Ajax Programme Cost 2022-01-10

2022-01-10

TAGS
Response quality

Questions & Answers

Q1 Direct Answer
Nick Smith Lab
Blaenau Gwent and Rhymney
Context
The cost of the Ajax programme has been a concern due to budget overruns and delays.
What recent estimate has the government made for the cost of the Ajax programme?
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.
Assessment & feedback
Response accuracy
Q2 Partial Answer
Nick Smith Lab
Blaenau Gwent and Rhymney
Context
The Ajax project has faced significant challenges, including poor procurement practices and safety concerns.
Can the Minister give us an expected timeline for resolving these issues?
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. We have received a draft report from Millbrook, as I outlined in my last statement, and progress is being made.
Assessment & feedback
The Minister did not provide an exact timeline for resolving issues but mentioned that progress is ongoing with some delays expected until July.
Progress Is Being Made
Response accuracy
Q3 Partial Answer
Context
Procurement processes have been criticised for wasteful spending, such as the sale of Royal Naval Hospital Haslar.
Can the Minister assure me that MOD's procurement and disposal decisions will maximise benefits for taxpayers and local communities?
I congratulate my hon. Friend on her elevation; she refers to the approval process for Ajax, which was indeed under the last Labour Administration. I think it passed maingate business approval in March 2010, around the same time that the National Audit Office was pointing out the multi-billion pound black hole that the Labour party was leaving in Defence at the time. Fort Blockhouse will not be disposed of until 2023, so there is time to get it right.
Assessment & feedback
The Minister did not provide assurances but referenced past decisions and timelines for future actions without concrete commitments.
Around The Same Time That The National Audit Office Was Pointing Out
Response accuracy
Q4 Direct Answer
Chris Evans Lab Co-op
Caerphilly
Context
Ministers were unaware of serious Ajax programme issues for two years before being informed.
What new measures have been put in place to ensure Ministers are fully aware of Departmental issues?
There is a whole raft of measures. We immediately accepted the vast majority of recommendations from the report. Important aspects include ensuring all relevant views on safety are part of the decision making process, and putting health and safety input into the highest ranks of the organisation.
Assessment & feedback
Response accuracy