Unfortunately BWoS, amongst other companies (Thales, Ultra etc), WILL receive significant contract cancellation payments, together with disposal costs.
The £2.3 Billion figure over 10 years (£0.3B outstanding plus approximately £200M per annum) is correct but when you apply the expected £1 Billion cost of cancellation, the net cost for the first five years ((5 x £200M)-£1,000,000,000)) is zero due to the penalties incurred.
I accept that the following five years will cost approximately £1 Billion but I guarantee that £2.3 Billion (Net) will not be saved and a further (approx) £1 Billion will be wasted, creating a grand total of 4.6 Billion pound of wasted tax-payers' money.
Last edited by Donna K Babbs; 28th Nov 2010 at 12:15.
Reason: Replacing zeros for words