Building an economy aircraft carrier could save £1bn, Cameron to ...The Guardian Tues 5 Oct 2010
......The Guardian has also learned that a £14bn PFI project – one of the largest ever – to finance a military training academy in Wales is likely to be scrapped as part of the strategic defence review, to be published later this month.
The new centre at a 1,000-acre site near Barry is intended to consolidate the three armed services' existing training facilities around the country, able to cater for up to 3,000 students at any one time.
The 30-year contract, awarded to defence firm Qinetiq and US firm Raytheon, covers staff, catering and maintenance. But the cost has already increased from the original estimate of £12bn to a figure closer to £14bn, while the government has made clear its dislike of PFI-style contracts.
One senior defence source described its future as "pretty bleak" and its fate could also be sealed at the national security council meeting. Officials say the work by the consortium – already costing the MoD more than £80m – has not provided what is required.
A spokesman for the consortium argued that it would be "illogical" to scrap the new centre because it would free up 1,200 sailors, soldiers and airmen involved in the military's existing training programme. The first aircraft carrier, which Cameron at the weekend indicated was going ahead, will initially be equipped with ageing Harriers. Each carrier was supposed to be equipped with 69 new Joint Strike Fighters, but the government could slash this number by at least half to make further savings. Each fighter is now estimated to cost at least £100m, a 50% increase, and the price is still rising.
Why has there not been open discussion and monitoring of this project by Welsh Politicians who promoted this project like lemmings even though the information was blatantly misleading. The jobs figure was always a myth, although the 5,000 lie was repeated again and again by politicians and the media -the BBC news just the other day.Do they never learn?
What of the Aerospace Business part of the St Athan development? Again Tens of £millions spent with no returns. The Red Dragon project, to provide MOD aircraft servicing and refits, collapsed with nothing to replace it. Gullible Ministers and over-bullish WDA. The “advanced aerospace business” park, promoted as “capable of generating several thousand skilled and high paid jobs in the long term” has dwindled to almost nothing. Despite the recession and low-carbon economy policy, WAG at the CPO Inquiry in Janauary 2010 was still banking on expanding “aerospace” - a term covering military hardware – including exports from the likes of Raytheon and Qinetiq.
Information on latest WAG spending from a Freedom of Information Request 30th Sept
Perhaps WAG could stop wasting money -Total £5,306,772.81 - Spending on Consultants and companies on the gravy train!! Not including WAG staff costs etc.
St Athan Development Scheme *
Expenditure on External Advisers & Services - 1st April 2007 to 30th June 2010
Avionic Services , W.S. Atkins - Bay Associates - Capita - David Clements - Ecology -
Environment Agency - Enquinn Environmental - Enviros - Geldards - Halcrow - D & S -
Drivas Jonas - King Sturge - Bruton Knowles - Lewis & Lewis - MBP Marketing
- Mott Macdonald - MSS Consulting - OPUS - Parsons Brinckerhoff -
A. Porten - Production Support - Ramboll - Watts & Morgan - Welsh Water -
Western Power - White Young Green - Willdig Lamie - RG & RB Williams - 3Di
"Exclusive of Vat" Where Applicable.
* Aerospace Business Park & Defence Technical College Associated Assembly Government Costs
Question 3 In addition the same document talks of `in order to prepare and progress this Development Brief, a series of working groups has been established under a joint steering group consisting of Vale of Glamorgan officers, and representatives of WAG, Education and Learning Wales (ELWa), and Metrix. These Working Groups have been meeting regularly and have discussed planning, transportation, training, and quality of life issues in the context of the St Athan proposals.' Who are these representatives of WAG and who is paying them?
Response
These working groups were established during the early part of 2006 specifically to help with the preparation of the St Athan Development Brief and to support the case for St Athan as the location of choice for the MoD DTR programme. These working groups no longer exist.
Representatives of the Assembly Government who attended these working group meetings were either permanent senior officials from the relevant departments such as the Head of Transport or relevant officials from partner public agencies such as the WDA Project Director, WDA Head of Planning, WDA Project Manager, WDA Senior Roads Engineer, ELWA Head of Skills Development. These officials were paid by their respective employers, the Assembly Government, WDA or ELWA.
Some of these working groups included external professional advisers retained and paid by the Assembly Government to advise on master planning as outlined in Appendix 1.
Showing posts with label biggest pfi ever. Show all posts
Showing posts with label biggest pfi ever. Show all posts
25/09/2009
largest ever pfi approved
fROM THE TIMES
Defence companies push Government for contracts
http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article6848237.ece
David Robertson
The defence industry is pushing the Government to sign equipment contracts worth up to £20 billion in the next few months, in an attempt to prevent the projects becoming a victim of cost-cutting next year.
