Sunday, 25 March 2012

Government plans U-turn on aircraft carriers as catapult costs spiral


guardian.co.uk,


Philip Hammond, the defence secretary, has recommended a U-turn on one of the most controversial proposals of the cost-cutting armed forces reforms, the Guardian has learned.

David Cameron will decide this week whether to agree to an embarrassing about-face involving the Royal Navy's over-budget aircraft carriers, which are under construction.

In the strategic defence and security review (SDSR), the prime minister insisted the carriers would have to be converted to include "cats and traps" to allow a version of the new Joint Strike Fighter (JSF) to be catapulted from the decks and caught by arrestor wires on landing. But the Guardian has been told the cost of the modification has spiralled out of control, to between £1.9 and £2bn.

With the "carrier variant" version of the JSF also beset by technical problems, the MoD has concluded the carrier programme could be delayed by at least another seven years – to 2027 – unless it abandons the plan.

Though he knows the U-turn will be humiliating for the coalition, Cameron has been told the best option is to switch back to another version of the JSF, which was ruled out in the review because it was likely to cost more and do less.

Having mocked Labour for earlier taking the "wrong" decision, the government will be taunted by the shadow cabinet if Cameron accepts the judgment of military chiefs that the MoD's losses should be cut now before costs balloon again.

"There will be short-term pain for the government, but in the long run, it is by far the best option," said a Whitehall source. "Adapting the carriers is skewing the defence budget out of shape, and there is every likelihood the costs will continue to rise. It has to be Cameron's decision, but the military advice is clear."

Hammond's sensitivity on the subject is acute; he has demanded a vow of silence from all senior MoD civil servants, who have been told not to speak to the media about any military equipment programmes without his authority before the budget for next year is approved.

A U-turn would be humiliating for Cameron and his deputy, Nick Clegg, who both signed off the SDSR. They were withering about Labour's decision to commit to the F-35B version of the JSF, an aircraft that could take off and land in a similar way to a Harrier jump jet.

Instead, they argued for the F-35C, saying it was the better aircraft and equipping the carriers with the accompanying catapults would make it possible for French and American aircraft to land on them too.

"The last government committed to carriers that would have been unable to work properly with our closest military allies," the document said.

"It will take time to rectify this error but we are determined to do so. We will fit a catapult to the operational carrier to enable it to fly a version of the JSF with a longer range and able to carry more weapons. Crucially, that will allow our carrier to operate in tandem with the US and French navies."

The SDSR also claimed the carrier version of the JSF would be cheaper in the long run, reducing "through-life costs by around 25%".

However, the National Audit Office expressed deep concern about the cost of fitting catapults. This expense contributed to the government's decision to deploy only one of the two carriers being built, with the second being put at "extended readiness" – in effect, mothballed.

If Downing Street sanctions the U-turn, it may try to blame the former defence secretary, Liam Fox, who championed the decision in the SDSR in September 2010.

The MoD hopes the savings from abandoning catapults could allow the second Queen Elizabeth class carrier to be put to proper use after all, sources said. However, that is not without its problems. One of the two is being fitted to take helicopters.

Jim Murphy, Labour's shadow defence secretary, said the government appeared to be in disarray. "This would be one of the biggest public procurement messes for many decades. David Cameron has potentially wasted more than a year and squandered millions. A combination of prime ministerial hubris and MoD incompetence has led to British military power being degraded."

Admiral Lord West, a former first sea lord and security minister, said: "I am slightly amazed at the costs of adapting the carriers, but if they are of that order then you can understand why they are considering this change.

"You have to make the best of a bad job. The navy wanted the capability of the carrier version of the JSF, but the other version is still a good aircraft. And if the navy gets a second carrier operational, then some good will have come of it."

An MoD spokesman said no decisions had been taken.

"We are currently finalising the 2012-13 budget and balancing the equipment plan. As part of this process we are reviewing all programmes, including elements of the carrier strike programme, to validate costs and ensure risks are properly managed. The defence secretary expects to announce the outcome of this process to parliament before Easter."
A senior defence source added: "Jim Murphy's comments are irresponsible and opportunist. It ill behoves him to talk about mismanagement of projects. Labour left a carrier programme that had ballooned in costs and made it more expensive to cancel the programme than to go ahead with it."

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