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Defence Procurement

It is not often that I am happy to have words put into my mouth, especially by Members on the other side of the House, but the hon. Gentleman is absolutely correct. Some of our NATO partners have to understand that being in an alliance means having to do the things that they do not want to do, as well as doing the things that they do want to do. In Afghanistan in particular, the heroic efforts of the Canadians and the Danes, and to a certain extent the Dutch, alongside ourselves and the United States, are an example to the other members of NATO. Security is not optional. If they want to enjoy global security, there is a price to be paid. I have criticised the MOD's management of the defence budget , but it should not shoulder the entire blame. The just-in-time approach to procurement is entirely Treasury led. The Minister and I have served on opposite sides on a Finance Bill and we both know exactly how the Treasury operates in the United Kingdom. The Treasury approach has resulted in an increasingly difficult procurement environment. Given the strategic uncertainty and constantly evolving operational environment, it is extremely important that we give personnel the flexibility of equipment choices to enable them to perform their tasks successfully. Despite Treasury resistance, UORs have proved vital, which is why I believe that Members on both sides of the House will find it extremely disappointing that Defence News last month stated that"““industry sources say that Treasury officials appear to be tightening up the approval process and seeking to ensure that only truly urgently needed equipment is obtained from UORs.””" Indeed, sources say that Treasury officials might suspect that not everything ordered via UOR was really urgent. I would be grateful if the Minister, in winding up the debate, dealt with this question; it is a fundamental issue, not simply a theoretical one. The hon. Member for Norwich, North (Dr. Gibson), who is no longer in his place, made an important point about the need for better parliamentary scrutiny of major procurement programmes. That need not impede the MOD; in fact, it could eventually help to reduce cost and time overruns. We in the House of Commons simply do not have sufficient access to the details of equipment programmes and do not know how projects will fit into the defence budget in the years ahead. It is difficult not only for MPs but for the military to judge the Government's plans sufficiently. The Prime Minister says that he wants new politics, so perhaps the Minister will assure Parliament that Members will have a chance to look at the 10-year funding forecast for major procurement projects. For example, in the years of the comprehensive spending review and beyond, we would like to see how much is allocated in each year for spending on aircraft carriers, the future rapid effect system, the replacement of the nuclear deterrent or the defence training review. Unless we know that, we can make no sense of whether the Government's proposed allocations are realistic or simply a wish list. The House operates in the dark, which other elected assemblies simply would not accept. Although we have welcomed the carrier announcement, a number of concerns and unresolved issues remain. The in-service dates are now 2014 and 2016 and the cost will be £3.9 billion, but in which years will the costs be borne? Will the Minister update us on contract negotiations? Some progress has been made with FRES, but medium-weight armoured vehicle procurement has been badly handled, and we should be much further ahead than we are. Nine years after the Government announced their intention to procure new vehicles, we have not completely reached main gate, which is unacceptable. As the Defence Committee said:"““This is a sorry story of indecision, constantly changing requirements and delay. We are concerned that the FRES requirement may simply be unachievable without a major technical breakthrough. The tension between the survivability and deployability is particularly acute. Satisfying both requirements may prove impossible. It is high time the MoD decided where its priorities lay””." Despite that, we still get procrastination. Similarly, with the replacement of our nuclear deterrent and the defence training review, we need to know where the potential costs will manifest themselves in the actual budget; otherwise we can make no sense of any of the Minister's promises today. The fact that our procurement process too often produces long delays and budgetary overruns is hardly a bone of contention. The consequences are that we often pay too much for things that are almost out of date by the time we get them. That makes no sense. It provides neither value for money for the taxpayer, nor a predictable equipment flow for the armed forces. However, it would be churlish not to acknowledge the efforts made to improve the situation, not least by the noble Lord Drayson. Whatever its merits, the defence industrial strategy needs to be refined further. We need a more rigorous assessment of what constitutes sovereign capability and whether we are willing fully to support it through our economic and procurement policies. At the same time, we need to be frank about where we are beginning projects that are either duplicating work undertaken elsewhere or are unlikely ever to come to fruition. Better project management is essential to achieving better value for money. We must also recognise that if we want British defence jobs to be protected—and they are a vital part of our economy, as well as an essential part of our defence infrastructures—we need to expand British defence exports. We intend to begin a consultation with our defence industries to see how a future Conservative Government might best achieve that. Stronger exports are, in the longer term, the best way to create entrepreneurship in the defence sector and secure defence jobs. That will be taken up by my Front-Bench colleague in his wind-up speech. The Minister and I have already exchanged views on it. All these issues may sound technical, which probably explains the lack of attendance in the House today, but what might sound technical in the comfort of the House of Commons is of vital importance to the safety and well-being of our armed forces personnel and the adequate protection of our country. The difference between success and failure in any project often lies in the detail. There is no inherent reason why there should be a difference between the parties on that issue, but the House of Commons must be given a greater role because too many of the Government's failures are having a negative impact on our armed forces and our ability properly to defend our country's interests, which is simply unacceptable.