Supplementary memorandum from the Ministry
of Defence
(i) The split between equipment and
non-equipment costs in the MoD budget
Defence expenditure is structured by Top Level
Budget, rather than by equipment and non- equipment spending.
Nevertheless, within anticipated core Defence expenditure for
2007-08 of around £29.5 billionn (near cash), around £12.5
billion is for equipment and equipment support. This does not
include expenditure on Urgent Operational Requirements, which
is covered separately by the Treasury Reserve.
(ii) The data for MoD staff morale
for the last two periods in which the data was collected
Our civilian staff survey shows that dissatisfaction
with MoD as an employer has increased by about 5% over the last
year (from an average of 14% in 2006-07 to 19% in the summer of
2007). The number of staff giving a clear positive response has
declined by a similar amount (from 59%-55% when expressed on a
comparable basis)[11].
This decline may reflect the degree of turbulence in the organisation
and concerns over pay. Over the same period the proportion of
civilian staff saying they are proud to work for Defence has remained
steady at around 70%.
|
| Period of Survey | Percentage positive response
| Percentage negative response |
| Summer 2007 | 55% | 19%
|
| 2006-07 | 65% (59% if weighted on same basis as latest survey)
| 14% |
| | |
(iii) Details of the main areas/elements which contributed
to the £2.8 billion efficiency savings achieved during the
2004 Spending Review period
The MoD remains on course to meet the 2004 Spending Review
£2.8 billion efficiency target by the target date of 31 March
2008. The MoD's Efficiency Technical Note describes the Efficiency
Programme in detail and explains how we are delivering and measuring
the efficiency gains. By 30 September 2007, £2,506 million
of efficiencies had been achieved, comprising £254 million
through force structure changes, £134 million from corporate
services, £1,201 million from Procurement and Logistics,
£51 million from productive time, £2 million from organisational
changes, £18 million from relocation, £479 million from
manpower, and £479 million from assumed re-achievement of
2006-07 in year efficiencies, offset by £112 million to avoid
double counting of manpower savings. A detailed breakdown and
explanation is contained in the Ministry of Defence Autumn Performance
Report 2007, laid before Parliament on 17 December 2007. The Efficiency
Technical Note and Autumn Performance Report, together with the
previous Spring and Autumn Performance Reports and the Annual
Reports and Accounts for 2005-06 and 2006-07 setting out progress
against this target since April 2005 are available on the MoD
website at www.mod.uk.
(iv) The further action the MoD is planning to take
to increase black and ethnic minority representation in the three
Services, and in particular to address the problem of black and
ethnic minority recruitment in the RAF
The Department has set a goal that by 2013, the Armed Forces
will have 8% ethnic minority personnel within their ranks, and
there is substantial reporting on this contained within the Annual
Report and Accounts. Over the last year (1 October 2006 to 1 October
2007), the proportion of members of the Armed Forces from ethnic
minority backgrounds has increased from 5.7 % to 5.9% of total
strength. Although recruitment outcomes are still short of requirements,
this is not for want of effort and the quality of the Armed Forces'
programmes is reflected by the consistently very high ranking
they are awarded by external assessors. In 2006 the Army and RAF
received Gold Awards from the Opportunity Now scheme. The Royal
Navy did not participate in 2006, but received a Silver award
in 2005. In the Race for Opportunity scheme, the Army came top
among public sector organisation for the sixth consecutive year,
the RAF third, and the Royal Navy fifth. More detail on these
programmes is set out below. In addition to the work carried out
by the three Services individually, there is also a harmonised
tri-Service programme to improve communications and to build up
the reputation of the Armed Forces amongst ethnic minority and
religious communities. This includes research on how best to inform
these communities and engages in top level communications with
religious leaders.
