Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 80 - 99)

WEDNESDAY 9 NOVEMBER 2005

MINISTRY OF DEFENCE

  Q80  Mr Bacon: Your phrase "single command structure" leads me neatly into what the Chairman tells me is my last question and that is about tri-service. Plainly with the success of Northwood and various other operations, there is a closer integration than ever before. What truth is there in the notion that serious consideration is being given to an effective merger of the Services? When I lived in Canada, there was one Service, the Canadian Armed Forces.

  Sir Kevin Tebbit: None whatsoever.

  Q81  Mr Bacon: That is not going to happen. Why could it not happen, keeping a brand badge separate but to all intents and purposes underneath being managed as one?

  Sir Kevin Tebbit: Let me just say that from a policy point of view, one of our greatest successes has been the creation of a Permanent Joint Headquarters in 1995.

  Q82  Mr Bacon: At Northwood.

  Sir Kevin Tebbit: Yes, under a Commander of Joint Operations who is a separate budget holder in his own right and is the man who essentially puts together the force packages necessary to carry out the various operations that we are involved in. That works extremely well and I think it gives us the best of both worlds. From my point of view, from the Permanent Secretary's point of view—military men  can comment—it preserves the ethos of the  individual Services according to their own characters, background and roles, while at the same time giving us the effects we need on the battlefield or in the peace support area or whatever. Not only would there be problems about doing that, it would be completely pointless because you would actually go backwards; it would reduce the effectiveness of our Armed Forces rather than improve them.

The Committee suspended from 4.40 pm to 5.20 pm for divisions in the House

  Q83  Mr Davidson: I wonder if I might go back to Operation TELIC and the shortages of body armour and boots and air filters in particular. I have read the stuff here about this system which seems to be fine and everything works dandy, but why did we, presumably with the same system, have such a breakdown in supply in TELIC?

  Sir Kevin Tebbit: We have improved the system since TELIC, but let me go back to TELIC. TELIC was an operation which took place with a speed of notice that was much shorter than our planned readiness times to meet it. Perhaps I might just explain; I tried to before but I think it is important. I was with Geoff Hoon in Ankara in January 2003 trying to negotiate with the Turkish Government the arrangements for what we then expected it still to be, our force package that would go to Iraq. It was going to go through south-east Turkey and would have held the northern part of the country. It would have involved a very different force from the one that we eventually sent; its composition would have been completely different from the one we eventually had to send. It was a smaller force than the one we had to send, it would have been equipped particularly for mountainous conditions, whereas the force we sent had to be equipped for desert conditions. It had a  completely different logistics supply chain requirement from the one we found we needed in Kuwait. The host nation arrangements were completely different; different countries. There was a total change from plans which might have been made up to January to what actually happened for an operation which took place by the end of March. We usually plan on a much, much longer timescale to be able to do such an operation than the amount of warning time we actually had with this operation. Therefore, it was not to be expected that we could achieve perfection and there were shortfalls. What was impressive I think was that we were still able to manage the risks and difficulties and achieve the result. If I might just give you a specific, it was not that we did not have a system for tracking and identifying the logistics that we were putting into the theatre. We did have a system, but it was a slow system and it was overwhelmed by the speed with which items had to arrive into this one place in Kuwait where everything had to come for this huge force which we were putting together and it simply broke under that strain. What we now have is a much better system, which I could ask Air Vice-Marshal Leeson to explain in more detail if you wish, which does indeed give us much more resilience than was the case there, but the basic answer to your question is that we were operating outside our planning guidelines.

  Q84  Mr Davidson: May I just get this clear? At that stage you had a state of readiness which depended upon the task being the task for which you had already planned and you were unable to adjust if there was an alteration in both the time parameters and the style of operation. This does not seem to me to be the sort of flexibility and planning that would be necessary. You seem to be saying to us that you can implement any plan we want, provided it is a plan you already have.

  Sir Kevin Tebbit: Not at all; no. Forgive me, I was giving you the very specific answer; I ought to give you the more general context. Our defence planning assumption is to be able to conduct three operations simultaneously, a combination of medium and small scale, or to be able to reconfigure with warning time to a very large-scale operation. This was a large-scale operation; no mistake about that. Those are not absolutely specific, because you cannot be specific about the precise operation it might be. If we tried to be specific, we should just have a massive defence budget. So we do the best we can with assumptions, plans based on exercises, based on operational analysis; we try to scale our forces, our training requirements, our equipment, our support requirements around assumptions, but they are all assumptions. When the real world issue hits, we then have to shift, hoping that we have managed risks and carried our assumptions as well as we possibly can to the real world and we have to act. All I am saying is that in this particular case, the time available to make the shift was less than ideal. It meant that there were particular stresses at various parts of the points in the force structure.

