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INTERVIEW-New British defence body slams carrier delay

Published 09/09/2009, 09:34 AM
Updated 09/09/2009, 09:36 AM
BAB
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* ADS CEO says aircraft carrier delay cost up to 1 bln stg

* Says Britain must set defence budget to match programmes

By John Bowker

LONDON, Sept 9 (Reuters) - Britain's new defence industry body has criticised the government for delaying a contract for two new aircraft carriers, saying the move had cost the taxpayer up to an estimated 1 billion pounds ($1.65 billion).

Rees Ward, chief executive of the newly formed Aerospace, Defence and Security (ADS) industry body, urged the government to balance its defence budget against preferred projects to avoid "inefficient" postponements.

"The aircraft carrier delay meant extra went into the cost ... I've heard various numbers from 600 million up to 1 billion. It's inefficient," Ward told Reuters in an interview.

"We are not asking for more money, we are asking for balanced budgets and programming," he added.

Britain has said it will launch a strategic review of its 30 billion pound a year defence budget next year, sparking concern in the industry that the annual spend will be cut back.

The government said in December it would delay a 4 billion pound contract for two Royal Navy aircraft carriers by up to two years to help it meet rising equipment bills and the cost of its involvement in Iraq and Afghanistan.

The decision was supported by shipbuilders, including BAE Systems and Babcock International, but Ward said the industry was demanding that in the future the government works out its priorities and budgets before setting programmes.

"The MoD can decide what it wants to do at international level, what it wants our armed forces to do ... which leads to what kind of equipment will be needed," Ward said.

Ward, a Rear Admiral formerly of the Ministry of Defence, was speaking on the sidelines of the Defence Systems & Equipment International (DSEI) exhibition in east London.

The biennial trade fair is attended by 1,350 companies, according to organisers. (Reporting by John Bowker; Editing by Rupert Winchester)

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