Ajax Armoured Vehicle Procurement

Richard Drax Excerpts

Thursday 9th September 2021 Commons Chamber

[Jeremy Quin]

What we have with General Dynamics is a firm price contract. That means that it has undertaken to deliver 589 vehicles for a set specification, and we have undertaken to pay it £5.5 billion for that number of vehicles, at that specification. There is clarity on the contract. It is a strong, firm contract on which GD is determined to deliver, and we are working closely with it. I am afraid, however, that I cannot give a firm date. I know that the right hon. Gentleman, like other hon. Members, would like me to do so—and I would, too. The reality is that we need to get those trials done and the tests analysed, and then we need to find out whether the proposed engineering solutions will work. The right hon. Gentleman is generous and would not wish me to provide alarm and concern to the employees and firms that are doing the work. I know that he appreciates that we need to do the work and ensure that we do our utmost to make the programme work.

[Richard Drax (South Dorset) (Con)]

I have great sympathy for the Minister’s finding himself in this situation, but I also have sympathy for the taxpayer, who seems to be hammered on a regular basis under this Government. On the 3.5 billion, can he assure me that the taxpayer will get the money back? Also, on this and future contracts, will he make it his business to ensure that the taxpayer is completely and utterly protected?

[Jeremy Quin]

I reassure my hon. Friend that this is a firm price contract. It is a good contract. We have gone over it, as he can imagine, and there is a requirement for GD to produce the vehicles to the specification in return for the funds expended. He would not expect me to go through the details of that contract, which are commercially sensitive. He is a member of the Defence Committee, and I hope that there may be a way in which, in a different forum, we may be able to shed some more light, but he will understand that commercial sensitivities are such that to go through the details of the contract in this House at this time would not be appropriate.