Tuesday, June 30, 2009

Carrier cost overrun

Perhaps not the most surprising news story of the year, the new aircraft carriers have added £1bn to their cost.

Digging a little deeper it seems to be the extended delivery time and the need to keep fixed costs running for longer is the cause. It is a lot of money though, in a time when every department is being asked to cut back.

I do not doubt that they will be built, but I feel sorry for the places that will see the cost cutting - presumably places in the military that could do with not losing funding.

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