I work for BAE SYSTEMS in glasgow and would like to where the information about the type 45 ,£1 billion cost overun and 2 year delay comes from as the workforce has been led to beleive all time target and budget requirements have been met. I am refering to the article by david robertson (31/3/08)

alan logan, glasgow,

BAE, the wider defence industry and the MoD ARE learning the lessons from both successful contracts and also from some contracts that have overrun. Rather than look at past shortcomings, as the Defence Select Committee appears to be doing, we should be looking at what industry and MoD are doing about continuously improving performance of the entire Defence industry not just MoD and the Primes. The consequences of not doing this could mean the offshoring of UK industry and the loss of critical skills required to be self-sustaining. The next time we come to build facilities such a Nuclear Power Plants and Major Naval vessels we may find that we no longer have the skills or capability to do this and therefore have to rely on countries such as the US and France to provide.

In response to this there are a number of initiatives that are implemented by industry, and endoresed by MoD, it these that the Government should be supporting to ensure better performance to support UK Industry.

David Sternbach, Cambridge, UK

The MOD do not understand what they fully want, they shrink down on every element on cost then blame the Contractors such as BAE. All BAE wants to do is make money else they would not have a business and hence alot less jobs or no jobs for the UK. Contracts with the MOD are never simple they believe they can cut stuff out and do it themselves which then they never deliver but cause contractors to slip, the MOD need to learn how to run a business or do what they should do allow the contractors to help support true cost realisation and for the MOD to truly deliver the correct level off service to the Country and men on the front line,

If the MOD continues to screw down costs the only people they are affecting are our soldiers on the frontline.

Kat, Hampshire,

Surely if the VAT cost to the MOD is the only reason for not awarding to a different contractor, Gordon Brown should simply take the VAT and add it to the MOD budget.

H, High Wycombe, UK

Richard Branson is probably the only Brit with the proven management skills to bring this in on time and under budget. The rest of UK senior management and politicians have been proven over and again to be utterly useless, yes, totally useless.

Bob, Carlsbad, California, USA

If you take the Nimrod Contract and apply 4%pa, which is roughly RPI, over the 6 year delay then the answer is approx £3.5bn so the gripe should be not the price increase but the delay. 6 years is a ridiculas delay and it would be more news worthy to know why the delay has occurred - I suspect changing specification by the MOD but the answer seems to be a secret

Stead, London, England

Peter from Stoke,

One of the main reasons the Nimrod and Astute projects overran on cost is that the customer (MoD) changed the technical requirements and caused massive design change work. Therefore BAE charged accordingly.

.... As well as BAE being a lot sharper than the Government!

Neil, Portsmouth, G.B

Surely it is time to throw away our current MOD equipment procurement system in it's entirety. We have purchased second rate ships and other equipment for as long as I can remember (I served 38 years in the RN) at vastly over inflated prices. During my service, I visited many ships of other nations and was often amazed at how well built and well armed they were compared to the more expensive RN equivalent. All around the world, we were 'outgunned' by 3rd world navies who had purchased weapons 'off the shelf' from the USA or wherever. We cannot conceive, design, contract for and build cost effectively using indiginous MOD / British companies and obtain value for money. It is now time to bite the bullet and simply purchase from other nations who can do it so much better than us.

Master & Commander, Sarlat , France

Doesn't the MOD enough funding problems that they must resort to such contractual contortions to avoid taxes?

Jiimy, Chicago, Il

Paying tax is obviously a smokescreen. The MoD pays the treasury, and the treasury puts the money back to MoD. So what? Sounds like the budget is already over the top.

Mike, Sydney,

What every happened too tenders.
Once awarded, you stuck to the order, if over run you paid penalties, not the tax payer, was I sleeping when the rules where changed....!

Peter, Stoke, UK

How can the MoD, part of the Crown, "avoid" paying tax to the Crown?

It would be in effect avoiding paying tax to itself - a net zero transaction.

It would seem that the MoD and the Treasury have totally lost the plot, yet again.

At BAE its Chateau Petrus for elevenses until Whitsuntide 2012.

nigel foster, ryde, uk

Yet again, chuffing BAE getting all our money, boats will be ten years late and double the cost....do i need to say any more

Aaron, Bath,