UK-Defence
The Ministry of Defence (MoD) Thursday signed Pnds 3 billion (Dlrs 6 bn) contracts with industry to proceed with the building of two super aircraft carriers, despite concern about the impact of their costs on the UK's overstretched defence budget.
The contracts were signed with the newly-formed UK maritime Joint Venture, BVT Surface Fleet, and the Aircraft Carrier Alliance onboard HMS Ark Royal, one of the Royal Navy's existing aircraft carriers and currently the Fleet Flagship, the ministry said.
Defence Secretary, Des Browne, described it as a "historic day" and said the two aircraft carriers, the biggest to be built in the UK, will "provide our forces with the world-class capabilities they will need over the coming decades."
"Today's contract signing seals the future for thousands of jobs, and ensures that we will have a Royal Navy fit for the 21st century," Browne also said.
Head of the navy, Admiral Sir Jonathon Band said the future aircraft carriers, to be named HMS Queen Elizabeth and and HMS Prince of Wales, "will provide the UK with a potent and powerful aircraft carrier force that will deliver air power in support of the full range of future operations at sea, in the air and on land."
The carriers are due to enter service in 2014 and 2016 respectively and are expected to remain part of Britain's fleet for at least thirty years.
The MoD was reported in May to have been forced to free funds to address its defence budget shortfall, estimated to be almost Pnds 2 bn to give the go-ahead for carriers and provide life-saving kit for troops in Afghanistan and Iraq.
The freeing of the funds comes after the Defence Select Committee reported in March that the combined costs of Britain's military operations in Afghanistan and Iraq are expected to have almost doubled during 2007/08, despite the reduction of troops in Basra.
Britain's defence budget, the fifth highest in the world has risen by nearly Pnds 12 bn to Pnds 33.5 bn since Labour first came to power in 1997.
By far the biggest annual increase came in the lead up to the Iraq war, when it jumped by Pnds 5.7 bn to Pnds 29.3 bn in 2002/03 from Pnds 23.6 bn in 2001/02.
