1 Introduction
1. The Defence Committee has undertaken regular inquiries
into issues relating to defence equipment procurement and the
Defence Industrial Strategy (DIS). In our Report on Defence
Equipment 2008, published on 27 March 2008, we examined: the
first year of operation of the Defence Equipment and Support (DE&S)
organisation (created on 1 April 2007 from the merger of the Defence
Procurement Agency (DPA) and the Defence Logistics Organisation
(DLO); the current and future issues facing DE&S and defence
equipment procurement generally; and the progress on key equipment
programmes.[1] The Government
response to our Report was published on 17 June 2008.[2]
Following the publication of the response, there have been several
major announcements relating to defence equipment including:
- the announcement during the
Defence Procurement debate on 19 June 2008 that the MoD was "undertaking
a short examination of the equipment programme to look at our
planning assumptions over the next 10 years";[3]
- the publication on 21 July 2008 of the Ministry
of Defence Annual Report and Accounts 2007-08 showing that Public
Service Agreement (PSA) Target 6—"Deliver the equipment
programme to cost and time"—was only "partly met"
and acknowledging that, over the year, "procurement performance
declined";[4]
- the appointment on 5 October 2008 of Quentin
Davies MP, as the new Minister for Defence Equipment and Support;[5]
and
- the Statement by the new Secretary of State for
Defence on 11 December 2008 announcing the "key conclusions"
from the short examination of the equipment programme, including
the decision to delay "the In Service Date of the new carriers
by 1-2 years".[6]
2. In this inquiry we once again examined the progress
and performance of DE&S, but also broadened our inquiry to
cover other key issues including: the announcements following
the completion of the short examination of the equipment programme;
the funding of defence equipment and support; and the progress
with the DIS.
3. We held three oral evidence sessions for our inquiry:
on 18 November 2008 we took evidence from senior representatives
from the UK defence industry; on 25 November 2008 we took evidence
from General Sir Kevin O'Donoghue, Chief of Defence Materiel (CDM)
and head of DE&S, and DE&S officials; and on 16 December
2008, we took evidence from the new Minister for Defence Equipment
and Support (the areas which the Minister leads on are set out
in Table 1 below), CDM, Lieutenant General Andrew Figgures, Deputy
Chief of the Defence Staff (Equipment Capability), and Mr Amyas
Morse, Defence Commercial Director. We received written evidence
from a wide range of organisations and individuals. We are grateful
to all those who contributed to our inquiry, including our specialist
advisers.
Table 1: Areas which the Minister for Defence Equipment and Support leads on
| Min DE&S leads on:
Defence Equipment Programme through life
Logistic support including:
Defence Support Group
Defence Storage and Distribution Agency
Defence Industrial Strategy
Acquisition Reform
Performance Management of DE&S including:
Major Projects Report
National Defence Industries Council
Defence Science and Technology including:
Defence Technology Strategy
DSTL
QinetiQ
Commercial Policy throughout the Department
Atomic Weapons Establishment
Defence exports including international aspects of defence equipment and support
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Source: Ministry of Defence[7]
1 Defence Committee, Tenth Report of Session 2007-08,
Defence Equipment 2008, HC 295 Back
2
Defence Committee, Seventh Special Report of Session 2007-08,
Defence Equipment 2008; Government response to the Committee's
Tenth Report of Session 2007-08, HC 555 Back
3
HC Deb, 19 June 2008, Col 1122 Back
4
Ministry of Defence, Annual Report and Accounts 2007-2008 Volume
I: Annual Performance Report, HC 850-I, page 13 and page 132 Back
5
"New Ministerial team announced" MoD Press Release,
6 October 2008 Back
6
HC Deb , 11 December 2008, Col 65WS-67WS Back
7
http://www.mod.uk/DefenceInternet/AboutDefence/People/Ministers/UnderSecretaryOfStateAndMinisterForDefence
EquipmentAndSupport.htm Back
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