Sorry, I'm a bit confused. T31's 2B GBP is contracted, but most of them are not payed yet. I understand the payment will happen within coming 10 years. On average, 200M GBP per year (of course, not flat).Ron5 wrote:Or to build a new hospital or service the national debt. The Treasury does not promise or commit the 10 year money to the MoD. Money is allocated on an annual basis and the amount can be modified within the year. Nothing to do with honesty. All the Treasury can do is say that what their expectations are and whether the MoD spending aspersions are compatible with them.donald_of_tokyo wrote:tem-2 means, the money may go to F35B, E-7, P-8 or even Fort Austin up-keep. No one know. As I understand, treasury and MOD has an agreed "equipment budget for 10 years". Treasury is always honest here, so they will provide that money.
MOD need to pay for it until 2030 or more. And every year, it must be included in the Defence Budget. As you know, Defence budget has some cap (virtually), and as much as MOD pays for T31 in coming decade, it is eating up the budget allocated for equipment.
Every year, MOD fights against "hospital or service the national debt". It is not related to T31 contract.
If the MOD money dries out, partly because of T31 cost in a certain year, Treasury can just say, "it is WITHIN your own budget. HMG is already paying promised 2% GDP for defense. Handle it at your own risk.". And what happen is, RN slowing down other (or T31) procurement, cutting operation costs, keeping ships in extended readiness, and cutting manpower.
On this regard, I say, "the 2B GBP is eating up the MOD equipment budget".
Not sure. This is the first time ever Babcock designs a escort. Detailed design includes all the process, manual, documentation, parts list, inspection, verifying standard by reviews, many many. It is not easy to "foresee" the whole work, in a company who's CEO was saying "Will be surprise if these ships cannot be build in 1.25B GBP"No I do not think so. The cost increases are more likely to occur during build due to unexpected delays, well after the design phases.donald_of_tokyo wrote:Item-3, I agree. But, there is a big chance AFTER the detailed design phase.
But, I agree right after building starts, there might be another cost rise. It will also deeply depend on how much the "detail design" is well written. Again, not high hope. I agree to you here.
?? Your argument other than the last line is I totally agree. But the last line is not clear for me. T31 money is allocated and HAS STOLEN 0.5B GBP from the estimated budget. This is what I mean.Sorry to be unclear but I meant to state that the famous "black hole" of the Equipment Plan is NOT a negative gap between committed spending and budget because there isn't one. Instead it is a negative gap between uncommitted spending (or desired spending), and budget. In other words, the Type 31 money is allocated and doesn't have to be stolen from anyone else.