ROYAL NAVY
The Royal Navy has four Diversity Awareness Teams based in
London, Manchester, Birmingham and Plymouth. They raise awareness
of Naval careers, the profile of the RN amongst community leaders/gatekeepers,
and recruit from among ethnic minority communities. The wide programme
of events (130 separate events for 2007) range from school, college
and community visits, to major ethnically centred events, gatekeepers
visits and extended campaigns in focused areas such as Leeds,
London and Birmingham, which climax in an RN Experience Day for
large numbers of students in those areas. A drive to improve the
way that the wider RN recruiting field force engages with ethnic
minorities is being scoped and will commence early in 2008. The
main focus will be to steer recruiting away from a small, dedicated
team that can maintain a limited footprint across the UK to helping
Naval recruiters develop the relationships with their local communities
that the Awareness Teams have created. The Awareness Teams will,
therefore, over the next two years, move towards a mentoring role
for local recruiting staff and away from organising their own
outreach events.
ARMY
The Army's Diversity Action Recruiting Team provides role
models at ethnic minority recruiting events throughout the country.
Community Liaison Officers develop relationships with "influencers"
in communities in their respective regions. The Army has focused
its resources to establish "main effort" in London,
West Midlands and the East of England to reflect the larger resident
ethnic minority populations. They also ensure that all marketing
campaigns take account of diversity and inclusivity factors, in
order to engage better with UK ethnic minority audiences. Other
initiatives include:
— Development of a direct marketing and outbound
contact programme to target UK ethnic minority "interested"
youngsters.
— Encouragement of ethnic minority communities to
contemplate and work towards "enlistment cohorts", to
join Phase 1 training to provide mutual support to recruits from
different UK ethnic minority groups and faiths and provide "critical
mass" for future recruitment.
— Greater use of the Territorial Army to develop
community and individual contacts particularly in areas of high
UK ethnic minority population as the home based nature of the
TA holds more appeal to UK ethnic minority potential recruits.
— In recognising that diversity recruiting is everyone's
business, improved training and education of recruiting staffs
with a reduced reliance on external consultants.
— Creation and use of mini "We Were There"
exhibition boards for Community Liaison Officers to use in community
events for engagement with young people from ethnic minority communities
and perception changing work.
— Review of the scope to incorporate the Muslim
hijab as part of the Army uniform.
In addition, the Army will in future make greater use of
trend analysis to help focus efforts on particular communities,
provide accredited training for diversity Subject Matter Experts
to develop in house diversity support, and develop further partnerships
in the regions between Community Liaison Officers and Youth Workers.
ROYAL AIR
FORCE
The Royal Air Force's Motivational Outreach Team is responsible
for promoting the Service in major ethnic minority communities.
Their work is augmented by Community Careers Liaison Officers
and a network of Youth Activity Liaison Officers across the UK.
The RAF has an holistic approach to marketing RAF careers, much
of which is delivered on-line accessing the target audience, through
a variety of websites. The RAF Web based club "Altitude"
attracts ethnic minority youths directly with 4.5% of the 10,418
members declaring themselves as ethnic minority. In addition to
the holistic the marketing approach, the RAF continues to use
ethnic minority focused media, including niche ethnic minority
advertising aimed at influencers and gatekeepers as well as the
target audience of potential recruits. The RAF also maintains
ethnic minority outreach teams at an annual cost of some £540,000.
Ethnic minority role models are integrating into communities,
whose knowledge of the RAF is generally poor, positively selling
the extensive provisions to support cultural, faith and dietary
requirements within the RAF, motivating youngsters through their
outreach activities and proactively advertising the RAF. The RAF
also maintains part-time Community Liaison Officers costing a
total of about £190,000 a year at RAF Cottesmore, RAF Cosford,
RAF Brize Norton, RAF Odiham and RAF Leeming, to host visits by
young people, particularly those from an ethnic minority background,to
experience RAF life. Marketing investment costing some £860,000
a year in youth basketball and football sponsorship in Scotland
and England is specifically aimed at reaching ethnic minority
youth and inner cities, reaching about 37,000 young people through
football and 13,000 through basketball, together with about the
same number of influencers and gatekeepers. The RAF is reviewing
ethnic minority candidates' experience to identify any issues
to be addressed or lessons learned, and in particular how ethnic
minorities perceive the system. A candidate opinion survey was
conducted between Sep-Nov 2007.
