Work continues as costs rise
A TEESSIDE firm said today it was pressing ahead with work on the Royal Navy aircraft carrier programme, which is reported to be under threat due to soaring costs.
According to reports a memorandum from the consortium building the two 65,000-tonne ships warned the programme faced a ‘‘real fight’’ for survival following news it is running at £1bn over budget - 25% over the original cost estimate.
The Ministry of Defence (MoD) confirmed it was currently re-costing the programme, previously estimated at up to £4bn.
But Billingham-based McGill Services said it was “business as usual” after winning a £23m contract for modular cabins and wet spaces for the carriers, as well as a £4m order for furniture.
Managing director Jon Rokk said: “We’ve known for a long time the project is over budget but that’s nothing new in any MoD project.” McGill is looking for “an extra £2m-4m” of work from the programme, he added.
