back to article Navy pays 2x purchase price to keep warship docked for 5 years

A contract has been awarded to keep a Royal Navy warship stored and unready for sea in dock for five years. The amount to be paid is approximately double what the ship cost to purchase in the first place. HMS Victory on display in Portsmouth's Historic Dockyard 'Steal in measure,' quo' Brygandyne. 'There's measure in all …

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    1. Nick Ryan Silver badge
      Pint

      Beer

      A lot of that is down to increased taxes on alcohol, a lot of extra expenses in running a public house (paperwork, red tape, rates, insurance, etc) and the rises in minimum wage. Pretty much everything you could think of to try to kill off small / independent pubs.

      1. Local Group
        Pint

        apropos of alcohol

        this reminds me that England's greatest hero was brought back home in a barrel of brandy. My eyes well up when I consider it and I'm not even English.

    2. HipposRule
      Pint

      The pint I bought in South Wales in 1975 for 14p would now be 87p.....

  1. Tony S
    Unhappy

    Nothing new

    During the Napoleonic war, there was a brief period of ceased hostilities; the so-called Truce of Amiens. Almost before the ink was dry on the documents, the fleet was being mothballed, with over half of the ships being put into dock or in deep rivers. The crews were discharged and when hostilities resumed, there were less than a quarter of the ships capable of being worked out back to sea.

    I'm sure that someone in the MoD thinks that Victory is still seaworthy. Talking with a specialist a while ago, he told me that they replaced a lot of the wood some time ago. It's a type of hard wood, but when covered with the paint and tar, it suddenly becomes very soft, unlike the original timber. As a result, the ship will probably just collapse in a pile of dust one day soon.

  2. Anonymous Coward
    Anonymous Coward

    Cheap at twice the price

    If new first-rates could really be arranged at 8 million a pop we could almost afford enough to keep our surfeit of admirals distracted (with one each!) and stop them wasting much larger sums. It's a better plan for defence value-for-money than any of Lewis' and they might even turn out to have practical uses once the price of oil really starts to hit the ceiling.

    Preserving a 200 year old ship is much harder, to the point where this price seems fairly reasonable... and where exactly are you going to get another one of so much historical importance? Didn't know BAE were in the preservation business though. I suppose the MOD are incapable of purchasing from anyone else... bit like my company and a certain low quality IT outsourcer... see, there's an IT angle in everything if you try hard enough.

  3. Neil 44
    Headmaster

    Lost veteran ship

    Having been at the National Maritime Museum at the weekend I heard about HMS Implacable.

    Another ship that fought at Trafalgar (albeit on the French side from where she was captured at the battle of of Cape Ortegal), wasn't finally sunk (deliberately) by the Navy until 1949 because there wasn't the money to preserve her!

    1. Dave 15

      Naval stupidity

      As normal why sell a ship when you can wastefully blow her to pieces.

      Given the state of the modern 'navy' she would double the navy's useful strength - I can imagine Victory and Implacable sailing off into the sunset to defend Britain - at least they might stand a chance no heat signature and little metal for the enemy missiles to lock on to :)

      1. Peter2 Silver badge

        The fact she was 150 years old, rotten to the core (making breaking her up pointless, as you couldn't use the wood for anything) historically insignificant beside Victory even if restored and that the country was broke and couldn't afford to rebuild (not repair) her had something to do with the decision to scuttle her.

  4. OffBeatMammal

    why is Military spending running amok?

    Why, in a world where everyone is having to tighten their belts are military suppliers able to charge an endlessly increasing premium for what often turn out to be failed or faulty services and supplies?

    They seem to be the only ones who benefit from the atmosphere of fear that justifies the inception of many of these projects or initiatives... yet by the time they are delivered the solution is outdated and inappropriate so the cycle begins again

    It appears that there are too many big consolidated suppliers and with no patriots (no matter what flag) looking beyond the next bonus cycle holding the military (and us) hostage with the threat of a bogeyman (who they also supply)

    1. Anonymous Coward
      Anonymous Coward

      Be Fair ..

