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Mr. Soames: The armed forces pension scheme already provides a pension for eligible widows of former service men at half the rate of their late husbands'. This provision was introduced in 1973. Prior to that date, service widows' pensions were assessed at one third of the late husband's pension. The total cost of bringing all widows' pensions in issue at present up to the half rate would be around £27 million per year. In common with other public service occupational schemes, a widow's pension ceases on remarriage. There is, however, discretion to restore the original pension if the subsequent marriage has come to an end and the widow is financially worse off as a result. We estimate that the annual cost of continuing to pay pensions to service widows who remarry would be around £5 million.

Airwork Ltd.

Mr. Morgan: To ask the Secretary of State for Defence what change there has been in the probationary status of Airwork Ltd. with respect to bids and tenders for aircraft maintenance work located at RAF St. Athan and its listing as a defence contractor requiring special attention; and if he will make a statement.      [18419]

Mr. Freeman: As a result of a breach of contract by Airwork, the contract was terminated by the Department in May 1993. Subsequently, BAe Warton was contracted to repair the aircraft and a claim for damages is being pursued against Bricom, parent company of Airwork at the time of the breach.

In November 1993 Airwork's business was acquired by Shorts Brothers, although liability for breach of contract remains with Bricom under the conditions of sale. As a result of the breach Airwork Ltd. was placed on the CRSA list--contractors requiring special

attention--meaning that they were considered to be significantly in breach of their contractual requirements, that their response in the form of corrective actions was being formally monitored and that consideration would be given to the implications for existing contracts and for new contract proposals.

The support services division of Shorts Brothers Plc, formerly Airwork, is included on the CRSA list. Listed companies will not automatically be disqualified from bidding for MOD work; each case is treated on its merits. The essential criterion is the relationship between the cause of the breach and the work for which the company wishes to be considered.

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