  Q85  Mr Davidson: I do find that slightly difficult to accept on the basis that my recollection is that virtually everybody knew what the options were some considerable time beforehand and while a formal decision might not have been made, the direction in which we were moving was quite clear. What I want to clarify, and I understand that you were talking there about what happened in the past, is the shortage of equipment such as boots, for example. Boots do seem to me not to be the cutting edge of high technology. I, in my office, was being phoned all the time by the wives of Territorials saying that their husbands were out there with the wrong sorts of boots and without desert equipment and so on. What I want is a guarantee that the changes in the system that you have now introduced mean that that will not happen again. Can you give me that guarantee?

  Sir Kevin Tebbit: I can give you various guarantees, but I must just go back. I do not think I made myself clear in my first explanation. It was a very different environment, even to the extent of requiring rather different boots and colour of clothing, going in through the south than the north. The warning time for that size of force that we actually had for that specific operation was very short; it was three months not six months, certainly not a year. I do ask you to consider that, because it is a real fact. To come on to your point positively, since TELIC we have reviewed our scales of requirements. Every year a logistics audit is done, including what we would need for deployed forces, and we have increased the scales of holdings that we have for uniforms and boots and that sort of thing. We have done a lot of other things since then. That audit also reviews our arrangements with industry and establishes whether we are right in our assumptions about how quickly they can produce the stuff we do not hold in our inventory. If we have it wrong, then we have to change our assumptions or, more likely, redo the contracts so as to make sure that we can. So we have done indeed a number of things and I could go on in more detail. Back to a fundamental point, in a lot of cases it was not that we did not get the equipment there even in the reduced timescales, it was that it was piling up so fast through one small choke point that our tracking and identification system, what was in the ISO containers, went wrong. We have also changed that whole way of tracking and being able to see our material in transit and that also is a very big improvement. It includes IT changes; there is a particular project going on at the moment. We also kept that system called TAV minus, which you may remember us discussing before, but also, for example, the SkyNet programme, making sure we have more satellites that we can use so our communications are more robust.

  Q86  Mr Davidson: I do not want to get drawn unduly into micromanaging the system for you; I just want to know that this is not going to happen again.

  Sir Kevin Tebbit: I am just trying to give you assurances.

  Lieutenant General Sir Rob Fry: I cannot guarantee this is not going to happen again and for one very good reason: there is a role in here for military judgment and the management of operational risk. As happened in TELIC and as can happen on any number of other occasions, a judgment is made by the people who are commanding the forces in the field on whether they wait for the logistic train entirely to catch up with them, so that every man is equipped to the level which we want, or whether there are other absolutely compelling factors which say that we do something now and those can be military or those can be political. We must always accept the fact that there is a place for that, because that is much more likely to bring about a decision on the battlefield than simply waiting for our logistics stocks to be right.

  Q87  Mr Davidson: To be fair to you, I entirely understand that there are these operational decisions which have to be taken in the circumstances that prevail at the time and striking a balance and so on. The issue is of course, if the commander at the time has to decide to go without certain equipment, that we need to clarify whether or not things could and ought to have been done to make sure that that equipment was actually there. That is the issue that perplexed us at the time of TELIC.

  Sir Kevin Tebbit: May I just give you a little more on that? We kept explaining that commanders declared they had full operational capability and therefore they had what they needed to do the job. It did not stop your criticisms and we accepted those. If you look at paragraph 2.38 of the Report, you will see that already we have purchased £120 million of extra consumable operational stocks, which we now hold in the inventory and which we do not therefore have to get off the shelf, and can therefore get to any particular event faster than would otherwise be the case; well we hope so anyway. You will see there that it includes NBC clothing and enhanced combat body armour, the very sorts of personal equipment you are talking about.

  Q88  Mr Davidson: So we can be satisfied that the issues that we identified last time will not occur again.

  Sir Kevin Tebbit: Nobody can be absolutely certain in a business which is about managing risk and taking risk, which is what security, combat, warfare are about. What you can be certain about is that the Department has taken very, very robust steps to manage these risks and to reduce them.

  Q89  Mr Davidson: Can I be satisfied that next time, if the equipment has been pre-ordered, it will actually get from the back to the front and that you have the systems to track and distribute materials? I understand the point you are making there, this is now a slightly different issue about being able to track and identify and follow through and so on. Has that entirely been resolved now?

  Sir Kevin Tebbit: Yes.

  Air Vice-Marshal Leeson: We are now much more confident on that. We have rolled out a system which has a number of stages of improvement still to deliver, but right now, for the Iraq theatre, we can actually track 93% of the equipment delivered to theatre on a routine basis to final point of consumption. It is a good performance and we can make it better.

