Select Committee on Defence Minutes of Evidence


Examination of Witnesses (Questions 700 - 720)

WEDNESDAY 12 JANUARY 2005

RT HON GEOFF HOON MP AND GENERAL SIR MIKE JACKSON KCB, CBE, DSO, ADC GEN

  Q700  Mr Hancock: Is any consideration currently being given to slow down the phasing out of some of the current ships coming out of commission to retain them for a little longer to match the latest in-service data for Type 45s?

  Mr Hoon: I do not see any necessity to do that.

  Q701  Mr Hancock: So you are satisfied that the current size of the fleet is good enough to carry us right up to 2009?

  Mr Hoon: As I made clear earlier, we have to look carefully at the commitments that we undertake. That is no different from any other part of the Armed Forces.

  Q702  Mr Hancock: Would it be right to say that there is serious concern for senior levels in the Royal Navy about their ability to fulfil the tasks that we currently are setting them because of the shortage of ships?

  Mr Hoon: I have answered that question already. The point is that we will review carefully the kinds of commitment that we currently undertake. Some of them, as I have indicated to the committee, are in my opinion commitments that, for example, NATO requires, that I do not believe necessarily will have to be done in precisely the same way for the indefinite future.

  Q703  Mr Hancock: That is not the question I asked, is it? The question I asked is, have senior elements in the Royal Navy made it clear to you that they are less than happy with the commitments they are planned to see through over the next two to three years with the ships and crews they have at their disposal? Have you had representations along those lines?

  Mr Hoon: No, I have not.

  Q704  Mr Hancock: You have had no representations on any serious concerns from senior naval staff on these matters?

  Mr Hoon: No.

  Chairman: Mr Hoon indicated dissent in case—

  Mr Hancock: He said no.

  Q705  Richard Ottaway: The quotes I had earlier on, quoting the First Sea Lord on this point, were from Warship World, September/October 2004. On Mr Hancock's point, Admiral Bland said, "I have told the Secretary of State that we have accepted beans today for jam tomorrow providing that what we are promised is coming along", so you have had representations.

  Mr Hoon: I do not think that is in any way inconsistent with what I have said to the committee.

  Q706  Richard Ottaway: I do not think it is, but—

  Mr Hoon: In which case I have not had those representations.

  Q707  Mike Gapes: Can I ask about the effects on family life for soldiers of the impact on officers and senior NCOs about where they might live, how their families will be organised as a result of the impact of the ending of the arms plot? It has been suggested that in fact it may be moves towards more permanent basing in the UK, a reluctance of people to want to move between battalions and not wanting to permanently be based abroad. That will then have an impact in different ways on their families and their contacts, whether people are spending long times travelling back from Germany by ferry or motorway whilst their families are living in the UK, and this might lead to disruption of difficulties in keeping relationships and so on. Do you have any thoughts on that?

  General Sir Mike Jackson: I do; I have quite a lot of thoughts on that. I should start by taking us out of the infantry context for a moment and using, say, Royal Engineers as an example. The Royal Engineers have 12, off the top of my head, major units, 12 engineer regiments which are scattered throughout the United Kingdom and indeed Germany. They do not arms plot. They move their officers and soldiers on a career based basis. I see none of these horrors which some prophets say may come about from the Royal Engineers, or indeed the Royal Artillery or the Royal Logistic Corps. All of them do not move their units around but move their people around on a planned basis and they seem to be okay. I think we need to take some of these concerns with care, of course, and people's lifestyles in 15 years' time are going to be different from what they are today, it seems to me. Purely on the family side, I have met one senior NCO more often than not, but officers too, who have been instructors, say, at Sandhurst; they have finished two years there, re-joined their battalion in Yorkshire. Six months later they arms plot to Germany. It is not difficult to find people who have moved three times in four or five years. We have to do better than this but I do not think that is right for tomorrow's families.

  Mr Hoon: The other side of this is that requiring a large number of people to move every two years is enormously disruptive, not only to family life but also to the careers of spouses; if we go back 15 years, the world has changed. When we look at the reasons given by many soldiers for leaving the Army, precisely at a time when we would rather like to keep them because they have been well trained and they have a lot of experience, often it is for those kinds of domestic considerations. You simply cannot in the modern world expect people every two years to move their base because, although the men will still be deploying to the Balkans, to Afghanistan, to Iraq, their families are having to move from one part of the country to another, often far removed from the place at which they were recruited.

  Q708  Mike Gapes: I can see all those arguments and I think it is a good idea that people have the right and the ability to buy a house and have a family home and not have their children moved around, but how much choice will people be allowed in terms of location or movement? How do we get that balance between the aspirations and changes that we are talking about for individuals and their families and on the other hand the imperatives of Army life?

  General Sir Mike Jackson: Soldiering is always going to be a mobile profession. I cannot see an Army which does not move people for all sorts of reasons. What we have been doing is moving them almost gratuitously often through the arms plot and therefore that should cease for all the reasons I have laid out. Again, may I turn to the non-infantry Army? I have spoken to the Royal Engineers. There are choices. There are choices of the type of engineering you do, there are choices of where you do it and all engineers (and the rest of the Army but I am using them as an example) run a perfectly sensible personnel policy where if somebody who has come to the end of, say, three years in a field engineer regiment, is asked, "Where do you want to go next?". There is an element of choice that comes into this, quite rightly, and provided that his proper career progression can be meshed with his choice, it seems that he is winning and the Army is winning. That is exactly the sort of process which I would see taking place in the infantry in future.

