Select Committee on Defence Minutes of Evidence


Examination of Witnesses (Questions 60 - 79)

WEDNESDAY 15 SEPTEMBER 2004

RT HON GEOFF HOON MP, SIR KEVIN TEBBIT KCB CMG AND GENERAL SIR MICHAEL WALKER GCB CMG CBE ADC GEN

  Q60  Mike Gapes: The Future Capabilities document talks about further significant investment in this area but the examples you give are only limited to improving deployable port and maritime capabilities; and you talk about strengthening logistic capability at brigade level, but I would be interested to know how? Are we talking about more people or are we talking about the system, and how can I be certain that in the next conflict either you, because you have been a long-serving Defence Secretary and are coming up to Dennis Healey's time soon, either you or your successor, whenever that is, will not be facing exactly the same questions and criticisms that we have raised in the past and our previous committees have raised about this vital area?

  Mr Hoon: I think that is a perfectly fair observation, and it is consistent with the problems that we have had in a sense since the end of the Cold War, because we have all consistently failed to appreciate the kinds of challenges, the break up, first of all, of the Warsaw Pact, disintegration of countries like Yugoslavia, the challenge of intra-country conflict, the global reach of terrorism—these are all challenges that none of us have properly anticipated. None of the excellent work that was done in preparation for the Strategic Defence Review anticipated that there would be the kind of attack on the twin towers and the Pentagon launched from a country like Afghanistan which was completely off the international radar. What I am saying to you is that, if we are to ensure some degree of preparation for whatever changes are going to hit us in the years to come, the kind of reorganisation, the kind of flexibility, the ability to conduct a number of different operations simultaneously with the necessary consequences for logisticians and others, all of that seems to me to be absolutely going in the right direction. Whether it is enough you will have to reconvene in five years' or ten years' time and see, but I am absolutely confident that this is the right direction. Whether it is sufficiently quick, whether it is sufficient in numbers, as I say, we will have to look at in the future.

  Sir Kevin Tebbit: Firstly, it was not good enough. We said it was not good enough in our own internal report. It was something which was a weakness that the Department accepted, accepts and needs to do better in. It was not because we were not looking at it. It was because we had a solution which we proceeded with which proved to be too complex, too expensive and we had to stop and take a different route. The problem is not getting logistics to a theatre. That is fine; it is good; it worked brilliantly. We got as much as we got in the Gulf War in half the time to the theatre. The problem was getting it out at the end into the actual deployed locations. You will appreciate that is very tricky. There is no simple off-the-shelf solution to that. Nobody else has to do that: supermarkets, civil systems are all fixed points; we have to do them as deployed points. You need several things. We had a choke point, by the way. We were always going into one place. So we had a massive amount of stuff going into one single location in a very short period of time; not something we had expected, because we expected, by the way, to be going in through Southern Turkey. So these are mitigating circumstances—do not make too much of it—but there was a system. The system was overwhelmed by the amount arriving and the speed with which it had to turn around, and that is why we talked about 'losing visibility'. What we are doing is putting in place an in-transit visibility system to help us from the deployed location to the front-line. We did introduce it at the end of the operation and it made a huge change straightaway; so we know it works. It is called TAV. It is an American system. We had TAV Minus. We are now integrating this thing (TAV) into our existing logistic systems and that is already proving to be a great help. It does not cost a fortune. The software costs are not huge. I think the full figure you have got probably there is around £17 million. We have already spent about half of that on this. But you also need people who are trained to use it at both ends.

  Q61  Mike Gapes: Is that like a bar-code system?

  Sir Kevin Tebbit: It is like a bar-code system, but we have got those already. It is more a question of having it on the screen so that you can link—

  Q62  Mike Gapes: So it is asset-tracking?

  Sir Kevin Tebbit: It is asset-tracking.

  Q63  Mike Gapes: In the real sense?