  Q90  Stephen Williams: May I return to some questions about distribution of resources in between the various services, particularly the Navy. As I understand it, in 2003, or approximately 18 months ago, £310 million was switched out of Royal Navy maintenance effectively to support the Army and the Air Force and it says that some vessels simply had maintenance that was the minimum required just to meet Health and Safety considerations and some environmental safety obligations as well. In paragraph 2.10 on page 21 of the NAO Report, it says that this decline in maintenance funding effectively means that you are building an assumption in the long term that the material state of the fleet will degrade and that will obviously presumably affect readiness levels. As we do not have a representative of the Admiralty here, perhaps Sir Kevin would like to comment on that?

  Sir Kevin Tebbit: You do not have one of course because the Admiralty no longer exists; we are one integrated Department. The first thing I ought to say is that that was a judgment of relative priorities that was taken by the Defence Management Board on which the Chief of Naval Staff sits and it was a collective judgment taken by us in the way we have to take all sorts of decisions of this kind. We have one limited amount of resource, we have a budget growing at 1.4% real, which is good for defence but is not that impressive considering how costs are moving in the economy as a whole. We have to decide where we have to prioritise resources to meet the most important tasks, contingencies which arise. We made a collective decision, to which the Navy subscribed fully, that the right thing, given where our force structure was most stretched, was to focus resources in this area on the Army for their recovery from Operation TELIC and for the upcoming operations which were seen to be of the most importance. Firstly, continuation of the task in Iraq and secondly, preparation for doing more in Afghanistan whilst sustaining what is going on at the moment still in the Balkans and with standing commitments such as Northern Ireland. Similarly the Air Force has tasks in those areas too. It was felt that at this particular stage, things were easier for the Navy. That does not mean to say that this was easy or welcome: it means that there is still enough in the Navy allocation to meet their tasks. So far none of the operational commitments of the Navy has been missed. It means we have to keep this carefully under review, so that we do not see the red line in the Report emerging, but we review the position next year and ameliorate. We have already given some amelioration to the Navy where things have looked as though they could have come unstuck if it had continued that way. They were not major amounts of money, but there have already been two injections of additional resource to help where the shoe pinched. Yes, but it was a prioritisation decision and it will only become seriously damaging if it prolongs into the future in the way the red line shows, but if the blue line is the one that is chosen, then it will ameliorate after 2006 up to 2008.

  Q91  Stephen Williams: Does this degradation in the fleet affect all vessels or is it just targeted at particular vessels, surface vessels, submarines?

  Sir Kevin Tebbit: No; the vessels which are most critical for achieving the tasks are protected. Those which are less critical have a reduced level of support. For example, all the submarines are completely protected because the deterrent is a number one priority still and nothing changes there. With the destroyer and frigate fleet, then it depends on what tasks they are engaged.

  Q92  Stephen Williams: You referred in the answer to my first question to additional units of resource in 2005 and 2006.

  Sir Kevin Tebbit: In 2006, not 2005.

  Q93  Stephen Williams: It is anticipated to come back to normal in 2006, is that right?

  Sir Kevin Tebbit: Normal is a word I could not use at this stage. It will be reviewed carefully and the level that will be decided on will be chosen then. The way in which the Navy is managing this is on the basis of outputs and effects. In other words, they look at their tasks, ensure that they can meet them and move the resources around in their support accordingly. So it means that this particular vessel is targeted for a second class life, it means active management of a reduced level of support across the fleet.

  Q94  Stephen Williams: Given that you said there were extra resources in 2005, were they shifts again within your overall department budget from the Air Force and the Army, or were they additional resources.

  Sir Kevin Tebbit: No, I would not put it like that. Within a budget of £27 billion, we do have some flexibilities, but this year, for example, the extra cost of fuel for the Armed Forces as a whole is not less than £100 million, so this obviously gives you the sort of shifts that we have to cope with on a normal basis.

  Q95  Stephen Williams: So are you saying there were other factors which in fact outweighed this switch in maintenance budgets in those two years?

  Sir Kevin Tebbit: Sorry which two years are we talking about?

  Q96  Stephen Williams: I was asking about 2004-05 and 2005-06.

  Sir Kevin Tebbit: When I was talking about the small adjustments. The smaller budget; no, that was a different point. I do not necessarily take the advice of my advisors, but I usually do. I would have thought the shift of resources in favour of the Navy against the savings that were taken earlier would have been about £50 million, that sort of figure.

  Q97  Stephen Williams: May I look at the effect this shifting around of money and priorities has on your suppliers? On page 22, paragraph 2.11 does rather suggest that the impact of these switches on the defence industry effectively is not properly considered. Is that a fair comment, do you think?

