Select Committee on Defence Minutes of Evidence


Examination of Witnesses (Questions 280-299)

25 MAY 2004

LORD BACH, SIR PETER SPENCER AND LIEUTENANT GENERAL ROB FULTON

  Q280 Mr Hancock: I hope that is borne out by your optimism for getting this sorted fairly quickly, Sir Peter. If I can then go on to what we are going to put on the aircraft carriers and the recent suggestions that the UK and US Marine Corps STOVL variant of the Joint Striker Fighter is going to be difficult for us to manage on the carriers and what we are intending to do with it. The suggestion is that the Marine Corp are expecting now to see their in-service date for these aircraft is going to drop by some two years or more so it will be further and further back. Where are we?

  Sir Peter Spencer: I think it would be appropriate for General Fulton to lead on the requirement on this both in terms of the performance and the in-service date.

  Lt General Fulton: In terms of the performance, we remain where we have been all along, we have selected the STOVL variant as that which best suits our requirement, and that remains the case. Clearly, if you are referring to the newspaper articles about weight, we are keenly interested in that. I was over with the company hearing what they had to say about it last week. They are optimistic, as one would expect them to be, about their ability at this stage of the programme to make sure that the aircraft will perform to its specification. Clearly if it does not then we have a series of decisions that we will have to take but those are decisions to be taken when we get to the point at which this aircraft will not do it but at the moment with the effort that is being expended, and the company are in no doubt as to the importance of getting the weight right, for their own sake, as much as for ours or the United States Marine Corp, then we will continue down the path we are on.

  Q281 Mr Hancock: Were you surprised by the situation that arose?

  Lt General Fulton: On weight?

  Q282 Mr Hancock: Yes?

  Lt General Fulton: I am not an engineer, I am told by those people closest to the problem, the IPT leader, that he has been closely monitoring this all the way through and for this type of aircraft weight is a perennial problem. It is a balance between the weight of the aircraft, the thrust of the engine and the aerodynamic drag of the aircraft so this is not a simple engineering problem. The IPT leader is very closely involved, as you would expect, from our level one participation in the programme as the only level one participants.

  Q283 Mr Hancock: If that was the case and we were on top of it all along, one would assume the US Marine Corps were on top of it all the way along but they are now envisaging the problem they are experiencing over the weight is going to delay the in-service date of their aircraft by at least three years. That does not lead me to believe that they were on top of the problem from day one because otherwise they would not have started with a date two years prior to where they now envisage it to be. Are you saying, General, that we were so on top of the in-service date for our variant of this plane it will still be on time, we will not slip?

  Lt General Fulton: I am not saying that, I am saying at the moment we do not know until the programme formally tells us whether they are able to solve the problem and by when—and this is part of the de-risking that goes on at this stage of the programme as we have just discussed—and we will sign the manufacturing contract at the time at which we know what the proposition is, ie what the cost, what the time and what the performance is. The United States Marine Corps have been very closely involved in the programme, just as close if not more closely involved in the programme as we have because clearly it is their national programme.

  Q284 Mr Hancock: It would be right to assume that if they are now realistically accepting that the delays will account for probably two years, we would have to make the same assumption?

  Sir Peter Spencer: Not necessarily.

  Q285 Mr Hancock: Not necessarily. Okay.

  Sir Peter Spencer: Because we will ideally slipstream them by two to three years. As the General said, we have to make a judgment because if the programme base line for STOVL is reset then we may choose to bring our aircraft with the same variant into service at around the same timescale. Previously it was considered to be good risk mitigation not to be amongst the early users, let somebody else sort out the problems. There is then a judgment to be made, when we have got the facts, as to what the trade-offs are going to be. Another thing, which we will clearly want to look at, is that depending upon which production batch you take your aircraft from, how early on in the production lifecycle it is and how many of them are in the batch, it will impact on the price. We will then go back to the person who has the budget and say "Do you want them early at this price, on time at this price or slightly later at this price?" We are at the stage where we can only speculate at the moment. Meanwhile, as General Rob has said, there is an enormous concentration of technological expertise tackling this problem. 6.30 tomorrow morning I set off for Heathrow to fly to the States for the routine meeting of chief executive officers where all of this problem will be laid out in front of me and my American and other international counterparts, and including the chief executive officers from the major companies such as BAE Systems as well as Lockheed who are involved. We will then have some better understanding of what progress has been made.

  Q286 Mr Hancock: If the weight problem cannot be resolved, what does that then do for the design and construction of the carriers?

  Lord Bach: I think we hope and expect that it will be solved.

  Q287 Mr Hancock: This is not a very good example, is it, Minister, of smart procurement?

  Sir Peter Spencer: On the contrary, it is a fairly good example of smart procurement.

  Q288 Mr Hancock: To buy a plane where you are not sure about the weight.

  Sir Peter Spencer: We have not yet bought the plane. We have bought into a programme which has high risks and uncertainties, has benefited from a huge amount of de-risking in the earlier phases including the manufacture and competitive comparison of prototypes. Although it is easy for us to get concerned about the remaining risk, we should not just ignore the huge amount which has been de-risked in advance, part of which we helped to fund when we first joined the programme when it was in its technology demonstration phase. What we are doing is Smart, it is Smart procurement not to commit yourself to a production buy before you know what the prices are going to be.

  Q289 Mr Hancock: Sir Peter, I have read up a lot about the aircraft and its potential, we were given a lot of information when we were in the United States the time before last. The weight issue was not an issue, it was never raised by us and certainly it has not been raised in any of the things I have read until fairly recently about this aircraft. We accepted that this was the variant we wanted, it does the job, but if you are going to reduce it by the sort of weight that is now being suggested, the 3,300 pounds of weight, that has to be got rid of somewhere, what does that do to degrade the product that we wanted? Is the product then the same one? Does it have the same capabilities? Does it have the same air frame capability to take the weight of weaponry we would expect it to have?

