Select Committee on Defence Minutes of Evidence


Examination of Witnesses (Questions 160-179)

PROFESSOR SIR ROY ANDERSON, MR TREVOR WOOLLEY, MR MARK PRESTON AND DR PAUL HOLLINSHEAD

28 NOVEMBER 2006

  Q160  Chairman: Professor Anderson, could you give us the figures that I asked for, please, in writing?

  Professor Sir Roy Anderson: Yes.[4]

  Q161 Chairman: Would you regard us as people who are likely to try to help you in your battle with the person on your right. If you can give us some idea of the extent to which other defence research has suffered because of our concentration, as David Borrow was asking, on the immediate theatres of war and therefore our investment in the longer term has suffered, then it might be a good thing not only for you but for the country.[5] Could we move on, please, to the management of defence research and technology. The NAO made several recommendations in its 2004 report. I wonder whether those recommendations have been implemented, or to what extent they have been.

  Professor Sir Roy Anderson: Providing clearer technology and strategy, we have already talked quite a bit about the defence technology strategy and that is a clear objective there. The management side of research I think has, as I understand it, given that I have been in his post two and a half years, has improved greatly and the intimacy of the relationship strategically between Whitehall and Dstl and the customers about deciding what your priorities are for research, both in relation to your question, what you would like soon, what you would like in three to five years, what the capability need is in 15 years. I think that planning is improving although there is more to do. If we take the metrics for R&D, one of my other, almost an obsession, is that we should have accurate databases on precisely what our R&D expenditure is at any one time, and these databases should not only include the bare facts, but they should have things about the detail of what the result of that research was, whether there is IPR associated with it, who is responsible for following that IPR, etc, etc, and what publications, what reports have arisen out of it. We have just constructed a database called STRIMS, which is a Science and Technology Research Management database, and this I think is going to pay great benefits into the future although it will not pay benefits instantly. That provides metrics for R&D and what you got for it, basically. If we take the expertise and the role of the TLB and Dstl, I suppose, in the spirit of your previous comment, Chairman, I always am concerned about the scientific expertise within government, largely because we recruit very bright and able people, and I have been hugely impressed by the intake, and then we have lost the old science and technology streams in the civil service, where somebody could end up at a high level within the civil service being a deep specialist. The Ministry of Defence is very actively discussing this at the moment in the context of or in relation to the establishment of a new agency, the merger of the DPA and the DLO, and how we sustain specialist expertise lines for engineers and scientists. We have appointed head of professionals in both. There is a lot to do but it fits in with the broader government objective with the Cabinet Secretary about specialist skills in government. If I am blunt, I think it was a mistake getting rid of the specialist science and technology careers stream. I think you had technology demonstrator programmes and technology exploitation. The demonstrator programmes is something we are very much thinking about how best to fund this with industry. We have a very high emphasis on technical demonstrators and sometimes, in relation to your comment about timescale, I could quote one which from concept to the demonstrators about a year, which is very pertinent to an operational theatre.

  Q162  Mr Hancock: Lord Drayson told us it was his intention back in February to have greater competition in research and development. It has taken some time to get that moving. What is your feeling on that and are there targets have been set for what will be sent for competition and what will not and how will the decisions be made?

  Professor Sir Roy Anderson: We have a stated target, and it is published in the Defence Technology Strategy, of competing about 60% of our total R&T funds, that is the £500 million.

  Q163  Mr Hancock: By when?

  Professor Sir Roy Anderson: By 2009, and we are ramping that up at the moment. If you are thinking about that sum of money and you want to do this properly, where you have adequate peer review, you have to create an infrastructure to do this carefully. I am very keen on the open competition side because, as I mentioned earlier, I think in fast-moving areas of technology a lot of the innovation comes out of the universities and small companies. I also, with Lord Drayson's approval, commissioned a study, which will be published quite soon: where does innovation come from in the technology defence industry? At the top you have the big primes, then you have the medium-size companies, many of the small ones at the bottom and perhaps the university spin-out groups at the very bottom of this pyramid or food web. In that study we have looked at 36 technology trees in a great deal of depth and, unsurprisingly, a lot of the really innovative bits come out at the bottom. The top is still crucial, because they have the skills of system integration and defining the capability requirement. So the top is absolutely essential but we need to think about how we target some of this money, or the competition side, to make sure that we do not exclude small companies, who are often less agile and less informed.