  Sir Kevin Tebbit: So that you can link containers and you also know what is in the containers. So you not only know that this is the container that they sent you, but this is what is in the container and it corresponds to what you are expecting. Those systems are now being fielded. We also need trained people to help with the tracking of the logistics. That is part of the 3,000 that will be added as a result of the change in the four regiments, four battalions. We also need greater effort on operational logistics, and we did make this appointment, ACDS operational logistics two-star appointment. Again, as the campaign more or less was going on that has proved to be a great help. There are other factors as well, for example, sheer communications capacity, which is about satellites and those sorts of things, which would not be in these figures because it is part of the overall infrastructure that we are trying to put in place, the defence information structure, but that is also relevant to deployed logistics because that it what enables people in tents in the field to actually open their laptop and they can get a reading because they have got a satellite link. So there are a lot of other elements as well, but I do need to assure you, and I think it is my responsibility, because frankly we did not do well enough, that we are putting a lot of effort into this and it is getting better, it is not just a question of how much money you are spending; it is this total linkage of the various systems.

  Q64  Mike Gapes: Is this for all three Services working together?

  Sir Kevin Tebbit: Yes.

  Q65  Mike Gapes: Would you say that you are confident that you have got the ability at this point for the three Services to work in the same integrated system or at what point in the future will we hear that?

  Sir Kevin Tebbit: I am confident that we will progressively be getting better between now and 2007.

  Q66  Mike Gapes: You are saying that by 2007 we will have a unified Tri-Service logistic system?

  Sir Kevin Tebbit: We have already got a unified tri-service logistic system.

  Q67  Mike Gapes: Which works?

  Sir Kevin Tebbit: The issue is we have legacy IT systems that we have to put smart front-ends on to pull them together and give everybody the same amount of information.

  Q68  Mike Gapes: Would you be confident to say that by 2007 you will have a system based upon this American technology that you referred to and everything else that would in a sense enable you or other people at the centre to be able to say, "We know where everything is, we know what container it is in, we know which key, which lock fits that container and we know which people are going to take this from there and put it there"?

  Sir Kevin Tebbit: Three years ago if you had asked me whether I would be confident about DSMS, which was the previous system we had tried to bring in, I would have said, "Yes". Now I have been in the job for six years, I am not going to say "Yes" again. What I am going to say is, you know, I stake a lot of my job on getting this right and making sure it happens progressively and I will continue to do so.

  Q69  Mr Hancock: I have to say as a starting point, I share a lot of your thoughts on the Army. I think the Army will develop in the way you have described and will move forward in a very successful way, but if I could say as a last remark to Sir Kevin on his comments, one wonders with the sophistication of your logistic system on computers now, about the ability for someone to hack into that.[4] That would be a real recipe for a disaster to emerge?

  Sir Kevin Tebbit: And that is one of the problems. They have to be secure.

  Q70  Mr Hancock: I would be interested to know at some stage how we are going to cope with the security of that. Under the proposals the fleet of destroyers and frigates will be reduced to 25 in 2006 and yet we are told that the first Type 45 due to enter service in 2007 is probably going to be delayed, it may be 10 years before the numbers of ships actually return to their present levels, and yet in Future Capabilities the suggestion is that for every one ship on deployment you need at least three or four in support of that. What does this actually do for the Navy and what does it do for our capabilities. The First Sea Lord made it quite clear that a fleet of 25 took us very close to the cusp when it came to our ability to serve the priorities and the issues that the Government are giving the Navy to cope with?

  Mr Hoon: Can I again just qualify slightly your premise. These changes are not predicated on the availability of Type 45. Type 45 will enormously enhance our ability once it comes into service, I suppose towards the end of the decade, and will then replace what will be ageing Type 42s. We have done the same with the Royal Navy as we have done with other parts of the Armed Forces. We have looked at the kind of strategic environment in which they operate, we have asked ourselves very difficult and searching questions about the kinds of capabilities, the kinds of effects that those capabilities are going to generate and what force size is most appropriate in that context. I accept what Crispin says, that inevitably that is in the context of a budgetary settlement, and that is always the case. We have looked hard at ships that we have available. Those that are more flexible and more capable in dealing with the kinds of strategic environment we face we will retain, those that are less flexible they will have less a priority and we will not need them. It is not simply either, the question of their age. We will keep some older platforms because they have precisely the kind of flexibility that we require. The three existing aircraft-carriers, for example, have proved their worth time and time again in being able to deliver capabilities at great distance.

  Q71  Mr Hancock: If the reductions of six ships are not really about the replacements of the Type 45s coming on board, the First Sea Lord, again, if you accept what you have just said as being the political side of it, the military side of it, he made it quite  clear that the reductions would need a commensurate reduction in military tasks. If I could address that to the Chief of the Defence Staff. What does that mean in terms of our deployable options? How did you take that into the Defence Management Committee meeting?

