7. TODD McCLAY (National—Rotorua) to the Minister of Defence: What progress has been made with Project Protector?

Hon Dr WAYNE MAPP (Minister of Defence) : We have now taken delivery of the first of the two offshore patrol vessels, the Otago. The delivery of the second, the Wellington, will take place in April. This completes the delivery of the Project Protector fleet, and it will be a substantial addition to the Navy. I might note that the programme has been bedevilled by delay and dispute, largely because the Labour Government chose a one-off solution with the Canterbury, which has led to a very large repair bill.

Todd McClay: What progress is being made with the rectification of the defects of the Canterbury?

Hon Dr WAYNE MAPP: We have now settled the dispute over the defects of the Canterbury with BAE Systems, by way of mediation. BAE Systems has paid $84.6 million to the Crown, based on current exchange rates. I might note that Labour spent years talking about the problems but never actually got around to solving them. In contrast, we had to initiate a legal process, which has resulted in a very good outcome, and it will enable a comprehensive rectification of the defects of the Canterbury.