...there is of course the counter argument that one is money out of the
country and the other is money that returns in taxes. That of course was the
money saving driver on the F4, C130 and E3 deals where offset orders of British
kit was installed.
The problem with new British kit is that you arrange a price with the manufacturer - the MOD bean counter agrees the price then you find that you have to pay UK VAT on it (depending upon whether it is replacement or new capability). The treasury grumbles and there is a delay for a year while government departments argue about getting extra money that will be paid straight back into the same acount. I am sure that there are people more expert than I who know the applicable rules, but it is really frustrating when all seems arranged then this extra stumbling block of interpretation of the rules explodes in your face.