Letters

I see that Patricia de Lille has claimed in parliament that South Africa is paying "$17 million more than the market price for each of the Hawk jets from British Aerospace and R750m more for each of the German frigates" (Cape Times, June 22).

In doing so, she has demonstrated that neither she nor those who supply her with her information properly understand defence acquisitions, and that they have apparently not done any real homework.

There is no "market price" for an aircraft or a warship. The price of an aircraft will depend on the number of aircraft, the variant, the avionics, other systems, the training package, the support equipment (simulators, test benches and special tools), spares stocks, and whether the aircraft is to be built at the home factory or in the purchasing country. Every deal will be different. The same factors apply when buying warships.

It is not so different in civilian life. There is, for instance, no real "market price" for a 3-Series BMW. Depending on whether one buys a 318 or a 330, the price will vary between R206 000 and R360 000 before one even begins to talk extras.

That said, one can make rough comparisons, so I will do so here.

Hawk:

South Africa - $25.82m (24 aircraft)

Australia - $25.76m (33 aircraft)

Canada - $33.12m

(20 aircraft)

India - $20.30m (66 aircraft)

In each case I have divided a published cost of the overall acquisition package by the number of aircraft involved.

I really do not see where we can be paying "$17 million" too much per aircraft.

A200 Patrol Corvette:

South Africa - $946m for four 3 500-ton Meko A200 patrol corvettes

Malaysia - $735m for two 1 600-ton Lekiu class corvettes

Indonesia - $800m for two 1 700-ton Sigma class corvettes

Saudi Arabia - $3 000m for three La Fayette air defence frigates

India - $980m for one Improved Godavari class frigate

Again it is difficult to see where De Lille's "R750m more for each ship" (about $112m at the current rate of exchange) fits into the picture.

Of course, all of these ships are different and not directly comparable. The Saudi La Fayettes have a complex air defence radar and missile system and the Godavari has a much more comprehensive weapons suite. The Lekius and Sigmas, however, have comparable weapons and sensors.

The bottom line is that far from over-paying for its equipment, South Africa is getting its new equipment at good prices and in some cases at very good prices.

With acknowledgements to Helmoed Heitman and the Cape Times.