      .. fronting that whole conspiracy theory about a few dozen (before we invaded Iraq and got their recruitment drive going) Al Quaeda nutters being about to end the world cost a few bucks and it's not like the military/intel boys could do ALL by themselves ..

  5. This post has been deleted by its author

  6. Tel Starr
    Thumb Down

    Victory not cheap

    Using interest to determine costs in the 'aircraft carrier' comparison is a bit lame as it does not take into account actual fiscal resources available.

    Try government expenditure as per http://www.ukpublicspending.co.uk

    HMS Victory (1865)

    £63k out of a defense budget of £6mil (total gov spend £12mil) = ~1% (.5%)

    HMS White Elephant + HMS Back Hander (2010 figures)

    £7bn for 2, out of def budget £43bn (gov spend £660bn) = ~8% (.5%) per ship

    When you spead the costs out over design\build time then the difference closes even further.

  7. gooeygooeyworms
    Joke

    handful of aircraft?

    I admit my hands aren't that big but yours must be huge!

  8. Chuckl

    Between the guided missile destroyers and frigates with no missiles, and aircraft carriers with no aircraft, it's probably our main front line defences at this stage.

    Probably quite useful against Somali pirates, too.

    1. Peter2 Silver badge

      To be honest, if the somali's saw her then they'd probably assume she's some kind of massive pleasure yaught and try and go for her, like they did for one of the French navies auxiliary ships.

      Hmm. Not actually such a stupid idea. How about we compromise and send Warrior instead? We could be assured that she's wouldn't fall apart on the way over and frankly she probably has all of the capabilities that are actually required for the job in her original spec. Not to mention I think she's probably actually better protected against RPG's than our current front line warships.

  9. Anonymous Coward
    Anonymous Coward

    BAe Working on RN Stealth Warship

    Given the construction of Victory, any bets on her Radar profile being better than the new stealthy warships?

  10. Peter2 Silver badge

    Lewis!

    You missed the chance to repeat the old defense complaint that Victories original great repair was completed late and over budget. When she was only 32 she was old and about to be disposed of, when another First rate was wrecked and a survey revealed she could be repaired and put back into service for £23,500 (a third of the cost of a new ship) in a few months.

    three and a half years and £70,933 later (more than a brand new first rate to a better design would have cost) her refit was completed and she sedately set out to harass the kings enemies. She has frankly been something of a pain in the ass to keep in reasonable condition for at least the past 220 years. . .

  11. Anonymous Coward
    Anonymous Coward

    Did the Victory ...

    ... have a steam-catapult?

    That's not cordage, no sir, those are arresting-wires.

  12. I ain't Spartacus Gold badge

    Joining the bandwagon

    I normally agree with you Lewis, about the massive waste of cash that is defence procurements. Though, as your quote from Pepys attests, 'twas ever thus...

    I think your inflation and fleet size calculation was utterly ridiculous though. When Victory was built, Britain had an empire, in which slavery was still legal (and rather profitable too). These kind of warships also tended to last a bloody long time, it was quite possible for a ship to be in active service for a century (with the odd refit and period of being laid up). Crewing them wasn't all that expensive either, especially when you could dock their (terrible) pay to cover food, uniforms and the like.

    Back then, if you earned £1,000 a year, you were able to employ large numbers of servants and live the life of the idle rich. Obviously one didn't earn ones money, that was far too common. One had land, or maybe investments...

    Comparisons are tricky things, it was a different world. For example, the going rate for 100,000 troops to fight Napoleon was only £1m per year. That was the British subsidy to anyone who'd fight the French. We even (sort of) borrowed Portugal for £7m a year. The Royal Family buggered off to Brasil, we put a British officer in charge of the army, and sort of used it as a giant depot.

