Non-Subscriber Extract
VT Group looks for commitment from UK MoD on CVF
16 May 2007
VT Group has released the details of its pending surface ships joint venture (JV) with BAE Systems, but stressed that "there will be no deal" without a commitment from the UK Ministry of Defence (MoD) to the Future Carrier (CVF) programme.
The statement comes after UK Defence Equipment and Support Minister Lord Drayson told a UK parliamentary defence committee in December that: "It would be quite right for the department [MoD] not to close the contract for CVF without this clarity. It is a precondition for signing."
Paul Lester, chief executive of VT Group, stressed that BAE Systems and his company - which together account for 85 per cent of UK naval shipbuilding - said that talks will continue with the UK MoD in an attempt to find a solution to the apparent impasse and to avoid delays to the CVF programme.
But he added: "This JV [regarding surface shipbuilding] is not a done deal. This will not go ahead without CVF. There really is no point without the carrier. We need a firm order."