§ Mr. Frank Field
To ask the Secretary of State for Defence, pursuant to his answer to the hon. Member for Tynemouth (Mr. Trotter) of 2 July,Official Report, column 642, whether the Ministry of Defence will now be paying Swan Hunter more than the agreed successful tender for the work on the three Type 23 frigates.
§ Mr. Aitken
We have agreed an incentivised arrangement with the receiver under which any cost under or overrun will be shared between the receiver and my Department on a pre-determined ratio subject to an upper cost ceiling, which does exceed the original contract price. It is too soon to say whether the original contract price will be exceeded.