    If you call it £1,000 = £1m in today's money, then you're probably not too far from the mark. In which case I reckon we could build HMS Victory now for well under £50 million. Even at BAe prices... If you were trolling, then I think you failed, due to re-use of your favourite hobby-horse.

    Didn't someone find a flat-pack first-rater at Chatham a few years ago? All the pieces are numbered, so we could always put that one back together. Should be more useful than one of the Type 45 Destroyers at the moment. As someone above has said, it would also be very funny to surprise the Somali pirates.

  13. Eduard Coli
    Childcatcher

    It's the New Economy

    Pres. Eisenhower had a few things to say about this kind of thing during his farewell address in 1961.

    <snip> "This conjunction of an immense military establishment and a large arms industry is new in the American experience. . . .Yet we must not fail to comprehend its grave implications. . . . In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist."

    1. JimmyPage Silver badge
      Stop

      Eisenhower also said ....

      Every gun that is made, every warship launched, every rocket fired signifies, in the final sense, a theft from those who hunger and are not fed, those who are cold and not clothed. This world in arms is not spending money alone. It is spending the sweat of its laborers, the genius of its scientists, the hopes of its children. This is not a way of life at all in any true sense. Under the cloud of threatening war, it is humanity hanging from a cross of iron

  14. Anonymous Coward
    Happy

    Time for a complete suck-up to Lewis!!

    It's time to put the HMS Victory out to sea again!! Why?

    1) It's deck is large enough to handle Britain's fixed-wing naval aviation for the next 10 years!

    2) It's more heavily armed than that type 45 destroyer that Lewis loves to rant about!!

    3) Wind-powered--in line with current government environmental policies and tre green!!

    4) You know it can put a wupping on the French and Spanish navies!

  15. Anonymous Coward
    Anonymous Coward

    Gypsies?

    Why not get some friendly travellers to do it for considerably less?

    I had one knock on my door once who luckily noticed my chimney stack was about to collapse, causing my entire house to fall down. Thankfully, he noticed this by chance as he just happened to be passing with his team, a van and all the materials they needed to fix the structural damage immediately, saving my house in the process!

    Initially, he wanted £5000 for the work, but when I said I really couldn't afford it, he managed to bring down the cost to £150 within 4 steps.

    So, what I was thinking was, why not get the same craftsmen to restore the Victory? I'm sure they'll do it for at least under a grand.

  16. Andus McCoatover
    Windows

    Thinking about it...

    If you had a couple of jobseeking 'hoodies' with chainsaws to clear all that clutter off the top, polish the deck a bit, then we'd find a place to put some of those useless Harriers, before the US gets 'em.

    Propulsion? More Jobcentre work-experience hoodies, with long oars. Even better if we could get another who can rhythmically bang a tom-tom, to keep the other ne'er-do-wells in sync.

    The Welsh would never know what hit 'em.

    Simples.

  17. Matt Hawkins
    Joke

    Joke?

    Is this story a joke? So BAE is getting paid to look after a ship. Do you expect them to do it for free?

    Maybe we should throw it away and give the money to the US instead. Doesn't matter what we get in return, as long as it keeps Lewis happy.

    Comparing the maintenance cost of Victory to its original purchase cost is the most hilarious attempt I have ever seen to imply BAE is fleecing the tax payer. Why not just write an article saying BAE eats babies and be done with it.

  18. Homer 1
    Pirate

    Should've gone to Stan's Used Ship Emporium

    He'd have looked after it for only 5,000 pieces of eight.

  19. Anonymous Coward
    Anonymous Coward

    If they Launch it now...

    it might be operationally ready to see off the Argies when they invade the falklands... Again!

    next year.

    with any luck they can man it with the ConDemned

    who should go down with it when its Torpedoed and sent to the bottom with all hands....

  20. ElReg!comments!Pierre
    Coat

    So, tell us then!

    Which American vessel should be bought to replace her?

    1. Local Group
      Joke

      That's easy

      The Disney Fantasy or the Disney Dream would be superb choices.