  Q164  Mr Hancock: How would they be able to afford to take part in the competition that you are devising? Will this inevitably mean that there will be prime players in the research and development who in turn will systematically downstream the resources?

  Professor Sir Roy Anderson: There are two strategies to this. This is a slightly different approach so I will answer this in two parts. In the past, we have always felt we knew what we needed in technology and therefore we put out calls for people to bid for X, Y and Z. I am very keen that we actually also ask the community "Do you have interesting areas of technology that might have important defence and secure at security implications, not necessarily immediately but some time in the future?" All a small company has to do there is get on to the website, write half a page and say, "I have got this. It is terribly exciting" and then somebody from the Research Acquisition Organisation will go down and see them.

  Q165  Mr Hancock: So why did they tell us when they gave evidence that there was a problem in knowing what you wanted and how to go about getting part of the action?

  Professor Sir Roy Anderson: Fair comment. I think in the past we have been less transparent than ideal, and our relationships with the big primes are the strongest, so they are always very well informed but, if you look at the real powerhouse of innovation in the UK at the moment, it is often in those small companies. In October we launched the Defence Technology Strategy website up and running with the competition of ideas. I spoke to 600 people last week from the small and medium-sized company end to tell them, with the Director of the Research Acquisition Organisation, Andrew Baird, how to do it and we will be as synergistic or encouraging as we possibly can be. The universities are another bit of this.

  Q166  Mr Hancock: I think it is vitally important, and it is great news that we have got that far. Maybe that will go some way to address the criticism they brought to us when they gave evidence on it. What do you see as any potential downsides and how do you play a part in protecting us from a decline of that interest from the small players?

  Professor Sir Roy Anderson: As I said, we have not been as good as we should have been perhaps in nurturing them. We have not recognised that a lot of the innovation comes from that end. Now that we have finished a study of technology trees, innovation trees, we now have hard numerical data on the different types of capability or technologies, where the really innovative bits come from. Now we have that in front of us, which is very recent, that gives me a firm basis from which to say we have to spend a lot of attention on these companies and the spin-out groups in the universities. Sometimes they will do it with partnership because a company such as QinetiQ or BAe Systems could quite correctly argue that they know us as the beast much better and therefore if a small company collaborates with them, they are more likely to be successful in the research bid, and some of that will go on, I am sure, but as this community sees us as a more friendly, interested customer, I am hopeful.

  Q167  Mr Hancock: The French now have a pot of money which people can bid for for carrying out specific research that they themselves have generated, which they have persuaded the French Ministry to support in one way or another, with possibly no chance of it ever coming to success, but hopefully it will. Are we going down a similar route?

  Professor Sir Roy Anderson: We are doing two things. I said there was a competition of ideas: as one of them, going out to them. Also, again via the website, and the Research Acquisition Organisation, we are going to compete 60% of the £500 million. This competition will be rather like writing a proposal. It can be detailed or it can be a short inquiry, and the Research Acquisition Organisation's responsibility is to sift these and to look for the interesting ideas and the well-written proposals. I may be biased because this has been a big hobbyhorse of mine, but I think we have been doing more at the moment than we have ever done before and we are going to do more and more.

  Mr Hancock: That is good news.

  Q168  Mr Jenkin: We have heard quite a lot about Dstl's role from Frances Saunders already. Is there anything you want to add from a strategic point of view, from your oversight point of view, to what Dstl's role is?

  Professor Sir Roy Anderson: One thing that is not commonly realised—and Frances hinted at it to fire a question concerning polonium 210—is that Dstl is vital to this country, not just in defence but in many security areas. It provides deep technical expertise. It is not ever in the public eye. It might be the Home Office and others who take the lead, correctly, but the technical backup for this lies often, very often, in Dstl. So it is something we need to nurture and sustain and look after, in my view.

