Mil News £2bn bill to cancel

John A Silkstone

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The cost of cancelling the latest order of Eurofighter Typhoon jets could leave Britain facing a bill of more than £2 billion, it is reported. Pulling out of Britain's commitment to buy a third tranche of the aircraft would also break maintenance and upgrade deals agreed in principle with the defence company BAE Systems, The Financial Times said.

The Ministry of Defence may also have to renegotiate arrangements to upgrade existing aircraft on unfavourable terms if it stops the latest order.

The Treasury and the Ministry of Defence are reportedly due to meet to discuss the cost implications of stopping the latest order.

Critics claim the third tranche is too costly and is not essential to defence requirements.

However, the other partner nations involved in the programme - Germany, Spain and Italy - would expect to be compensated for extra costs if Britain withdraws from the third production run.

Currently a memorandum of understanding sets the ceiling for compensation and fines at £2 billion.

But there are fears the total cost could be much higher if Britain cancels, with claims from industry expected to run into hundreds of millions and jobs put at risk.

An MoD spokesman said talks with partner nations over the future of the programme were continuing.

He said: "Ministers of the Eurofighter Typhoon Partner Nations met on April 2 to discuss the arrangements for the procurement of Tranche 3 aircraft. Good progress was made, however, further discussion will be required before all nations are able to make an announcement on the way ahead."
 
RAF to get third batch of Eurofighter jets

Isn’t it funny that four days after saying that they will not bother about the fight, the PM has a word with the MOD and four days later they say they are going to keep the fighter.

For once Gordon Brown is right. If it’s going to cost you £2 billion to stop it, then you may as well have it.

Silky



A third batch of Eurofighter Typhoon jets are to be bought for the RAF, the Government confirmed.

Gordon Brown has confirmed that the UK will move ahead with the final stages of procuring a third batch of Eurofighter Typhoon aircraft for the RAF.

Announcing the decision, Prime Minister Gordon Brown said it would strengthen Britain's defence capability and "create new jobs in advanced manufacturing that Britain needs to emerge stronger and fitter from this global downturn".

Defence Secretary John Hutton said: "We look forward to receiving an affordable bid from European industry that will allow us to proceed with a programme that will deliver advanced multi-role aircraft to the Royal Air Force and maintain high-technology skills and industrial capability across the UK and Europe.

The Ministry of Defence said a contract for the new jets would be signed once negotiations involving the manufacturers and the Eurofighter programme's partner nations - the UK, Germany, Italy and Spain - had concluded.

The number and cost of the aircraft are still to be determined as part of these negotiations.

The MoD said that at peak production, the Typhoon programme will help sustain 5,000 jobs at BAE Systems, 4,000 throughout aero-engine maker Rolls Royce and its supply chain and up to 16,000 in total in the UK aerospace industry.

The announcement will quell concerns that the order for a third batch of the controversial jets might be cancelled.

The other partner nations would have expected to be compensated for extra costs if Britain withdrew from the third production run.

The Eurofighter, seen as a replacement for the Tornado, has been dogged by delays and cost over-runs.

Critics claim it was conceived during the Cold War as a counter to the latest Russian fighters and is no longer a military priority.
 
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