House of Commons · Written Ministerial Statement
Ministry of Defence Contingent Liabilities
12 December 2022 · Ministry of Defence
Proposed by Ben Wallace Con Wyre and Preston North
Summarised by AI from the official record, so it can contain mistakes.
At a glance
Key points
- The Ministry of Defence has received approval to recognise new contingent liabilities related to the SKYNET 6 Programme.
- HM Treasury approved three contingent liabilities associated with the launch of SKYNET 6A.
- The Chairs of the Public Accounts Committee and the House of Commons Defence Committee were notified on 23 June 2020.
Issue summary
The statement addresses the approval for the Ministry of Defence to recognise new contingent liabilities related to the SKYNET 6 Programme.
Action requested
His Majesty’s Treasury has approved three contingent liabilities associated with the launch of SKYNET 6A, including financial exposure from loss of capability and long delay of launch. The Chairs of the PAC and HCDC were notified on 23 June 2020.
Key facts
- Three contingent liabilities are recognised for the SKYNET 6 Programme.
- SKYNET 6A is scheduled to launch in financial year 2025/26 using a SpaceX Falcon 9 rocket from Cape Canaveral.
- The worst-case post-mitigation financial exposure of risk of loss of capability is £720 million.
- A long delay of launch would result in an estimated cost of £253 million.
- Cross-waivers are standard practice for space launches with SpaceX and related parties.
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