  Q709  Mr Havard: I have a series of questions about finance. There have been a lot of questions about overruns and the DPA and there are questions about resources and so on. We know what the background is to all of this and there are the efficiency gains that apparently have to be made to offset other costs. The guts of it are the extent to which the announcements which you made, Secretary of State, in July and December and all of these questions about reorganisation and organisational internal change, are driven by budgetary factors rather than by the policy decisions that were originally set out and whether now disconnects have come about from reasons of expediency and overruns and everything else that are causing effects back that are budgetary driven as opposed to delivery of the original policy.

  Mr Hoon: The budget has increased. It has increased in each of the years that I have been Secretary of State for Defence. It will go on increasing. We have the largest sustained increase in defence spending in more than 20 years. Seven years of planned increases in defence spending is a record that this government is rightly proud of. It is a record that has not been matched in more than 20 years and we will go on in the course of this spending review spending more money on defence, a total of £3.7 billion extra to be spent on defence.

  Q710  Mr Havard: So you are confident that the proposed suggestion that there are going to be cost increases in the top 20 equipment projects and this all balances out, but you are not going to be able to afford all the things you have got on the list and the carriers and Typhoon and all the rest of it and so we are having to cut people in order to make up for spending more money on equipment?

  Mr Hoon: But that is not happening. The proportions of the budget spent on equipment will remain roughly consistent in the years ahead. We are not, as has been suggested from time to time, quite wrongly, by some commentators, sacrificing the position of people for enhanced equipment. We recognise that there needs to be a proper balance between the amount we spend on equipment and the amount we spend on people. That balance will remain roughly the same in all the spending forecasts into the future.

  Q711  Richard Ottaway: How much is your ability to fund your proposals in each capability dependent on the achievement of your efficiency targets?

  Mr Hoon: All of the money that we save in making our systems more efficient, which we have touched on already in relation to end-to-end supply and so on, will be available to invest in front-line activity. The more we are able to save from generating capability more efficiently and more effectively, the more we have available to spend on front-line activity.

  Q712  Richard Ottaway: Do you expect 2004-05 targets to be met?

  Mr Hoon: Yes, I do.

  Q713  Mike Gapes: When do you expect to announce the production decision for Nimrod MRA4? Are you still committed to a fleet of about 12 aircraft as stated in Future Capabilities and is the aircraft fulfilling its expectations?

  Mr Hoon: There is a great deal of work that has gone on in relation to Nimrod. I saw the aircraft, I am sure entirely coincidentally, on the runway at Warton when I went to see Typhoon. I am sure the BAE systems wheeled it out just by chance when I was there. It has flown. They are making progress but we are involved in negotiations on price, capability and numbers and much as I would like to disclose to the committee my negotiating position I feel it probably would not be in the interests of the British taxpayer at this stage to do so.

  Mike Gapes: Right, I will leave it there.

  Chairman: Thank you. Mr Viggers please.

  Q714  Mr Viggers: There are three huge capital programmes in the procurement budget. One is Typhoon, tranche 2; the second one is the aircraft carriers due in service in 2012 and 2015; and the third, integrated with that, is the Joint Strike Fighter. These are vast programmes and certainly the aircraft carrier programmes seem to be dogged by further delays. It was proposed to appoint the project integrator before Christmas. Now we hear it is the second week of January 2005 and we are now on 12 January. Can you make a statement on how you see the progress of the aircraft carriers?

  Mr Hoon: I am sorry, Mr Viggers, that you retreat into the language of the tabloid journalists but it is not "dogged by delays". The in-service dates for the two carriers remain 2012 and 2015, and what we are doing is what the Committee had recommended that we should do which is to eliminate as much risk as we can as we develop the design. Much of the work that is going on today is to ensure that the inherent risks in producing projects of this kind are reduced as far as we can. We are getting ahead in the design work. Indeed, it has been suggested to me that the design work is further advanced for the carriers than any ships of this kind in the past, so there are no delays and we are doing extremely well.

  Q715  Mr Viggers: In that case, you can tell us what size they will be?

  Mr Hoon: Those are matters that we are still negotiating. I have not signed a contract yet and I think it is very important that I am able to negotiate with those who will be on the other side of that contract with as much flexibility as possible. If I answer that question with the precision that you are obviously looking for, then again I would be giving away an aspect of my negotiating position that I am not prepared to do.

  Mr Viggers: And what do you expect the in-service dates to be and what is your definition of "in-service date", bearing in mind that the definition, Secretary of State, has previously been that the equipment is in service? Do you expect it to be—

  Chairman: —operational?

  Q716  Mr Viggers: —In 2012 and 2015, as you have stated?

  Mr Hoon: That is the position.

  Q717  Mr Hancock: Why did the head of the carrier team leave?

  Mr Hoon: Because he has gone to another job, as people do from time to time.

  Mr Hancock: That was the only reason?

  Richard Ottaway: It is not. He was fed up basically.

  Q718  Chairman: Is he obliged to sign the Official Secrets Act because he knows where all the bodies are buried and there are a lot of them, not all of them at sea?

  Mr Hoon: He had been in that position for a very long time and, as is the case in most walks of life, he has got himself another job and we wish him every success. He has done a tremendous job for the Ministry of Defence and on this project.

  General Sir Mike Jackson: May I just remind Mr Viggers that there is a fourth programme which is of very considerable interest to me, the Future Rapid Effect System, or FRES. I would be grateful if you could make that quartet in your mind.

  Q719  Mr Jones: Is the in-service date still 2010?

  General Sir Mike Jackson: I doubt it will make 2010 but the systems house is still at work.

  Mr Jones: Honesty at last!

  Q720  Chairman: Thank you both very much. We will have to release the elected Members who have to rush off to vote. We have a number of questions that we shall write to you about including the one on CIMIC and perhaps you could get your staff to bring the letter to your attention.[11] Thank you both very much.

  Mr Hoon: Thank you very much indeed.





11   Ev 176-178 Back


 
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