Press Release
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29 January 2008 |
BAE blunders cost UK taxpayers over £2 billion
The arms company BAE Systems is so far over budget with two of its latest projects that they will cost UK taxpayers £2.2 billion more than expected. The figure is revealed in a report by the House of Commons Defence Select Committee, which looks at BAE's contracts with the Ministry of Defence. The Committee found that the budget for BAE's Astute Submarines has increased by 47% and the budget for BAE's Type 45 Destroyer ships by 18%.
Symon Hill, spokesperson for Campaign Against Arms Trade (CAAT), said:
"This is outrageous. BAE has once again been exposed as a drain on taxpayers' money. This waste is on top of the roughly £850 million spent every year on subsidies for the arms trade. BAE is a burden, not a benefit, for the British economy."
The news comes only weeks ahead of a High Court case in which the Government's relationship with BAE will come under scrutiny. On 14th and 15th February, lawyers for CAAT and The Corner House will argue that the Government behaved illegally in cutting short a Serious Fraud Office investigation into BAE's Saudi arms deals.
ENDS
Notes
1. Campaign Against Arms Trade (CAAT) works for the reduction and ultimate abolition of the international arms trade.
2. BAE is building four Astute Submarines for the Ministry of Defence (MoD), which were expected to cost £2.578 billion. The current forecast is £3.798 billion. BAE is also providing the MoD with six Type 45 Destroyer ships, expected to cost £5.475 billion but now forecast to cost £6.464 billion. These figures are contained in a report by the House of Commons Defence Select Committee.
3. In December 2006, the Government and the Serious Fraud Office cut short a corruption investigation into BAE's arms deals with the regime of Saudi Arabia. CAAT and The Corner House, an environmental and social justice NGO, have received permission to pursue a judicial review of this decision. From 14th-15th February, the High Court will consider if the Government behaved illegally by suspending the investigation.
4. Spokespeople for CAAT are available for interview.
Media Contact
Symon Hill
020 7281 0297 or 07990 673 232
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