Select Committee on Defence Second Report



Inquiries into departmental actions

Defence Procurement

15. Defence procurement makes up at least one-third of all defence expenditure. With the introduction of annual defence equipment debates in 1998, our predecessors put their monitoring of equipment issues on a more systematic basis. They initiated annual inquiries, based on a survey of major procurement projects. Their aim was to monitor, and report progress on, a selection of the operationally more significant procurement programmes in a way that could measure the success of the smart procurement initiative, which would measure the implementation of projects which were keystones of the SDR strategy, and which could inform the House's annual defence equipment debate. We have undertaken to continue this exercise, and produced our first Report on Major Procurement Projects in July 2002.[16]

16. Our report focussed on warship procurement strategies, including their implications for constructing the Type-45 destroyer and Future Carrier; the Warship Support Modernisation Initiative; the use of PFIs for acquiring particular equipment capabilities; and the Sea Harrier's withdrawal from service. We also examined ammunition security of supply and the BVRAAM and A400M programmes in the course of the inquiry. The Government's reply to our Report, while positive in a number of respects, failed to address all of our concerns about the use of the Private Finance Initiative in areas in which it might impinge on operational effectiveness and the risk of diminishing security of supply.[17]

Strategic Export Controls

17. We continued our collaboration with the Foreign Affairs, International Development and Trade and Industry Committees into strategic export controls, and produced a joint report with those committees in July on the Government's Annual Report for 2000 on Strategic Export Controls, export licensing policy, including the passage through Parliament of the Export Control Bill, and prior parliamentary scrutiny of export licence applications.[18] We intend to continue this work together with the other select committees to consider issues which go beyond narrow Departmental responsibilities.

Afghanistan

18. In April, on the invitation of the Minister for the Armed Forces, Members of the Committee visited Afghanistan, where we were briefed by the Commander and Chief of Staff of the International Security and Assistance Force (ISAF) on HM forces' leading role in the force, on the security situation in Kabul and on the political and security situation in Afghanistan more generally. We also called on the Brigade Support Group, medical officers, engineers, one of the regiments on the ground, and the detachment at Kabul airport.

Inquiries into associated public bodies

19. The MoD has numerous associated public bodies. In the course of 2002, we took evidence from the following:

Month

Associated Public Body

Subject

January

Ministry of Defence Police

Defence and Security in the UK

April

Defence Procurement Agency

Warship Support Agency


Major Procurement Projects

December

Army Training and Recruitment Agency

Army Training and Recruitment Agency

December

Defence Logistics Organisation

SDR: New Chapter

December

Veterans Agency

'Legacy' pension and compensation issues

20. We also visited the Atomic Weapons Establishment at Aldermaston in January as part of our inquiry into Defence and Security in the UK, and we visited the Army Base Repair Organisation in November.

Inquiries into major appointments

21. We took evidence in May from Air Marshal Sir Jock Stirrup, shortly after his appointment as Deputy Chief of the Defence Staff (Equipment Capability),[19] and in December from Air Chief Marshal Sir Malcolm Pledger, shortly after his appointment as Chief of Defence Logistics[20]—although neither evidence session was specifically intended as a 'confirmation hearing'.

Inquiries into the implementation of legislation and major policy initiatives

22. These activities have been covered under previous headings.

Examination of any draft legislation

23. Defence legislation is comparatively rare, and no primary legislation was before Parliament in 2002. We intend to take evidence on the Arms Control and Disarmament (Inspections) Bill currently before Parliament in the very near future, and hope to have the opportunity to examine a draft Civil Contingencies Bill in 2003.

Examination of expenditure

24. Our inquiry into Major Procurement Projects is discussed above.

25. Following the 2002 Spending Review, it was announced that the MoD's annual resource budget was to rise by some £3.5 billion between 2002-03 and 2005-06, with the annual capital budget rising by more than £1 billion over the same period.[21] As it was not absolutely clear how this new money was to be spent, we made initial inquiries of MoD officials on this matter in evidence on the New Chapter to the Strategic Defence Review.[22]

Examination of Public Service Agreements

26. The previous Committee had investigated two areas in which, by the MoD's own admission, its Public Service Agreements had not been met.[23] As part of our inquiry into the SDR New Chapter, we examined MoD officials on further progress on one of these: the introduction of the Joint Rapid Reaction Force.[24]

Extent to which systematic structure is in place for meeting the indicative tasks listed, and response of department

27. Because of the extent to which its work was dominated by the consequences of the events of 11 September 2001, the Committee did not attempt to establish a systematic structure for its work based on the Liaison Committee core tasks.

28. To cope with our heavy workload in the opening months of 2002, we devised a three-streamed work programme, involving working through three informal sub-groups for visits within the UK and informal meetings, but with all Members expected to attend weekly formal meetings. We decided against using our power to appoint a formal sub-committee. In the course of our inquiry into Defence and Security in the UK we took evidence in private on a number of occasions, and also used informal meetings as a way of informing ourselves on matters which could not be discussed publicly. A full list of informal meetings held by the Committee during 2002 is published at Annex A.[25]

29. We made extensive use of specialist advisors during 2002, taking advice from 20 experts in the course of the year. We are grateful to all of them for their help. A list of the inquiries on which we sought specialist advice, and of those who assisted us, is published at Annex B.[26]

30. Co-operation with the Ministry of Defence has generally been good, in terms of the provision of informative memoranda and Government responses to schedule, and in terms of the availability of ministerial witnesses. In accordance with the Resolution of the House of 14 May 2002, we have taken evidence from each of the four Ministers in the MoD during the course of 2002. We have asked the MoD how they intend to respond to the duties imposed on them by the Liaison Committee Core Tasks, but we have not so far received a reply.


16  Fourth Report, Session 2001-02 (HC 779). Back

17  Sixth Special Report, Session 2001-02 (HC 1229). Back

18  Fifth Report from the Committee, Session 2001-02, Strategic Export Controls: Annual Report for 2000, Licensing Policy and Prior Parliamentary Scrutiny (HC 718). Back

19  Minutes of Evidence taken on 1 May 2002, HC 779 (2001-02), QQ 156-286. Back

20  HC 93-ii (2002-03). Back

21  HM Treasury, 2002 Spending Review: New Public Spending Plans 2003­2006, pp. 95-96. Back

22  HC 1232-i (2001-02). Back

23  Eighth Report from the Committee, Session 2000-01, The MOD's Annual Reporting Cycle 2000-01 (HC 144), paragraphs 30-33. Back

24  HC 1232-i (2001-02). Back

25  Printed at p. 12. Back

26  Printed at p. 14. Back


 
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