Al Yamamah 2

Cheering news for BAe shareholders as the Saudis sign up to what is becoming known as Al Yamamah 2. All we need is Euan turningup to sell the concrete forthe runways and we’ve got a close copy of the first time round.

However, is it actually a good deal for us?

Mr Reid said: "BAE Systems, as prime contractor, and its many UK sub-contractors will benefit from the work envisaged under this understanding, which will help sustain several thousand UK jobs over the next 10 years.

"In addition, the associated technology transfer, training and inward investment packages will generate many skilled jobs in Saudi Arabia."

The Saudis are understood to have agreed to buy 48 Typhoon fighters in the initial stages, rising to as many as 72 jets over 10 years. The deal secures 10,000 jobs which rely directly or indirectly on BAE's Eurofighter plant near Preston, Lancashire. Another 4,000 Rolls-Royce jobs were secured because its EJ200 engine is used in the jet.

Appears to be, doesn’t it?

Ah, but, what have we the taxpayers put into the program?  According to the BBC:

The bill for Britain's order of 232 aircraft to replace the RAF's Tornado F3 and Jaguar has risen over the years from £7bn ($10bn) to £15.9bn ($22.7bn).

Which is, I’m afraid, a figure I do not believe. If the Saudis are getting 72 planes for $20 billion then our 232 are going to cost a lot more than $22.7 now aren’t they?

But it is an illustration of how big business gets its snout in the tax money trough all the same. We the taxpayers pay through the nose to develop, at much greater expense than simply buying from the Americans, a plane. When some foreigners buy the plane it’s the shareholders, not the taxpayers, who get the bunce.

It’s not just the Real Nappy Officers sponging off the taxpayers folks!