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16/09/2010
'Astonishing' Failure For MoD
The purchase of a new £10.5bn fleet of tankers and transport aircraft by the Ministry of Defence (MoD) has been criticised as an "astonishing failure".
It has been reported by MPs on the influential Public Accounts Committee (PAC) that the MoD agreed to sign up to the deal even though it had no idea whether it was getting value for money.
Despite the vast cost, the aircraft is not equipped to fly on missions in Afghanistan, the PAC report states. To supply sufficient protection for combat zones would cost the taxpayer hundreds of millions more.
The deal was struck as a Private Finance Initiative (PFI), which means a private company covers the initial cost and is then reimbursed by the taxpayer over time with an added premium.
Margaret Hodge, Committee chair commented: "It is simply astonishing that it took until 2006 to recognise that the new aircraft should be able to fly into high-threat environments like Afghanistan.
"Four years later, (the MoD) has still not decided whether to fit the necessary protective equipment... because of the implications this would have for the cost of the PFI."
This comes amid growing rows over the cost of the UK's nuclear capability.
(BMcN)
It has been reported by MPs on the influential Public Accounts Committee (PAC) that the MoD agreed to sign up to the deal even though it had no idea whether it was getting value for money.
Despite the vast cost, the aircraft is not equipped to fly on missions in Afghanistan, the PAC report states. To supply sufficient protection for combat zones would cost the taxpayer hundreds of millions more.
The deal was struck as a Private Finance Initiative (PFI), which means a private company covers the initial cost and is then reimbursed by the taxpayer over time with an added premium.
Margaret Hodge, Committee chair commented: "It is simply astonishing that it took until 2006 to recognise that the new aircraft should be able to fly into high-threat environments like Afghanistan.
"Four years later, (the MoD) has still not decided whether to fit the necessary protective equipment... because of the implications this would have for the cost of the PFI."
This comes amid growing rows over the cost of the UK's nuclear capability.
(BMcN)
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