  Sir Michael Walker: We recognised that with the smaller numbers clearly you would not be able to have as many ships in as many places as you were with a large number of ships, and we looked at the tasks around the world. There are always as many tasks as you could dream up for military forces and various things, but we have to cut our cloth at some stage according to what we believe are the right levels of activity and commitment. So we looked at the various commitments we had around the world, whether they were patrol ships in the Caribbean, whether it was in the South Atlantic, North Atlantic, our commitments to NATO, and we came up with a judgment that said, "That is a fair deal for a country of our size with Armed Forces of our size. That is what we should be recommending to our Government as to the sort of commitments we should undertake", and some of them perhaps are no longer as relevant as they were.

  Mr Hoon: Can I say this as well? There is a temptation sometimes, I think, to see the Royal Navy as somehow separate from the kinds of strategic changes that are occurring in the world. When the First Sea Lord talks about reducing commitments, it may well be that he is reducing commitments that in a sense are no longer as relevant. Some of our standing commitments historically, particularly those through NATO for example—NATO also has to change in this environment. We have put a lot of effort, as an important member of NATO, in getting NATO to recognise that some of its traditional commitments and organisation still largely determined, I think entirely wrongly by the Cold War, need to change. So there are adjustments that are taking place at national level but which also take place internationally and changing the way in which our Royal Navy operates, and our Royal Navy will be engaged in this expeditionary warfare in exactly the way that the Army and the Royal Air Force will be; so it is supporting that expeditionary flexible capability.

  Q72  Mr Hancock: I think that is very helpful, and I do not think any reasonable person would dissent from that; but I think it would help us enormously if the suggested reduction in the capabilities was actually spelt out in a more explicit way rather than in the vague way that you describe, General. I think it would help enormously if there was some meat on the bones of what you have said, saying, "These are the ones that are offered up as possibilities." HMS Richmond, doing a first-class job in the Caribbean today, I think based on the evidence that we have seen, would be an impossible commitment to reduce because that on-going problem that they get and our expectation to have a ship there will continue. So I think from our point of view, looking at what we are trying to decide here about the way in which this is going to work out for all of the Forces, it would be helpful if we knew?

  Mr Hoon: But that is a perfect illustration of precisely what General Walker was saying. The ship that happened to be available in the Caribbean, or the two ships were there for a completely different task than the one that they had engaged upon. We could put ships anywhere in the world, we could find perfectly proper activities for them and they would then be available for whatever natural disaster occurred in whatever part of the world we are considering. That is not a very sensible way to organise our armed forces.

  Q73  Mr Hancock: No, you are taking that the wrong way. I know very well that those ships in the Caribbean are not there to protect islanders from the menace of hurricanes. It is fortuitous that they have that capability. So you are being a bit too cynical. I am looking for you to tell us, "Not that one", I am looking for you to explain to us where is the reduction in capabilities that the head of the Navy said would have to happen by 2006 when these reductions start to bite in the Navy's ability to deliver the same punch as they have got at the present time; and that to me is a reasonable question to ask?

  Sir Kevin Tebbit: Can I help to answer that in terms of what we decided in the Defence Management Board. The first thing is that we judged that the size of our maritime task forces could be smaller than before. The reason for that is partly because of reduced submarine threat and partly because of—I hate to come onto high technology again because I know the Chairman has expressed some scepticism about this—but network enabled capability is genuinely networking ships more effectively so they can link together, acquire targets effectively, exchange information and engage targets. With that, again, we are able to cover a wider sea area with fewer ships. So the size of our task forces has been reduced under our planning assumptions. I know you can never cater for every contingency, but we judged that, broadly speaking, that did enable us to reduce the number of destroyers and frigates; also the introduction of Sonar 2087 in Type 22 frigates, which gives a greatly increased capability of surveillance and control. So it is a combination of new technology coming in along with new types of vessel and judgments about changed threats, and it was the balance of those that arrived at those figures as well as a judgment that we could reduce certain tasks, including participation in a particular standing NATO task.

