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I am delighted to be here today in HMS Sutherland at the start of the Schroders London Boat Show. It is important that the Royal Navy is seen at such major maritime shows and particularly this year, which includes maritime events to mark SeaBritain 2005 and the bicentenary of the Battle of Trafalgar. The Royal Navy will be one of the major players in the Government-supported SeaBritain 2005 initiative and will be marking appropriately the 200th anniversary of Trafalgar and the death of our great national hero Admiral Lord Nelson.

The Royal Navy operates in a fast changing and uncertain world in which an ability to adapt rapidly is central to ensuring we remain both capable and resilient. We must ensure that we are a modern and relevant force capable of sustained deployments and with the ability to respond rapidly and effectively to crises whenever and wherever required. Working increasingly closely alongside the Army and the RAF, we may be called upon to operate as part of a coalition or to lead other nations in a coalition and we must also maintain the ability to counter any likely threat both at home and abroad. So what does this mean for the Royal Navy? The Royal Navy's future expeditionary force structure will be based upon striking power from aircraft carriers, amphibious capability and a nuclear submarine force. The Navy's central role in the United Kingdom's foreign and security policy means that the size and shape of the fleet must continually evolve to meet new challenges. The Royal Navy must also operate as cost-effectively as possible and this philosophy is reflected in the design of the next generation of ships which will have smaller crews but will exploit innovative technological solutions, including greater computer automation, to ensure they are highly capable and versatile vessels. Our people are key to our future success and the Royal Navy remains committed to being a top class employer with top class people. Concurrent with the development of the new generation of equipment we are working to ensure that our people are equipped with the skills they need to meet the challenges of the future. We are entering a new and exciting new era. A number of new ships have recently entered service with the Royal Navy and exciting developments lie on the horizon. Together, delivery of these vessels will ensure that the Royal Navy has one of the most modern fleets in the world.