  Q169  Mr Jenkin: You do not feel the work that DERA used to do is compromised in any way by losing quite a lot of the intellectual property to the private sector?

  Professor Sir Roy Anderson: In the areas that are particularly important in the security and counter-terrorism and counter-insurgent areas, I think we have kept the areas of expertise that we need because these are very sensitive. We have already mentioned the IED areas, we have mentioned biological and chemical weapons, detection, counter-measures, protective suits, explosive forensics, etc, a whole pile of areas at a AWE in radiological detection and clean-up—those have been sustained within government control through Dstl.

  Q170  Mr Borrow: The jewel in the Crown, as you described Dstl, you are obviously very pleased with its performance, but do you have no concerns at all?

  Professor Sir Roy Anderson: One of you asked a question to Frances about physicists. I have concerns about university entrants and graduation in physics, engineering, mathematics, computer science, etc. These are all highly competitive fields in the civil sector. We rely on very good people here, so we will feel the effects in the future in recruitment in what used to be called the hard sciences—it is a bit of an insult actually to other areas. They are mathematics-based sciences often. We will feel the effects. I could recruit from Ukraine and China bucketfuls of mathematicians and engineers at the drop of a hat but, of course, as you hinted earlier, we cannot do that in security sensitive fields I think we are part of a larger effort through the Academy of Engineers and the Royal Society, which we have very intimate and good relationships with, and we have all got to strive to raise the excitement and stakes for being a scientist and an engineer. As Frances mentioned, a lot of young people get very motivated by contributing to security and defence.

  Q171  Mr Jenkin: On the narrower question of Dstl's actual performance, are its targets stretching enough? Are there additional targets which it should be given?

  Professor Sir Roy Anderson: I am new to Government targets so I might not have a good understanding of this. We are constantly evolving these targets in a learning experience with an agency. I want to come back to one of your earlier questions. The other slight concern I have—in a spirit of honesty here about it—

  Q172  Chairman: That is always relieving to hear!

  Professor Sir Roy Anderson: —Government departments are often in a cycle of customer knows best-driven research and I will make the point that we have gone through that cycle quite quickly and we have now orientated Dstl's work very much to customer needs. I do place the caveat that saying that the customer knows best in fast moving areas of technology and science is wrong. You must sustain a proportion of your activity, which is young people who have got a fascination with fields of science where, independent of the customer need, they can see very exciting things to do. We are evolving and iterating the balance between that at the moment. I think the Defence Technology Strategy hinted that we are looking to perhaps slightly increase the proportion which is not so customer-driven but is more inquiry enthusiasm-driven.

  Q173  Mr Jenkin: What proportion of the budget is that?

  Professor Sir Roy Anderson: At the moment it is probably about—I should give you a more exact figure here—10% or so, something of that nature. Remember, to the very good scientists in Dstl the board there gives them incentives. To keep the very best you might have to say, "Four days a week you work on the customer problems but one day a week you can pursue your inquiry and inquisitiveness", so you can keep a more basic research programme going. In discussion with the Dstl board we need to think about all sorts of incentives for encouraging that.

  Q174  Chairman: In a spirit of honesty, Professor Anderson, you gave the impression just now, in answering about targets, that you thought in this field anyway essentially they were a load of drivel. Would you be able to confirm that is your view in a spirit of honesty?

  Professor Sir Roy Anderson: I think that inference would be wrong. I am not an expert here and, Trevor, you are far more experienced in setting targets.

  Mr Woolley: Clearly some of the targets are harder than others. Some of the more qualitative targets in this area are inevitably going to be difficult. I do think, though, it is important, as part of the governance of trading funds, that the owner of the trading fund does set targets on the agency, and this is what we do. The targets are evolving. We are trying to reduce the number of targets to try and make them a little more relevant and in some respects they have got tougher over the years.

  Q175  Chairman: I will take that as a financial answer rather than a scientific answer.