  21. Anonymous Coward
    Anonymous Coward

    trumped up costs

    At B&Q a good quality wood preserver can be had for £9.99 . Obviously you would need a few more cans but you should have change of £5000 easy. Team of 5 painters at £80 a day on top of that .

  22. Cihatari

    Manpower requirements?

    The other thing which might be worth mentioning are the manpower requirements to operate one of these things. A figure of 8-900 crew members is not untypical.

    If we're to successfully recreate the Nelsonian Royal Navy in its full glory, including all the frigates, sloops and other smaller ships supporting the battle line, we're going to need some blummin' amazing incentives based around rum, sodomy and the lash for recruitment purposes, as the current RN personnel numbers won't nearly cover it.

    Alternatively, press gangs lurking around the nation's job centres might be an interesting thought?

  23. Anonymous Coward
    Anonymous Coward

    Comeback

    With the ConDem salami slicing it won't be long before the venerable old lady is called back into service to combat piracy off the Horn of Africa.

  24. Magnus_Pym
    Thumb Up

    Raise Gov' funds old style

    Privatise the navy and send them out to beat the pirates at their own game. They can haul the booty back to Blighty for a chance at a knighthood, position in government or stately home out in the sticks. Governerships of small countries might also be up for grabs. Might even be able to lease out the mothballed ships for extended tours of the Horn of Africa, South China seas, etc. I hear there are high value cargoes traversing the Gulf of Mexico these days.

    If it takes off we might be able get the Victory earning it's keep again. More than a match for a cross channel ferry I'll wager.

    That's how they did it in the old days. No reason it won't work today

    1. Peter2 Silver badge

      Actually, that's not such a stupid idea. It has been done before.

      When the navy disposed of ships (especially captured foreign warships not meeting RN standards) they were just sold to private bidders, many of whom just obtained a letter of marque and reprisal and went for the enemies shipping.

      There were privateers fitted out specifically to go for pirates. The problem is that we aren't allowed to do that anymore because of the treaty of Paris of 1856. The difference between privateers and pirates at heart is simply having permission from a nation state, and out and out pirates could easily get a letter of marque from *somebody* so they couldn't simply be hung when caught. Hence, privateers were banned, and the navy continued to catch and hang pirates were simply hung until piracy died.

  25. Mr. Chuck
    Pirate

    View from the colonies

    Several interesting aspects to this.

    1. Who else tendered for the contract, and for how much?

    2. How does it compare to past maintenance contracts/annual costs?

    3. Why does Lewis hate BAe so very much?

    As with many media articles, this piece raises more questions than it answers.

    As for the other comments about the modern Royal Navy, well, you chaps have about as much as you need and can afford these days don't you?

  26. trottel
    Go

    Keep her!

    This is one of my childhood dreams - one day walk on the deck of that ship and imagine that i am Hornblower fighting that crazy little guy in the movie...

    No money is too much to for that. :)

    1. Local Group
      Thumb Up

      What a snake!

      Good Heavens. If El Supremo had whooped Hornblower, millions of little English school children never would have sung this song:

      "Rule, Britannia! rule the waves:

      "Britons never will be slaves."

  27. Boris the Cockroach Silver badge
    Flame

    The shame

    is that the work on HMS Victory used to be done by the dockyard apprentices in their final year of training(supervised by someone who knows what their are doing of course)

    Only cost was the price of the materials

    Now look at us.... getting damned BAE to do the work for even more taxpayers money.

    They really should be doing it free seeing as they rake in billions from the government every year anyway.

  28. Anonymous Coward
    Anonymous Coward

    BAE = Billions Above Estimate

    This gentle mockery is intended to help, not hurt.

  29. Scopes
    FAIL

    Just couldn't resist it.

    Bloody hell, I know you were a fish-head Lewis, but is there any danger of you ever writing anything about the Navy without having yet another tenuous pop at the crabs?

    Let it go man.

