Posted on 09/16/2009 10:07:52 AM PDT by sukhoi-30mki
Row over Tory plans to axe £30bn defence projects
Michael Evans, Francis Elliott and Philip Webster
Three of Britain’s biggest defence projects with a combined value of nearly £30billion could face the axe if the Conservatives win the general election next year.
George Osborne, the Shadow Chancellor, said in a speech on the economy that he would hold a Budget within weeks of a victory. Afterwards, he was asked to identify specific savings that an incoming Conservative government might make.
In comments that surprised and dismayed his own colleagues, he cited the £20billion Eurofighter/Typhoon project, the £4billion project to build two aircraft carriers and the £2.7billion order for 25 A400 transport aircraft as areas ripe for cuts. Later, however, he admitted that he did not know what penalties might have to be paid out under break clauses if the contracts were scrapped.
The RAF already has 55 Eurofighter/Typhoons, costing £3.8billion, and the Ministry of Defence has spent about £1billion on early work on the two 65,000-tonne aircraft carriers. More than £500million has been spent on the A400M programme to replace the ageing C130K Hercules planes. This year The Times revealed that he was looking at ditching the Airbus A400M, which has been dogged by technical problems and is years behind schedule. A senior Conservative source denied that any specific projects had been earmarked for cuts.
Mr Osborne’s intervention appeared to surprise senior colleagues, including Liam Fox, the Shadow Defence Secretary.
The Conservatives have said in the past that such decisions should be taken as part of a strategic defence review. A Tory frontbencher said that Mr Osborne had been “amateurish” to raise question marks over projects without making clear the context in which final decisions would be taken.
(Excerpt) Read more at timesonline.co.uk ...
Lester Pearson returns
I heard Osborne’s speech. He didnt say any of that. Half of what is reported here is exaggeration and presumption on what he did say, and the rest is pure speculation.
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