Warships work could be delayed
Dec 11 2008 By Karen McLaughlan
DEFENCE Secretary John Hutton is due to make an announcement today on the future of two new aircraft carriers amid speculation that the project - which is set to bring work to the Tees Valley - could be delayed.
There are reports he could postpone their entry into service by up to two years as the Ministry of Defence (MoD) attempts to cut costs.
Work on the £4bn project was due to begin next spring, with the vessels entering service in 2014 and 2016.
The HMS Queen Elizabeth and HMS Prince of Wales will be the biggest and most powerful surface warships ever constructed for the Royal Navy.
Companies across the Tees Valley are set to prosper from the project.
Stillington-based Darchem Engineering announced recently it had won an £8m contract to supply parts for the carriers. And Hartlepool’s Heerema also hopes to be in the running for work on the scheme.
An MoD spokesman said: "The MoD has been examining its equipment programme to identify potential savings and re-prioritise spending to support current operations better.
"The aims of the examination were to adapt to the rising cost of defence equipment and to provide more support for current operations.
"We hope to make an announcement shortly.’’
Mr Hutton’s announcement will be in the form of a written ministerial statement.
Recent reports suggested he was considering two options to spread costs at the cash-strapped MoD - either delaying the Queen Elizabeth’s in-service date by 12 months or putting back the Prince of Wales by up to two years.
The department confirmed last month that all its major programmes were under cost-cutting scrutiny in light of the tougher economic times.
The carriers received the long-awaited green light back in May from the then Defence Secretary Des Browne.
Their construction and assembly at shipyards in Portsmouth, Barrow-in-Furness, Glasgow and Rosyth was expected to create or sustain 10,000 jobs across the UK.