  30. unitron

    You'll never guess the name of the contractor

    Having immediately interpreted "Navy pays..." from my other side of the Atlantic perspective, I had a post planned that would have gone...

    You'll never guess the name of the contractor

    Richard Burton?

    Tim Burton?

    Burton Cummings?

    I'm sure there must be a burton in there somewhere.

    1. Andus McCoatover
      Windows

      Hmm.. Took a second..

      Ah, yep. "Gone for a Burton" in the no. 1 hall...

  31. Anonymous Coward
    Anonymous Coward

    Only eight million?

    Sounds like a bargain deal. Now you know why the navy're no longer sailing wood. Too cheap.

  32. The Fuzzy Wotnot
    Facepalm

    Nothing's changed I see!

    "when half the company would have done it as well. But I see it is impossible for the King to have things done as cheap as other men."

    Yep, just replace the word "King" with any company name you like!

  33. Jean Le PHARMACIEN
    Coat

    as Pepys would have observed....

    If you take the time to read his diaries [I have] you will be depressed to note that defence procurement seems to be in as great a disarray as it was in the 1660's. Pepys spent much of his time warding off corrupt procurement [probity being his preserve in his own account] of Navy supplies; observing incompetent [Royalist] captains being placed on ships above competent proven captains from the Roundhead regime and general unreadiness of the Navy for fighting off the Dutch in the mouth of the Thames.

    plus ca change

  34. Kubla Cant

    BAE Systems

    If BAE Systems are handling this work, it presumably means they have extensive expertise working with oak, canvas, hemp, Stockholm tar etc. This is mildly surprising.

    1. Andus McCoatover
      Windows

      Stockholm tar?

      I think the tar for the ship would have come from my city, Oulu. There's still a working tarpit here, mainly for tourists, but....

      http://www.youtube.com/watch?v=cmcKRxAG9PU

      and

      http://www.youtube.com/watch?v=OnTh-CcExvE&NR=1&feature=endscreen

  35. Steven Jones

    Relative cost...

    I'm dubious over the validity of using measurements of the value of currency over time in calculating relative costs. Given that the vast majority of our current GDP comprises products, technologies and services that either did not exist in 1765, or would be so altered as to be completely unrecognisable, it's not a great measure of the real cost of something like HMS Victory to either the exchequer, or the country as a whole. Also, the country has a vastly higher (inflation corrected) GDP these days.

    A much better way of looking at HMS Victory's cost is to take it as a proportion of the country's GDP, total State Expenditure and defence budget. According to the estimates at http://www.ukpublicspending.co.uk/index.php?year=1765, UK GDP was £89.4m in 1765 with £12m state expenditure of which defence was £6.1m. For those that care for such things, the national debt, at £133m, was considerably higher as a proportion of GDP than it is today.

    The £63,176 capital cost was equivalent to a little over 1% of one year's defence budget, just over 0.5% of one year's state expenditure and approximately 0.07% of a year's GDP.

    Current estimates are that a single one of the new carriers will cost approximately £6.2bn (although nobody really believes that will be the final figure). Taking this as a proportion of 2010's GDP, public expenditure and defence budget (£1,453bn, £660,6bn and £43.2bn respectively) this places one carrier at approximately 14.3% of the defence budget, 0.9% of state expenditure and 4.3% of GDP.

    Whatever way you look at it (inflation adjusted, %GDP, %State spending or %defence budget), these new carriers look like expensive naval toys. Even in terms of the country's total output, they are something like 60x more expensive than HMS Victory. I suspect that Victory's 0.07% of GDP might get you a submarine or three frigates.

    Of course the headline is nonsense - £16m is just 0.001% of the GDP, so in terms of national affordability, that 5 year maintenance figure is about 1/70th of the initial capital cost.

  36. Anonymous Coward
    Anonymous Coward

    Napoleonic quote ...

    On competence in the armed forces ...

    When Wellington saw a list of generals available to fight at Waterloo, he said ..

    "I can only hope the enemy trembles as much as I when they see this list ...."

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