  Q74  Mr Hancock: I think it would be very a interesting question for you to answer when you talked about the Challengers, about the issue of may be storing the 40 out of service Challengers because the need might return. I do not want to bring back old grief to the Navy, but HMS Nottingham is the classic example where an accident occurs, a ship is out of commission and a sizeable chunk of your deployable force is out of commission. Other things happen in warfare as well. We know in our lifetime, in recent times, we have lost ships in action, so we know that that is a capable threat. What is there when you are on the cusp that allows you to have any allowance for those sorts of incidents to take place? If the First Sea Lord is right that 25 ships takes you to the edge, what is there in a fall-back? Will we rush to dispose of some of these quite new ships?

  Mr Hoon: I think that is a perfectly fair point, but the answer to that is that we make those judgments in the light of what is available at the time, and, consistent with the answer I gave you earlier which you did not like, the truth is that, given the range of activities that we could engage in, we have to make judgments about what we have available and how we use that equipment. That will not change in the future, but, as Kevin indicated to you, what we have available is far more potent and far more capable than anything we have had in the past, and that will go on improving as Type 45s and the carriers become available in the future.

  Q75  Mr Hancock: What it the latest date we have now for the first Type 45? 2007 is a date which is going out of the frame, is it not?

  Sir Kevin Tebbit: I think that is the date that is familiar to me. Yes.

  Q76  Mr Hancock: Still 2007?

  Sir Kevin Tebbit: Yes; and the question of reducing the numbers of Type 45 is basically to do with how many we produce, as it were, in the out years. It is not about cutting the numbers that we need in the medium-term.

  Q77  Mr Hancock: I think there is a slight difference of opinion?

  Sir Kevin Tebbit: No, I think we are just checking the date.

  Q78  Rachel Squire: Once again declaring my interest, this time, of course, with the dock yard, can I ask you about the consequences for industry of your decisions on a further reduction in the naval fleet, both ship-building, new-build and maintenance work. As you have just mentioned, only eight Type 45 destroyers are now going to be required and there will be substantially less refit/maintenance work as 12 ship or boats have been withdrawn from service earlier than planned. Can you say what assessment you have undertaken of how those decisions will affect the UK's ship-building and refit/ maintenance industry?

  Mr Hoon: If I can separate out the question of ship-building from ship-repair and maintenance because, though they are obviously connected, it is important to make the distinction. First of all, as far as ship building is concerned, I recognise that there is a risk that there will be a huge demand from the Ministry of Defence during a relatively limited period of time for ship-building in the United Kingdom and after that a relatively difficult period for those companies which supplied those ships, and that is why we have looked hard at the best way of managing our demand, what the last Chief of the Defence Staff when he was First Sea Lord described as the most exciting warship building programme he had seen at any time in his career in the Royal Navy. So I have no doubts of the excellence of the programme. We have to ensure that we have a study looking at the question of capacity in the industry. I am interested in the capacity because I am also interested in the price, and if we demand too much over a short period of time, necessarily we will have to pay more. We are looking to find the right way of ensuring that our warship building programme can be met across the United Kingdom. Inevitably, and this is not just a question of procuring fewer ships or having fewer ships, these ships are more modern, more effective, they require less by way of maintenance and refitting and that necessarily has industrial implications. You know every bit as much about this subject as I do from long years of experience in your constituency. It is something that we have managed with the relevant yards. We had a programme of allocating certain ships for a period, but thereafter, not least because our requirement would reduce, we moved to a more competitive environment. I recognise that there are challenges on both sides. We need to retain a capability for repair and I recognise as well that companies need a degree of predictability as to what is available.

  Q79  Rachel Squire: I think, Secretary of State, retaining the capability for repair and ship-building, maintaining the skills that are necessary, is one of the key concerns. Yes, you know, great promise, as you say, of the best warship building programme for a very long time, but the concern that in the short to medium-term there will not be sufficient work to maintain the skills of the work forces in the various yards. I would be interested in your comments on how much discussion has been taken on trying to overcome that particular concern and perhaps looking at the timing of future ship programmes being changed to try and reduce the level of peaks and troughs?

  Mr Hoon: That is really what I was saying. We have this study for precisely that purpose. I recognise that there are some short-term problems. There is, if you like, a medium-term glut in terms of orders and there may be some difficulties in the very long-term. We have to manage that process and we will do so in discussion with industry.


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