NDI OPPORTUNITIES CONFERENCE: BUILDING FOR GROWTH
The Annual NDI Conference is taking place for the first time in Tortworth Court Hotel, near Bristol. On Tuesday 13th and...
NDI CRITICAL OF CALL TO AXE SHIPS CARRIERS
Saturday 13 March 2010
A former defence chief’s call for Government to axe the construction of two new aircraft carriers – being partly built in the North East – has been criticised by NDI, writes nebusiness.co.uk.
Lord Guthrie, who was chief of the defence staff between 1997 and 2001, said the £5bn carriers project was among the “nice to have but non-essential” programmes. And he said they would “distort” the £30bn defence budget for years to come.
However, NDI, whose members have already signed agreements with the Ministry of Defence to supply £225m of kit for HMS Queen Elizabeth and HMS Prince of Wales, said to cancel the project now would cost more in penalty clauses than the Government would save.
Robin Fox, Managing Director of NDI, said on a recent visit to shipyards in Newcastle, ministers had made clear the carrier project was at a “point of no return”.
He said: “NDI has the carrier programme in its DNA and will continue to promote the excellence of the SME supply chain to this and future naval ship programmes.”
In November last year, A&P Tyne, of Hebburn, secured a £55m MoD contract to build sections of two new Queen Elizabeth Class aircraft carriers, which will secure more than 200 jobs on Tyneside over the next five years.
Earlier this year, Imtech Marine & Offshore in Hebburn won a £120m contract to supply climate control technology for the carriers. Darchem at Stillington has an £8m engineering contract, and Billingham-based McGill Services is working on a £23m contract for modular cabins and wet spaces for the carriers, as well as a £4m order for furniture.
At 64,000 tons, the carriers will be the largest warships built for and operated by the Royal Navy. The first is due to come into service around 2016 and has a 50-year life span.
Lord Guthrie, former Chief of the Defence Staff between 1997 and 2001, said future battles were more likely to be on land than at sea, and argued that the Army should become the focus of future spending.
He said: “We can't just go for things which are nice to have. We actually need a larger fleet. But one way you won’t get a large fleet is if you have aircraft carriers. What we need are smaller, faster ships, ships to keep the sea lanes open.”
Lord Guthrie also questioned the proposed £20bn upgrade of the Trident nuclear deterrent, adding: “If we do upgrade it, I’d like to find a cheaper option.”
Original story by Iain Laing for nebusiness.co.uk on 13th March 2010
