This article by Reuters suggests that the United Kingdom and Brazil are about to sign a defence agreement.
The Financial Times is also reporting this potentially significant export order.
The Financial Times is also reporting this potentially significant export order.
The articles state that Brazil may buy 6 patrol boats and 5 or 6 Type 26 frigates.
While this is very good news for the British defence industry,if it is true (there was recent talk of Brazil buying Italian frigates),it also tells us something about the Royal Navy's future Type 26 frigates.
The contract is said to be for up to £2,900 Million of ships.
Of these,the 6 patrol boats are expected to cost £60 to £80 Million each.
This means the frigates will cost between £2,540 Million and £2,420 Million.
This gives us a potential price range of between £508 Million and £403 Million for the Type 26 frigate.
Which would seem to confirm the figure of £400 Million each which has been mentioned previously in connection with the Type 26.
The benefits of a longer production run and this reasonable price bodes well for the future of the Royal Navy's frigate programme.
Indeed,£400 Million is just over one third of a Type 45's programme unit cost and just two thirds of the Type 45's production unit cost.
At that price the Royal Navy could have had 16 Type 26 frigates for the cost of 6 Type 45 destroyers.
That Brazil would consider buying these warships before they have even left the drawing board suggests the Royal Navy may have got things very right with the Type 26.
While many British defence procurements cause significant damage to the United Kingdom's economy and at the same time undermine the country's political independence,the Type 26 export order will be of considerable economic benefit and help to sustain the independence of action of the British armed forces,without which they have no reason to exist.
It is politicians who ultimately decide how much money is spent on defence and programmes like this which create jobs and tax revenues are far more likely to generate support than,for example,the decision to buy Chinook helicopters from America rather than Merlins from England.
We shall have to wait for this to be confirmed,and to find out the details but the only potential downside to this is the possibility that those 5 or 6 frigates have been axed from the Royal Navy's future fleet as part of the forthcoming defence cuts.
In which case it could be very bad news indeed.
Nevertheless,we should never forget that it is defence exports such as this which subsidise the massive drain on the public purse which is the British armed forces.
Nevertheless,we should never forget that it is defence exports such as this which subsidise the massive drain on the public purse which is the British armed forces.