  Mr Woolley: I would like it to be taken as a governance answer rather than a scientific answer. There is a financial dimension. Obviously the interest of the Department as owner is only partly financial, it is also to ensure we get the best quality out of the agency, and the targets are aimed at quality as well as financial return.

  Professor Sir Roy Anderson: Chairman, can I correct one figure? I said 60% of 500 million were going to compete; it is 60% of 410 million. I apologise and would like to correct the record.

  Q176  Linda Gilroy: On the role of Dstl, an emerging argument of those who have difficulty in appreciating the merits of a nuclear deterrent is that climate change needs scientists who are in scarce supply. How does that argument look from where you stand as the Chief Scientific Adviser to the MoD? Given that climate change and energy security have got strategic defence relevance, presumably there is cross-departmental discussion amongst scientists on these issues?

  Professor Sir Roy Anderson: Yes, very much so. David King takes the lead in DTI and the Office of Science and Technology, but I asked DSAC, which is our Defence Science Advisory Council, about a year ago to produce a report about their assessment of what climate change predictions could do, or the implications for the MoD, in particular thinking about certain areas of procurement because we are thinking now about procuring for 15-20 years ahead. If you take issues such as helicopter lifting, high temperatures, cooling systems for land vehicles, protection gear and clothing, there are huge implications for us. It is a very, very active area of thought at the moment. I would not be telling the truth if I said it had entered heavily into our procurement thinking, but from the science and technology end it is a very active area of thought.

  Q177  Linda Gilroy: In terms of the supply of scientists?

  Professor Sir Roy Anderson: Of what global warming might imply for us as a defence activity. The supply of scientists is more a Met Office issue. The Met Office attracts very good quality people. If you talk to graduates now, climate change is something they are all aware of and if they can work in that field they get quite excited. Increasingly climate change models now have the environment and biological component. If you are talking about physics and high-end computing, perhaps there are problems.

  Q178  Linda Gilroy: In the competition between the two areas?

  Professor Sir Roy Anderson: No, in competition with the civil sector. Business high-end computing people are highly desirable in a whole variety of areas of employment.

  Q179  Chairman: You talked a bit about the supply chain, what about international collaboration in defence research? Would you care to answer about whether we are getting enough from the United States in relation particularly to Joint Strike Fighter?

  Professor Sir Roy Anderson: First of all, in relation to the previous comment, if you look at my facts earlier, the United States produces a very high proportion of the total science and technology output today. Scientists are there to try and solve technical or understanding problems, and the best strategy, in my view always, is to go to the best people in the world. Science is an international activity, it does not have borders. The web provides this communication instantaneously, so if you have got a problem to solve, you should do your collaboration first on a strategic judgment, in other words who you have a Memorandum of Understanding on, but you should also weigh into this equation technically who is the best in that field. That total international environment for science is changing very rapidly, as you know. There are some fields where China would not even have been on the horizon five years ago. I am thinking, particularly, of signal processing where suddenly countries like China have a significant activity there. We have got to think very carefully over the coming years about how we form these collective Memoranda of Understanding. At the moment they are dominated by our relationship with the United States for very good science and technology reasons because a lot of the very best people are there. That is an evolving area of thought for us. If you take Western Europe as a whole and you sum science output from Western Europe as a whole, then the gap between Western Europe and the United States is closing. Again, we need to think strategically over a 10 to 15 year horizon whether in some areas where there is deeper expertise in Europe, our research collaboration should broaden. That is important to do. With the Joint Strike Fighter, I am not well placed to comment on the detail of that. My own experience is in areas where there is no commercial sensitivity, your comment about black programmes, we get complete access with the United States and a very privileged position in many fields. Where there are commercial sensitivities and IPR issues, then inevitably—and it is the same this side of the Atlantic as the other—there could be acute sensitivities about sharing information with anybody. My understanding of the Joint Strike Fighter at the moment is that we are seeking the same product as the United States. There are very active and ongoing discussions concerning what technical information we require for sovereignty and security reasons and, by and large, those discussions have been going well.


4   See Ev 36 Back

5   See Ev 36 Back


 
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