The Defence Industrial Strategy: update - 15 Feb 07
I think what you're looking for starts at paragraph 15. However, the committee's comments sum it up:
19. We are disappointed that the required restructuring of the surface ship industry has not taken place and that this has delayed the main investment decision on the Future Carriers. It is possible, though not inevitable, that this may result in later delivery of the carriers. This in turn may lead to a capability gap which could be both damaging to the defence of the country and expensive to deal with. On the other hand it might lead to the project being better managed. We accept that the MoD is right to insist on the speedy restructuring of industry, and we will be keeping a close eye on this important matter as it progresses.
20. In mid-January 2007 press reports suggested that the delay in making the main investment decision was because the Future Carrier programme was to be cancelled because of budgetary pressure on the Royal Navy. Lord Drayson was asked whether the Future Carrier programme would be cancelled. He said the rumours should be considered “quashed”. We were concerned to hear reports that the Future Carrier programme might have been cancelled because of budgetary pressures. The programme is a key element of the ‘Carrier Strike’ capability needed by our Armed Forces and vital to the future of the UK maritime sector. We welcome the assurance provided by the Minister for Defence Procurement of the Government’s continuing commitment to this programme.