Industry insiders have told The Times that intense lobbying pressure is being brought to bear on the Ministry of Defence (MoD) in the hope of getting big deals signed quickly.
The companies are concerned that if equipment contracts are delayed, they will be caught up in potentially severe budget cuts after the election.
Even those projects that survive the cuts are likely to be swallowed up by the Strategic Defence Review, to which both Labour and the Conservatives are committed. This is likely to delay procurement by at least 18 months after the election.
RELATED LINKS
Will defence groups keep a united front?
BAE pays £346m to take over UK shipbuilding
Among the contracts that are nearing completion but could be under threat if delayed is the £5 billion Private Finance Initiative (PFI) to replace the country’s search-and-rescue helicopters. Two consortiums are bidding for the 30-year contract, with Lockheed Martin, BIH and VT Group offering a Eurocopter, while Thales UK, CHC and Royal Bank of Scotland are offering a Sikorsky.
“All companies try to get their projects through before a general election because of uncertainty about whether they will be backed by a new government,” a senior defence industry insider said. “This year it is even more critical. We all know there are big cuts coming and nobody wants a project they have spent years getting to the point of signing a contract cancelled at the last moment.”
There are at least eight large projects awaiting final clearance by the MoD, totalling nearly £20 billion in value. Defence analysts say it is highly unlikely that they will all be signed in the months before a May election.
The contracts that are near to being signed include the Defence Training Review, a £12 billion PFI which all army training will be centralised at one base in Wales.The contract has been awarded to a consortium that includes QinetiQ, the defence research company, but the final sign-off keeps slipping amid rumours that the MoD is unhappy about the price.
Howard Wheeldon, senior strategist at BGC Partners, a City brokerage firm, said: “There is not a single defence project that cannot be cancelled between now and the end of the defence review, so I can understand why the industry is pushing its case to get them signed as soon as possible.”
Other projects include a £2.7 billion contract for A400M military transport aircraft, which is due to be signed at the end of
this year. The Conservatives have already questioned whether this could be cut, but Lord Mandelson, the Business Secretary, is understood to have backed the A400M deal as it will protect Airbus jobs in the UK. This is, therefore, considered one of the few projects that is safe.
The Royal Navy is hoping to buy refuelling ships in a £2.5 billion deal, but analysts have speculated that the MoD may try to save money by cancelling this project and leasing ships instead.
Another deal likely to be signed is the Future Rapid Effects System (FRES), an armoured vehicle for the Army. The original plan was to buy 3,000 vehicles costing £12 billion, but the MoD is now hoping to have signed a contract by February for 600 costing £2 billion. This may result in a decision to axe a pending £900 million contract to upgrade the Warrior armoured vehicle, which FRES will eventually replace.
A spokesman for the MoD said: “We engage regularly with the defence industry ... but our priorities are led by the current and future requirements of the Armed Forces. Our top priority remains Afghanistan.
“We continue to invest in defence equipment to meet the needs of current operations and to provide the capabilities needed for the future.”
BAE seals shipyard deal
• BAE Systems, Europe’s largest defence company, took full control of what remains of Britain’s shipbuilding indu
stry yesterday with the acquisition of BVT.
VT Group, the former Vosper Thornycroft, sold its 45 per cent shareholding in BVT for £346 million, ending 150 years of shipbuilding heritage.
• BAE and VT merged their shipbuilding assets last year in a deal that created BVT. The partnership contains three shipyards: Scotstoun and Govan, on the Clyde in Glasgow, and Portsmouth.
• VT will inject £43 million into the business to reflect lower than expected revenue from an export order to Trinidad and Tobago. Negotiations over how much compensation VT should pay for the Trinidad contract held up the final sale for several months.
• VT will now concentrate on its growing support services business, which manages contracts in areas such as nuclear decommissioning, waste management and facilities management
http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article6848237.ece
David Robertson
The defence industry is pushing the Government to sign equipment contracts worth up to £20 billion in the next few months, in an attempt to prevent the projects becoming a victim of cost-cutting next year.
Industry insiders have told The Times that intense lobbying pressure is being brought to bear on the Ministry of Defence (MoD) in the hope of getting big deals signed quickly.
The companies are concerned that if equipment contracts are delayed, they will be caught up in potentially severe budget cuts after the election.
Even those projects that survive the cuts are likely to be swallowed up by the Strategic Defence Review, to which both Labour and the Conservatives are committed. This is likely to delay procurement by at least 18 months after the election.
RELATED LINKS
Will defence groups keep a united front?
