Des Browne (Secretary of State, Ministry of Defence; Kilmarnock & Loudoun, Labour)

I can announce that the contract for full production of 12 Nimrod MRA4 aircraft has been placed with BAE Systems. This is the culmination of many years of hard work by BAE Systems and its supply chain, and builds upon the considerable investment already made by the Ministry of Defence and BAE Systems. Nimrod MRA4 has had a troubled and well publicised history of time delays and cost overruns. The contract restructuring introduced since early 2003 has been successful in stabilising costs and, with three aircraft participating in the flight trials programme, the design has now reached a level of maturity which permits a commitment to full production.

The greater transparency offered by the revised contracting arrangements and the development of an effective partnering relationship between MOD and BAE Systems and its supply chain have been essential to restoring confidence in the programme. These are key elements of the Defence Industrial Strategy (DIS) and progress on Nimrod MRA4 demonstrates the benefits that will accrue to MOD and industry as these and other features of the DIS are put into effect across the defence industrial base.

The programme will provide the RAF with a maritime patrol aircraft capability second to none. Nimrod MRA4 will offer greater capability and improved availability when compared with the current MR2 maritime patrol aircraft which it replaces.

This contract will secure some 1,000 jobs at BAE Systems sites in the north-west of England, including around 700 at the Woodford site where the aircraft is manufactured. A further 300 or so jobs associated with production will also be secured at other BAE Systems sites.