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The Minister of State, Ministry of Defence (Mr. Adam Ingram): I am pleased to announce that the Ministry of Defence has today signed a contract with National Air Traffic Services (En Route) plc for approximately £725 million to provide an en route air traffic control facility to the Ministry of Defence until 2021. This contract enables military personnel to work alongside National Air Traffic Services (En Route) plc staff to manage air traffic within UK airspace.
The existing contract with National Air Traffic Services (En Route) plc expires in July. I am pleased to confirm that National Air Traffic Services (En Route) plc will continue to provide this facility for the next 15 years.
The signing of this new contract reflects the continued commitment of the Government to an integrated military-civilian approach to en-route air traffic control services. Such an approach, with military personnel working alongside National Air Traffic Services (En Route) plc staff, works to the benefit of all airspace users. This is a world leading concept and offers both operational and cost benefits to Defence.
The Minister of State, Ministry of Defence (Mr. Adam Ingram): I am pleased to announce that the following three companies have been chosen to compete for the role of Integrator for the Military Afloat Reach and Sustainability (MARS) programme:
MARS will form an essential part of the UK's Versatile Maritime Force, providing a suite of vessels to supply UK and allied vessels with fuel, food, ordnance and other support they need to sustain operations. MARS will also introduce a new capability, providing joint sea-based logistics for those operations where Host Nation Support is absent or limited or where we would wish to reduce our footprint ashore.
The MARS vessels, will have some military features, while being technically similar to specialist merchant ships. We therefore want the build of the MARS ships to harness the efficiency of specialist commercial shipbuilding practice. As indicated in the Defence Industrial Strategy, we expect the competition for the shipbuilding element of this project to be wide-ranging.
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UK yards and other suppliers will be given every opportunity to compete for this shipbuilding work and should see it as both a challenge and an opportunity to demonstrate world-class performance. With the high planned workload on CVF and Type 45, the complex warship design and integration capabilities that we intend to sustain in the UK will remain healthy for some years.
The Integrator's key role will be to use their expertise in engineering project management and supply chain relationships to drive good project management and partnering practice into a delivery team consisting of the MOD, the Integrator, and key suppliers. The selected Integrator will also help MOD identify the shipbuilders and other key suppliers, and develop the right partnering approach to ensure successful delivery of the MARS programme.
The shortlisting of potential Integrators marks a significant step forward for this project. The companies will now work with the Ministry of Defence to provide evidence of their suitability to be the MARS Integrator.
The MARS project, along with the future aircraft carriers, Type 45 destroyers and Astute submarines, forms part of the largest procurement programme of new ships for many years, reinforcing our firm commitment to provide UK Armed Forces with the enhanced naval capabilities needed to face the threats of the 21st Century.
The Deputy Prime Minister (Mr. John Prescott): Subject to Parliamentary approval of any necessary Supplementary Estimate, the Office of the Deputy Prime Minister's Departmental Expenditure Limits for 200506 will change as follows:
(1) The Office of the Deputy Prime Minister's Main Programmes DEL will be increased by £42,327,000 from £9,468,500,000 to £9,510,827,000 and the administration costs limit will also be increased by £454,000 from £335,358,000 to £335,812,000. Within the DEL change, the impact on resources and capital are as set out in the following table:
£1,513,000 to the Department for Constitutional Affairs comprising of £262,000 for electoral work and £1,251,000 to cover resources for the Boundary Commission arising from the Machinery of Government change in May 2005.
an increase in receipts of £91,429,000 offsetting increases in provision of £570,000 for Research; £500,000 for Planning Inspectorate; £9,000 for New Horizon programme; £40,000 for Green Flags programme; £250,000 for Ex-Housing Revenue Accounts Repayment; £2,681,000 for New Dimension; £96,000 for Firelink; £80,000 for Fire Services; £231,000 for administration costs; £853,000 for expenditure incurred on the Boundary Commission; £3,266,000 for Government Offices; £62,419,000 for non voted English Partnerships from land sales ; £21,234,000 for European Regional Development Fund and a reduction of £800,000 in receipts comprising of £700,000 for Fire Services and £100,000 for non voted Housing Corporation.
a transfer of £60,827,000 from resource to capital comprising £1,500,000 for Growth Areas; £1,200,000 for Thames Gateway; £1,291,000 for Homelessness; £286,000 for Private Housing Renewal; £1,350,000 for non-voted Housing Corporation and £55,200,000 for non voted English Partnerships.
an increase in receipts of £25,580,000 offsetting increases in provision of £2,328,000 for New Dimension (comprising of £1,147,000 from Northern Ireland; £1,033,000 from Scotland and £148,000 from Staffordshire ); £22,930,000 for European Regional Fund and £322,000 for the Emergency Fire Service in respect of Green Goddesses.
a transfer of £60,827,000 to capital from resource comprising £1,500,000 for Growth Areas; £1,200,000 for Thames Gateway; £1,291,000 for Homelessness; £286,000 for National Register of Social Housing; £1,350,000 for non-voted Housing Corporation and £55,200,000 for non voted English Partnerships.
The Office of the Deputy Prime Minister's Local Government DEL will be increased by £2,441,000 from £46,678,171,000 to £46,680,612,000. Within the DEL change, the impact on resources and capital are as set out in the following table:
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