we must work together with General Dynamics to fix this issue. We have now received a draft report from Millbrook, as I outlined in my last statement, and there is work to be done on that. We may not really get to grips with that until July, but progress is being made. Certainly I believe that the independent work that General Dynamics is doing in Horiba-Mira and elsewhere can resolve these issues. We need to test that very carefully, but we have invested very heavily in this project, it is an important capability and we are determined to make it work if we possibly can.