Memorandum from the Ministry of Defence
SUSTAINING CORE
SKILLS AND
INFRASTRUCTURE
The Ministry of Defence recognises the importance
of maintaining an affordable and viable submarine design and manufacture
capability. Our position was set out in some detail in the Defence
Industrial Strategy, which stated that "for the foreseeable
future the UK will retain all of those capabilities unique to
submarines and their Nuclear Steam Raising Plant, to enable their
design, development, build, support, operation and decommissioning".
At the same time, however, the Defence Industrial
Strategy highlighted serious concerns at the efficiency of the
organisation of the submarine-building industry and the need for
rationalisation. As a consequence, work is proceeding to help
industry deliver an indigenous industrial base that remains affordable
for the procurement and maintenance of submarines and which sustains
critical capabilities. It is our aim that significant behavioural
and structural improvements should be achieved across the MoD
as client, and the industrial parties strategically involved,
ie BAE Submarines at Barrow, Rolls-Royce and Associates, Devonport
Management Ltd (DML) and Babcock Naval Services. In this context,
the Government will require industry commitment to team working,
provision of qualified, skilled and empowered personnel, continuous
improvement in design for best through life cost, and improved
supply chain management.
The submarine industry is currently heavily
engaged in the programme to design and build the Astute class
of submarines. Three vessels have been ordered but the eventual
size of the attack submarine flotilla has yet to be decided. Work
on the Astute programme has done much to restore and sustain key
skills in the submarine industry, although this has come at some
cost. The break between the Vanguard and Astute programmes in
the hitherto continuous process of designing nuclear-powered submarines
in the UK was a significant contributor to the cost increase in
the Astute programme. As the design element of the Astute programme
gradually decreases, the potential risks to future submarine programmes
(should any be required) will increase. Diverting surface ship
design and construction work can help to reduce some risks but
skill fade will occur if submarine-specific skills are not kept
alive. This applies to submarine design and construction skills,
not just specifically to nuclear-related skills.
The maintenance of core skills and capabilities
has also been a key issue with respect to the Atomic Weapons Establishment
(AWE). In a written statement to the House of Commons on 19 July
2005, the then Secretary of State for Defence, John Reid, announced
plans for additional investment at AWE amounting to an average
of an additional £350 million per annum over the period up
until 2007-08. Funding beyond that point has yet to be determined.
This programme will ensure that the effectiveness and safety of
the existing Trident warhead stockpile can be maintained throughout
its intended in-service life in the absence of live nuclear testing
under the Comprehensive Test Ban Treaty. It will also ensure that
we retain a minimum capability to design a successor for the existing
warhead, should one be required and keep our options open in the
meantime.
The programme falls into three broad categories:
upgrading a range of research facilities to underpin the science
that enables AWE to underwrite the safety and performance of the
warhead; refurbishment of some of the key infrastructure on the
sites; and investment in sustaining core skills within the Establishment.
To achieve this, major investment in manpower and facilities will
be necessary including the replacement of many of the major science,
manufacturing and assembly facilities at AWE's two sites at Aldermaston
and Burghfield. Details of the programme were set out in the memorandum
sent to the Defence Committee by the Ministry of Defence in November
2005.
THE DEFENCE
INDUSTRIAL STRATEGY
AND THE
LINK TO
TRIDENT REPLACEMENT
The Defence Industrial Strategy stated that
the UK would retain all those capabilities unique to submarines,
including the Nuclear Steam Raising Plant, "for the foreseeable
future" (B2.18). It also stated that the submarine design
programme would ensure options for a successor to the current
Vanguard class deterrent would be kept open in advance of eventual
decisions (B2.63).
As we have made clear in the Defence Industrial
Strategy, we would expect that any commitment by the Government
to a long-term submarine build programme would be matched by a
commitment by industry to rationalise and reduce costs. There
is much to be gained from cooperation and rationalisation between
the build entity (principally BAES at Barrow-in-Furness), the
two support entities (Devonport Management Ltd and Babcock Naval
Services at Faslane) and the Nuclear Steam Raising Plant provider
(Rolls Royce), together with the Ministry of Defence as the customer/operator.