BAE pays £346m to take over UK shipbuilding
Among the contracts that are nearing completion but could be under threat if delayed is the £5 billion Private Finance Initiative (PFI) to replace the country’s search-and-rescue helicopters. Two consortiums are bidding for the 30-year contract, with Lockheed Martin, BIH and VT Group offering a Eurocopter, while Thales UK, CHC and Royal Bank of Scotland are offering a Sikorsky.
“All companies try to get their projects through before a general election because of uncertainty about whether they will be backed by a new government,” a senior defence industry insider said. “This year it is even more critical. We all know there are big cuts coming and nobody wants a project they have spent years getting to the point of signing a contract cancelled at the last moment.”
There are at least eight large projects awaiting final clearance by the MoD, totalling nearly £20 billion in value. Defence analysts say it is highly unlikely that they will all be signed in the months before a May election.
The contracts that are near to being signed include the Defence Training Review, a £12 billion PFI which all army training will be centralised at one base in Wales.The contract has been awarded to a consortium that includes QinetiQ, the defence research company, but the final sign-off keeps slipping amid rumours that the MoD is unhappy about the price.
Howard Wheeldon, senior strategist at BGC Partners, a City brokerage firm, said: “There is not a single defence project that cannot be cancelled between now and the end of the defence review, so I can understand why the industry is pushing its case to get them signed as soon as possible.”
Other projects include a £2.7 billion contract for A400M military transport aircraft, which is due to be signed at the end of
this year. The Conservatives have already questioned whether this could be cut, but Lord Mandelson, the Business Secretary, is understood to have backed the A400M deal as it will protect Airbus jobs in the UK. This is, therefore, considered one of the few projects that is safe.
The Royal Navy is hoping to buy refuelling ships in a £2.5 billion deal, but analysts have speculated that the MoD may try to save money by cancelling this project and leasing ships instead.
Another deal likely to be signed is the Future Rapid Effects System (FRES), an armoured vehicle for the Army. The original plan was to buy 3,000 vehicles costing £12 billion, but the MoD is now hoping to have signed a contract by February for 600 costing £2 billion. This may result in a decision to axe a pending £900 million contract to upgrade the Warrior armoured vehicle, which FRES will eventually replace.
A spokesman for the MoD said: “We engage regularly with the defence industry ... but our priorities are led by the current and future requirements of the Armed Forces. Our top priority remains Afghanistan.
“We continue to invest in defence equipment to meet the needs of current operations and to provide the capabilities needed for the future.”
BAE seals shipyard deal
• BAE Systems, Europe’s largest defence company, took full control of what remains of Britain’s shipbuilding indu
stry yesterday with the acquisition of BVT.
VT Group, the former Vosper Thornycroft, sold its 45 per cent shareholding in BVT for £346 million, ending 150 years of shipbuilding heritage.
• BAE and VT merged their shipbuilding assets last year in a deal that created BVT. The partnership contains three shipyards: Scotstoun and Govan, on the Clyde in Glasgow, and Portsmouth.
• VT will inject £43 million into the business to reflect lower than expected revenue from an export order to Trinidad and Tobago. Negotiations over how much compensation VT should pay for the Trinidad contract held up the final sale for several months.
• VT will now concentrate on its growing support services business, which manages contracts in areas such as nuclear decommissioning, waste management and facilities management
| Largest-ever PFI 'approved' New Civil Engineer - London,England,UK ... Armed Forces in south Wales - known as the 'Defence Training Review' have been approved. The plans are to be funded under the largest-ever PFI deal. ... St Athan Defence Technical College plan approved by councillorsWalesOnline - - 2 hours ago THE £12bn project to build a Defence Technical College in South Wales was last night approved by planners. The scheme, which is the biggest single ... Defence academy plan is approvedBBC News - 5 hours ago Planning permission for a new defence training academy which will create thousands of jobs in the Vale of Glamorgan, has been granted. ... Fears over future of Girlguiding in South WalesWalesOnline - - Sep 24, 2009 GIRL Guides groups across South Wales are facing closure because of a shortage of volunteer leaders, the organisation has warned. ... St Athan project will put Wales on world map – where it belongsWalesOnline - Sep 23, 2009 TODAY, planning permission will be decided on the largest public sector project ever in Wales – the £13bn Defence Technical College (DTC) on the 1000-acre ... Green light for £13bn military academyBuilder and Engineer - 2 hours ago Plans to build a £13bn military academy in South Wales to train Armed Forces personnel have been given the go ahead. Construction work is due to begin at ... Vale of Glamorgan councillors back plans for £13 billion military ...24dash - 3 hours ago Plans for a major military academy to train Armed Forces personnel were given the go-ahead. Building work is expected to start at the former air base in St |
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