Question to the Ministry of Defence:

To ask the Secretary of State for Defence, pursuant to the Answer of 2 December to Question 98665 on AWACS: Procurement, what estimate his Department has made of the savings from the decision to reduce the number of E-7 Wedgetails purchased on the (a) whole life cost of the programme and (b) initial cost of purchasing the capability.

As a result of the decision to reduce the number of E7 Wedgetail aircraft, the Department expects to save around £350 million on initial acquisition and infrastructure costs. Further savings are expected to be realised throughout the programme as a result of reduced spares and support costs. There have been some foreign exchange rate cost increases in the overall programme that have offset some of these savings. As there are elements of the programme are not yet on contract, further details of expected savings from whole life costs are being withheld to avoid prejudicing the commercial interests of the Department.