Potential benefits from such cooperation and
rationalisation include the removal of overcapacity and overlapping
competencies, avoidance of duplication, application of common
processes, spread of best practice, more efficient procurement,
supply chain management and sharing of knowledge and information
across the enterprise—all leading to behavioural change
and the potential for significantly improved enterprise performance
and affordability. Transformed commercial arrangements are required
to incentivise and deliver these benefits. Cooperation of this
type is already being pursued to improve affordability and performance
for in-service submarines and for the Astute programme.
In considering the future of the submarine industry
we also need to take account of the requirement to service our
current commitments (Astute class build, and support and disposal
for Swiftsure, Trafalgar, Vanguard and Astute classes).
THE NUCLEAR
SKILLS BASE
IN THE
UK
The Atomic Weapons Establishment (AWE) has a
strength in depth in nuclear science and engineering which is
rare elsewhere in the UK. The average age of the workforce at
AWE had been increasing, as the generation recruited to meet the
initial requirements of the Chevaline and Trident programmes reached
the end of their careers. There was therefore a requirement to
recruit new members of staff to ensure that the core skills within
AWE are sustained. Other new staff will be required to assist
the infrastructure sustainment programme and also to operate the
new facilities as they come on stream. AWE has therefore been
undertaking a programme of recruitment: last year a total of 415
new staff were recruited, including 94 scientists, 196 engineers
and 49 technical support personnel. It plans to recruit in the
order of 90 scientists, 150 engineers, and 50 technical support
personnel this year and similar numbers in 2007-08.
The areas of expertise are diverse, and will
include chemistry, computer science, materials science, nuclear
physics, chemical engineering, manufacturing, metallurgy, electrical
and electronic engineering, mechanical engineering, assurance,
laboratory support, and IT/telecommunications. To date, this recruitment
process has proceeded very well, with sufficient numbers of high
quality staff being brought into the Establishment. The availability
of sufficient suitably trained graduates has in part resulted
from the fact that AWE, along with other institutions, including
the civil nuclear industry and Universities, has developed new
educational courses in this area, up to and including doctorate
level.
Nuclear expertise in the civil nuclear industry
does not currently underpin the defence nuclear knowledge and
skills base to any significant degree. Although there is some
interchange in specialist areas, there is limited cross-fertilisation
between the sectors. One reason for this is that the UK Atomic
Energy Authority has not developed Pressurised Water Reactor (PWR)
technology (which is used in nuclear-powered submarines) for civil
use: only Sizewell B is a PWR, but it incorporates a commercial
Westinghouse design. There is some exchange of engineering and
scientific knowledge, particularly in the field of metallurgy,
but this is limited by security constraints, type of plant and
differences in operation (propulsion versus power generation).
The remaining civil nuclear sector is now focussed on providing
handling and disposal facilities for radioactive material.
The limited supply of suitably qualified engineers
and scientists is more of a problem. With the end of the Vanguard
Class build programme in the late 1990s and a reduction in research
and testing and forward design work, Rolls-Royce Submarines (which
manufactures the nuclear propulsion system installed in Royal
Navy submarines) reduced the number of engineers and scientists
it employed. More recently, as activity has picked up again with
the Astute Class build programme, a chronic shortage of high quality
engineers and scientists emerging from UK universities has led
to key skills shortages within the company. This UK skills gap
affects many engineering disciplines, but the lack of physics
graduates is proving to be particularly difficult to overcome.
The 1958 Mutual Defence Agreement with the United States means
that only UK nationals can be employed on the naval nuclear propulsion
programme. Therefore, Rolls-Royce Submarines has now developed
links with UK universities and is developing links with schools
in order to promote the necessary skills.
23 October 2006
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