  Lord Bach: Could I say, as the General just said, it is not a question of peeling off the weight. There will be a need to tackle the weight problem in some key areas and there are some good solutions to that but we have to make sure we understand the problem. Secondly there are options, also, to up the power of the engine and there are options also to improve the aerodynamics. As General Rob said, it is not just a question of you take all that weight away but you are right to have a concern as to what impact it has had on the performance and we are watching that very closely. The way in which that performance will reflect back into us will not really be properly understood until we have a better understanding of to what extent these three prongs of attack on the problem are going to deliver a solution.

  Q290 Mr Hancock: That solution will have an impact surely on design and construction of the carriers.

  Lord Bach: Not necessarily.

  Q291 Mr Hancock: We were led to believe that there was a link between the way in which the carrier would be designed and its capability for the sort of aircraft that were going to operate on it.

  Lord Bach: Yes.

  Q292 Mr Hancock: If you are saying you get the aircraft down to what we originally specified it would have to be then the carrier design is as it is. I am suggesting if the variant changes does that change the design and, if so, does that alter the date and the time of the carriers to be in-service or indeed for the contracts to be let?

  Lord Bach: If I can just step back one. Originally the concept was this would be a STOVL carrier only. There was then a more fundamental appraisal taken of the proposition that said the life of the ship is likely to be considerably longer than the life of the aircraft and it would be imprudent right from the outset not to future proof-it. The fundamental design concept of the carrier makes it capable of being adapted midlife if circumstances occur which make that a sensible proposal, relatively economically. As it happens it means that we can do that at any stage if there is a completely dramatic problem which does not get resolved but we are a very, very long way away from that. At the moment we are looking in the context of the expectation being STOVL but to manage the risks as best we can. We will do that better when we have some understanding of the actual numbers which will come out later this month.

  Q293 Chairman: What would be really helpful, Minister, would be if every now and again you confided in us and said "There may be problem popping up here" rather than us having to read a newspaper and get very exercised by the information we see. If you are trying to repair relations with British Aerospace maybe you could include us in that process.

  Lord Bach: Can I just say on that, if we have been remiss, of course we apologise. What I think might be helpful is if we send you a note on the CVF/JCA issue going into slightly more detail than we have been able to here today. We will do that as a matter of some urgency.

  Q294 Chairman: We accept your invitation and Sir Peter, tell us what is going on here.

  Lord Bach: Can I make just one point. It went back to Mr Hancock's original question about the CVF and what I said earlier on, others have said too, about the crucial part the assessment phase can play in a project and how it can save time and cost later on. It may be that CVF is a good example of that. If we were to allow the assessment phase to run on for some time further in order to de-risk the project more and to form a sensible alliance, if we were to do that I can, I am afraid, see the headlines now which suggest that would mean that we were going back on our word as far as the in-service date is concerned. That is not the position. We were doing that in order to try to protect the in-service date, and that is really the point I am trying to get across.

  Q295 Mr Hancock: I regard that as genuine commonsense. I do not that see you would get anything other than support from any of us on that.

  Lord Bach: Getting support from you is very important but I am afraid the outside world and politicians, for example, who do not have the advantage of sitting on this Committee might take some advantage of that.

  Chairman: There are occasions when we get told things in confidence and if that confidence is broken then that privilege should not be extended further. We could focus on procurement issues particularly at this time of the year and maybe we should have a half session around Christmas perhaps to be alerted to any problems that might come so that we are not as shocked when bad information, or not good information, comes forward.

  Q296 Mr Hancock: If I could speedily move on to—probably "speedily" is the wrong word to use in relation to Typhoon—if I could move quickly on to Typhoon.

  Sir Peter Spencer: It is very fast.

  Q297 Mr Hancock: The question I think you should answer first of all is on the latest report that there is a suggestion that the Eurofighter is not a very safe aircraft. It would be helpful for the record if that was dealt with first-off.

  Lord Bach: Let me just start with that and then I will pass on. I notice that is not a story that was run on the BBC this morning at all. I listen to the Today programme always to find out what is going on in the world and I noticed that it was not even mentioned.

  Q298 Chairman: In the MoD too probably.

  Lord Bach: No, the MoD have been discussing it, but not the Today programme. I cannot think what the reason is for that.

  Q299 Mr Hancock: Minister, were you discussing it before or after the report appeared in the paper?

  Lord Bach: I really do not think it is an issue that deserves the kind of seriousness with which the article that appeared in the Evening Standard last night pretended. The fact is that ACAS, the Assistant Chief of the Air Staff, on behalf of the Secretary of State, decides the terms of release to service, standard introduction of a new aircraft type, and he looks at the safety case. One of the elements that feeds into a safety case is the independent study that is made, in this case by QinetiQ. All new military aircraft undergo a rigorous incremental series of testing and evaluations to gradually expand the flight parameters and increase the aircraft's operational capability. This is absolutely standard procedure. Operational effectiveness is important but, to us, safety is paramount. No country in the world, and I think I can say this absolutely clearly, is more concerned about safety and safety procedures than the United Kingdom. As a result of the report that was quoted in the Evening Standard last night, the Typhoon was modified, the procedures were reviewed and limitations applied to ensure that the aircraft was ready to enter RAF service and, indeed, it now has as a consequence of ACAS's decision on 13 March. Sir Peter?

  Mr Hancock: I am satisfied with that answer.


 
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