The RAF is now introducing Area Outreach Managers into the
seven key recruitment areas to enhance coordination of outreach
programmes, improve planning and to measure success. Two groups
of Motivational Outreach teams are to be based in the Birmingham
and Manchester areas to concentrate output in what have traditionally
been the most productive areas, with satellite ethnic minority
personnel in Leeds and London. Historically, Motivational Outreach
Teams have concentrated on raising awareness in a wide age bracket.
However, as a result of planned increases to "Into Training
Targets", their activities will now focus on a target audience
that is eligible or will become eligible within 12-18 months.
The role of the Motivational Outreach Team requires specialist
skills, not normally found within the average member of the RAF,
to deliver activities, predominantly, to a broad cross-section
of school children. A bespoke Motivational Outreach Team training
package will be delivered early in 2008 which will form part of
the official pre-employment training for all Motivational Outreach
Team personnel in addition to the standard five week RAF Recruiting
course. There will also be regular engagement with RAF Manning
staffs to ensure that a tour as a Motivational Outreach member
is seen as beneficial, in order to attract quality candidates.
The RAF is also introducing Youth Leadership Camps across
the country. These will offer an unsurpassed opportunity for aspirants
to "get to know" the RAF and its ethos. So far 20 bids
have been received to hold camps next year. Over 40 serving ethnic
minority personnel have been identified as role models who can
be involved in these camps as well as pre-arranged visits to RAF
bases, organised by Community Liaison Officers.
(v) The current percentage of black and ethnic minority
representation in each of the three Services distinguishing between
black and ethnic minority Service personnel from the UK and those
from the Commonwealth
The information requested is set out in the table below.
UK Regular Forces as at 1 October 2007 by Ethnicity and Nationality
| Total |
UK National | Commonwealth
| Other | Unknown
|
| Number | %
| Number | % |
Number | % | Number
| % | Number |
% |
| All Services | 188,490
| | 177,500 |
| 7,400 | | 370
| | 3,210 |
|
| White | 163,920 | 94.1%
| 160,980 | 97.4% | 1,080
| 15.1% | 280 | 82.7%
| 1,580 | 97.6% |
| Ethnic Minority | 10,360 |
5.9% | 4,230 | 2.6%
| 6,040 | 84.9% | 60
| 17.3% | 40 | 2.4%
|
| of whom black | 6,070
| 3.5% | 780 | 0.5%
| 5,270 | 74.0% | -
| 1.2% | 20 | 1.1%
|
| Unknown | 14,210 |
| 12,290 | | 280
| | 40 | |
1,600 | |
| Naval Service | 38,550
| | 37,370 |
| 570 | | 60
| | 550 |
|
| White | 34,550 | 97.2%
| 34,080 | 98.3% | 120
| 23.4% | 50 | 100.0%
| 300 | 95.9% |
| Ethnic Minority | 990 | 2.8%
| 600 | 1.7% | 380
| 76.6% | - | 0.0%
| 10 | 4.1% |
| of whom black | 430
| 1.2% | 110 | 0.3%
| 320 | 64.2% | -
| 0.0% | - | 1.3%
|
| Unknown | 3,010 |
| 2,690 | | 80
| | 10 | |
230 | |
| Army | 105,880 |
| 96,600 |
| 6,780 | | 280
| | 2,210 |
|
| White | 90,660 | 91.4%
| 88,410 | 97.0% | 950
| 14.4% | 200 | 77.9%
| 1,100 | 98.1% |
| Ethnic Minority | 8,480 | 8.6%
| 2,770 | 3.0% | 5,630
| 85.6% | 60 | 22.1%
| 20 | 1.9% |
| of whom black | 5,420
| 5.5% | 480 | 0.5%
| 4,930 | 74.9% | -
| 1.6% | 10 | 0.9%
|
| Unknown | 6,740 |
| 5,420 | | - |
200 | - | 30 | -
| 1,090 |
| RAF | 44,060 |
| 43,520 |
| 50 | | 30
| | 460 |
|
| White | 38,710 | 97.8%
| 38,500 | 97.8% | 10
| 31.8% | 20 | 96.2%
| 180 | 97.3% |
| Ethnic Minority | 890 | 2.2%
| 850 | 2.2% | 30
| 68.2% | - | 3.8%
| - | 2.7% |
| of whom black | 220
| 0.6% | 200 | 0.5%
| 20 | 52.3% | -
| 0.0% | - | 1.6%
|
| Unknown | 4,460 |
| 4,180 | | - |
| - | | 280
| |
| 1. Due to continuing validation of data from the new Personnel Administration System, all statistics are provisional and subject to review.
