Harrier Aircraft

Defence written question – answered on 19th January 2012.

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Photo of Madeleine Moon Madeleine Moon Labour, Bridgend

To ask the Secretary of State for Defence

(1) what costs his Department incurred in respect of (a) legal, (b) consultancy and (c) currency brokerage costs associated with (i) the sale of the Harrier aircraft to the US and (ii) the retirement of the fleet; and if he will make a statement;

(2) whether his Department is likely to incur any costs or receive any further invoices from the retirement of the Harrier fleet and sale of 72 aircraft to the US; and if he will make a statement;

(3) whether payment for the 72 Harrier aircraft being sold to the US Marine Corps has been received in full; whether payment is being made in cash or in kind; and if he will make a statement;

(4) what revenue has accrued to his Department from the sale of Harrier aircraft spares and other associated support equipment; and if he will make a statement.

Photo of Peter Luff Peter Luff The Parliamentary Under-Secretary of State for Defence

No external legal or currency brokerage costs were incurred by the Ministry of Defence (MOD) for the retirement of the Harrier fleet or for the sale to the US Government. The external consultancy costs for these two activities were £0.7 million and £0.4 million respectively. We do not expect to incur any further costs relating to the retirement and sale to the US Government of the Harrier fleet.

The value of the sale is $180 million (around £110 million). This figure includes 72 Harrier airframes, spares and associated support equipment. The MOD will receive monetary payment from the US Government for the full value of the Harrier sale before 1 April 2012. Overall £1 billion will be saved from removing the Harrier from service. We continue to operate Tornado, Typhoon and, in the future, JSF.

As agreed with HM Treasury as part of the spending review process, the revenue from the sale of Harrier assets will be retained by the Ministry of Defence and reinvested by the Department in key priorities as part of the Defence Budget.

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