UK proceeds with aircraft carrier programme

The British government is in the process of agreeing contracts for the construction of two new aircraft carriers, Prime Minister Gordon Brown said on Wednesday.

The government gave the go-ahead to the 4 billion pound ($7.97 billion) carrier project last July, but recent news reports have said the government could delay or stretch out the contracts for the carriers to save money.

Brown told a member of parliament who asked why the contracts had not yet been signed: "We are in the process of agreeing contracts to go ahead with them. I assure him it is our intention to go ahead with these contracts."

Work on the new 65,000-tonne carriers, which will be the largest ships ever to sail with the Royal Navy, will benefit "many shipyards around the country", Brown said.

British defence and support services company VT Group Plc said last week it was close to finalising a shipbuilding joint venture with BAE Systems Plc, a key step towards signing the contract for the new carriers.

The Ministry of Defence (MOD) dismissed as speculation last week reports that it was looking for savings of about 200 million pounds on the carrier programme over the next two years.

The carriers are to be called Queen Elizabeth and Prince of Wales and are due to enter service in 2014 and 2016.

Other companies involved in the project are Babcock International Plc and French firm Thales. France also plans to acquire a new carrier.

Source: Reuters

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