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| 2. UK Regular Forces includes Nursing services and excludes Full Time Reserve Service personnel, Gurkhas, the Home Service battalions of the Royal Irish Regiment and mobilised reservists. It includes trained and untrained personnel.
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| 3. Ethnic groups are calculated as a percentage of those personnel for whom we hold a record of ethnic origin, ie excluding those of unspecified ethnic origin.
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| 4. Commonwealth includes personnel from Pakistan, the Fiji Islands and Zimbabwe, which were suspended from the Councils of the Commonwealth in November 2006 and December 2006 and December 2003 respectively.
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| 5. Of those classified under "other", 83% in the Naval Service, 74% in the Army and 96% in the RAF are citizens of the Republic of Ireland, and 17% in the Army are Nepalese.
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| 6. Due to the rounding methods used totals may not always equal the sum of the parts. When rounding to the nearest 10, numbers ending in five have been rounded to the nearest multiple of 20 to prevent systematic bias. Unrounded figures are used in the calculation of percentages.
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(vi) An update on the current forecast in-service
date for the A400M and the Type 45 programmes and details of the
action being taken to limit/claw back slippage on these programmes
A400M
Since Contract Award in 2003, contractual milestones have
been met on time, with the exception of Start of Final Assembly
(Seville), which was achieved five months late in August 2007
after a number of delays to delivery of major sub-assemblies.
But in October 2007 Airbus Military published a revised target
date of summer 2008 for A400M first flight, and announced that
initial aircraft deliveries were likely to be delayed by between
six to 12 months. This has placed the UK's In Service Date of
March 2011, based on delivery of the 7th aircraft to the RAF and
as reported in the Major Projects Report 2007, at significant
risk. Industry is implementing a series of schedule recovery plans
and we are determined to do all that we can to help ensure that
the programme delivers on time. We are seeking further information
from the company so that we can build increased confidence in
the robustness of their estimates, understand better any potential
scope for schedule recovery and identify whether there are any
actions we can take to help the company deliver in accordance
with the agreed terms of the contract.
Type 45 Destroyer
As reported in the Major Projects Report 2007, the Type 45
In Service Date has been revised from late 2009 to late 2010.
The Department is disappointed with this further delay, but this
is an extremely complex programme, using much cutting edge technology.
To place the programme on a more stable footing, the Department
has worked closely with the company on a significant reorientation
programme focussed on risk quantification and incentivising delivery.
A revised contract was signed on 8 August 2007 which included
a Delivery Incentive Plan providing both the MoD and BAE Systems
with incentives to achieve the delivery programme. For MoD, this
could potentially lead to a reduction in the overall outturn cost
of the project. For industry, there is a financial incentive of
attached to the delivery of the First of Class on its contractual
target date. Both the MoD and BAE Systems will continue to manage
schedule adherence and its associated risk mitigation as rigorously
as possible.
(vii) An explanation of the new policy covering
the funding of Urgent Operational Requirement and how this differs
from the previous policy
The 2007 Comprehensive Spending Review established a new
funding arrangement for Urgent Operational Requirements (UORs).
This is intended to recognise the MOD's efforts to make current
operational demands a higher priority within its core equipment
plan, while acknowledging the limited scope for changes in the
short term. To the extent that Urgent Operational Requirements
can ever be planned and anticipated, it is also designed to introduce
greater predictability into Exchequer spending on UORs.
The criteria for what qualifies as a UOR remain unchanged.