  Sir Kevin Tebbit: I do not think that is right. Clearly, we do have to veer and haul resources according to circumstances and the outputs we achieve for defence, which is our number one priority. However, it is increasingly recognised that to do that we need a closer relationship with industry and better partnering with industry where it is good value for money. We are about to bring out a Defence Industrial Strategy in December which will have, as one of its important elements, this issue of giving industry a clearer long-term view of where we will need them and where we will need less of them, so they can plan their own loadings accordingly. The sorts of shifts we are talking about here are relatively tactical; they are not strategic. The really big issues are about the partnering we are now doing for the whole of our repair and maintenance work, whether it is land fleets, vehicles or the air fleets, for example. This is one of the most important elements of the logistics transformation programme, so I should say the relationship within industry is getting closer rather than weaker. If you look at our change programme, where we are creating efficiencies in logistics of £2 billion up to 2011, a lot of that is being done by smarter partnering with industry to reduce the costs of support and maintenance, faster turnaround times in repair loops, so that planes are being serviced for shorter periods than before and you have more availability of the fleet as a whole; true of armoured vehicles as well.

  Q98  Stephen Williams: Paragraphs 2.24 to 2.29 actually flesh that out in rather more detail and paragraph 2.28 mentions Iraq and the supplies that were needed there. It says "102 of the 194 urgent operational requirements". Those are the only figures for which you were able to supply the data. "Of the 102 acquisitions for which data was available, 77 were required to be ready for use before war fighting began" in Iraq. "Of these, 53 were fully delivered, fitted and usable in time while, in a further 19 cases, part quantities had been delivered, fitted and were usable", which builds on what I was saying earlier. What sort of work does the Department do to assess the risk that an industry will not be able to supply the equipment that all the Services need in order to meet the Government's defence objectives?

  Sir Kevin Tebbit: We are covering the same ground as we have done earlier, but I am happy to continue to do so because I am answering your questions rather than those of another Member of the Committee. Firstly, on the information question, we used to gather information on an exception basis. In other words, with urgent requirements of this kind we tended only to gather information which needed action, that is to say it had not arrived; a negative reporting system. We have accepted that we should cover all of the urgent operational requirements under one system, so in future we shall have data always available on whatever is happening. Secondly, if you actually drill into these figures, even about TELIC, you will find that the position was actually much more positive than this because this does not take account of those requirements where you only needed part of them actually to begin the operation. A lot of them would be needed for sustainment over a longer period of time and could arrive anyway throughout a longer period. In fact, 93% of those items that were required for the start of war fighting were in fact delivered. To your point: since then, as part of the 2005 logistics support and deployability audit, all of the Integrated Project Teams—and that is how we manage logistics and equipment programmes—have been tasked to express the level of confidence they have in industry's capacity to meet the assumptions which are there about delivery times and if there is a gap between the assumption and what industry is now telling us, to consider amending the contracts so that we can be sure that we get the stuff in time.

  Q99  Stephen Williams: May I switch to the effectiveness, the stretching the Army has on other objectives. This is on collective training which is referred to in paragraph 2.5, which says "The Army's current commitments to operations also means that some peacetime activities, such as collective training for roles not employed in current operations, has been curtailed. This is further fleshed out in paragraph 2.15 which actually says ". . . the impact of high activity levels is pervasive and results in additional strains on processes, people and equipment". What is the impact of this reduction in collective training, and other matters I have just referred to, on the Army's state of readiness?

  Lieutenant General Sir Rob Fry: It will be much more difficult for us to take on an unforeseen contingent operation now. Bearing in mind the level of commitment we already have, that is not something we are looking to do. The Report very much uses the language of contingencies and I must introduce the language of campaigns here, if only for a few moments. A campaign is different from a contingency in so far as it runs on for a period of time and you generate forces against the requirements of that theatre, rather than against a generic requirement and that is the situation currently in Iraq. Now clearly that is the operation which is the clear and present danger and we must try to resolve that, therefore we need to concentrate our force generation issues there. This does have a knock-on effect more widely, particularly in the land ORBAT, but what it does not do in any way is prejudice the conduct of our campaigns in the Balkans, in Afghanistan or in Iraq; indeed those are specifically preserved. What it does make more difficult is retaining a body of forces which could now discharge an entirely unforeseen contingency.

  Sir Kevin Tebbit: And that is why we are quoting readiness levels, the main purpose of this Report , lower than the 100% which they otherwise would be. In other words, the main reason is that because of the high tempo of operations in excess of our planning assumptions two years ago and the fact that since then we have remained at a very high state, inevitably what you might regard as that bit of the perfect readiness which should be there is actually up in those operations in the real world and is not available for perfect contingency minding for the rest of the structure. Indeed I should be surprised if it were, because if it were, people would say either we did not need so much money for defence or we should be having even more ambition.


 
previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2006
Prepared 28 February 2006