The key factors are:
a. UORs are urgent requirements for equipment that have
arisen due to the particular demands in a specific operational
theatre; the scheme is not intended to provide general capability.
b. The scheme pays only for the initial procurement and
the support costs incurred on operational deployments; at the
conclusion of operation the equipment must be disposed of or taken
into the MOD's core programme.
The new arrangements are:
a. The MOD and the Treasury will agree a forecast of UOR
expenditure for the following year (eg for 2008-09, decided in
2007-08).
b. The Reserve will continue to pay for all UORs when
the procurement costs are incurred.
c. The Treasury will pay 100% of an agreed proportion
of these costs; the MOD and the Treasury will share the costs
of the remaining amount 50/50 and the MOD will repay the Reserve
its 50% share two years later. For example any costs incurred
in 2008-09 will be repaid in 2010-11.
d. HM Treasury has added £200 million to the Defence
Budget in 2010-11 to mitigate the effect of the repayments.
In summary this produces the following equation:
| | |
| |
| Total Estimated Expenditure | =
| HMT element | + | HMT/MoD Shared Element (50%/50%)
|
| | |
| |
The total estimate is therefore the key determining variable
and we have consequently gone to great lengths to analyse previous
UOR spending data and likely future trends to ensure that it is
robust. The Treasury has agreed that, if UOR spend falls below
this estimate, the uncommitted portion of the £200 million
can be used for other defence priorities as MoD Ministers decide.
On the other hand, if MoD's share of the UOR spend rises above
£200 million, then there will be a charge to the defence
budget. Variations will be reflected in re-setting the Estimate
for the following year.
This arrangement, which is designed to be cost neutral to
Defence, should align the department's incentives with its goal
of ensuring that the needs of operations are properly prioritised
in the equipment programme and ensure that our forces in the field
get the equipment they need.
(viii) Details of the UORs (which relate to equipment
which was in the future equipment programme and which have been
acquired sooner than planned) where the MoD will repay the Treasury
the acquisition costs in the year in which the equipment was originally
planned to be acquired
When a UOR is funded through an Equipment Plan "bring
forward", the capability provided is typically similar, but
not identical to the EP programmed capability. As UORs tailor
equipment rapidly to meet urgent operational needs, the solution
may be a simplified or modified version of the original EP planned
capability to ensure that it can be fielded as soon as possible.
For this reason it is not possible to provide an accurate date
when the capability would have been brought into service under
EP. The table below outlines those few UORs that have been part
funded through EP bring forwards. All to date have been for Operation
Herrick.
Working Name of Capability |
Description | Total Value (90% Approved Total £M)
| Total EP Bring forward to be repaid |
Year to be repaid | Planning Assumption of Service Entry
|
| "REAPER" | An ISTAR collection asset currently deployed on operations
| £43.2848 | £42.044 CDEL
£1.2044 RDEL
| £10.812M per year 2008-09 to 2011-12 |
Oct 2007 |
| "ELSA" | ELSA and SISTA will provide improved situational awareness, targeting and surveillance capability to personnel involved in dismounted close combat on operations.
| £8.48M | £8.48M |
2008-09 | May 2008 |
| "SISTA" | | £7.69M
| £7.69M | 2008-09 | Nov 2007
|
| There is also a fourth classified project for which a further £14.9 million is being brought forward from the EP. The repayment schedule has yet to be agreed with the Treasury.
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7 January 2007
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11
Weighting compensates for the design of the survey, which over
samples small TLBs, and for variations in response rates between
the different grades, sexes and TLBs. Grades/sexes/ TLBs under-represented
in the dataset are given more weight so that they represent more
of the people in their group who were not sampled or did not respond,
and groups over-represented in the dataset are given less weight.
Where information is missing for a respondent on one of the variables
used for weighting (TLB, grade and sex), they have been excluded
from the analysis. Up to the Autumn 2006 survey observations were
weighted only by Grade and Sex. Since then a factor for TLBs has
also been included to reduce bias towards overrepresented TLBs. Back
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