Defence Equipment 2009 - Defence Committee Contents


Examination of Witnesses (Questions 360-379)

MR QUENTIN DAVIES MP, GENERAL SIR KEVIN O'DONOGHUE KCB CBE, LIEUTENANT GENERAL ANDREW FIGGURES CBE AND MR AMYAS MORSE

16 DECEMBER 2008

  Q360  Mr Havard: I am aware of all of that but that brings with it a logistics burden as well, does it not, because you have got to supply a lot of parts and different people and different training and different ways of operating. Where has that gone because I thought this was going to be a system of systems that integrated with Network-Enabled Capability? The strategic view seems to have gone in the bin because of expediency.

  Mr Davies: If expediency means rapid reaction to immediate, pragmatic requirements, then expediency is a good and necessary thing and something which I regard as a virtue in this matter. If you like to use the word expediency in the way that I have defined it, we have expediently and pragmatically, and I think very sensibly and effectively, procured off-the-shelf and very rapidly precisely the vehicles—

  Q361  Mr Havard: I am not contesting the fact that we have got operational requirements and we bought these vehicles; that is not my point. You are setting out your view of what the strategy should be and what the procurement policy is going forward for enabling people in the Army to have these types of vehicles.

  Mr Davies: Yes.

  Q362  Mr Havard: It seems to me that for whatever reason you have not got a plan to actually get back on track with that because all the time all I hear is we are going to patch up what we have got, we are going to buy more operational requirement vehicles and so on; if that is the case then let us do that in a consistent way and let us forget about building a utility vehicle, let us buy somebody else's and let us amend them then, because that is what you are doing day to day.

  Mr Davies: Mr Havard, I hope that you are not suggesting, because obviously I would not go along with you if you were suggesting, that when we have an urgent operational requirement in theatre instead of buying the capability which we need—

  Q363  Mr Havard: No, that is not what I am saying at all. You are avoiding the question.

  Mr Davies:—as urgently and as rapidly as possible we should go back—

  Q364  Mr Havard: There is no coherent plan it seems to me and I have not heard you come out with one yet. You tell me that the specialist vehicles thing is going swimmingly well, I have absolutely no idea what that means because I was told something similar about the utility vehicle in the very recent past. Is there going to be an engineering variant, when is the Scout vehicle coming along, how is it going to work and when is it going to work?

  Mr Davies: Mr Havard, so far I have not been able to finish a single sentence, but if you—

  Q365  Mr Havard: You make them so long you see and you divert first of all—I do not want completeness, I want an answer.

  Mr Davies: I am going to try and give you an answer but the main obstacle so far to my giving you an answer if I may say so has been the fact that you prevented me from completing my sentences. But there is an engineering vehicle, which is Terrier; there is a reconnaissance vehicle which is one of the really urgent requirements that we are going forward with as rapidly as possible. From the political and financial points of view we are going to produce this reconnaissance vehicle with the maximum despatch. There are only, therefore, technical issues about the speed with which this can come into theatre and I will ask General Kevin to say a word or two about that in a second, it is enormously important. We have to strike a balance here; I go back to my business of balances. We have to do what we can for the theatre, for the operational requirements, as rapidly as we can. We have been fortunate enough to find off the shelf, with some modification in some cases, but a very rapid modification, a series of armoured vehicles and protected personnel vehicles which really do correspond extraordinarily well to the specific requirements of this insurgency in Afghanistan. We have purchased them and you know about that.

  Q366  Mr Havard: I do.

  Mr Davies: That does not mean to say we are neglecting the long term major structural requirements of the British Army and that is why we continue to be committed to the FRES programme as well, so there is no inconsistency between the two, there is a large element of pragmatism and expediency and I think those things are very desirable in the circumstances. Would you like me to add anything on that?

  Q367  Mr Havard: Before you start, are you going to give us a date for when it will be happening?

  General Sir Kevin O'Donoghue: We are almost ready to go out to industry to seek bids for the Scout vehicle. I cannot give you a date because until you go out and ask industry what sort of timescale they will require to deliver something I cannot give you a timescale.

  Q368  Mr Havard: But you are about to offer it out soon.

  General Sir Kevin O'Donoghue: Soon.

  Q369 Chairman: Minister, can I read out a sentence that you have just said to us because it struck me as so extraordinary that I want to pursue it. You said, in answer to Dai Havard's point, "The coherence lies in having the widest possible range of weapons that commanders in the field can rely on." Surely that wide range of weapons is precisely the thing that destroys the coherence.

  Mr Davies: Coherence is not something we pursue for its own sake, just for the sake of neatness and having a nice inventory that looks good on paper, coherence is what we want to have where the capabilities of the various vehicles are complementary so that you can move across a spectrum, going from heavier to lighter, going from greater firepower to less firepower, going from faster to not so fast, for difficult terrain, less difficult terrain, so that you have the widest possible scope for choosing the vehicle that you really need for that particular operation. That is what we are trying to give commanders in the field and that is what I mean by coherent so that each particular platform relates to the others in the sense that it is complementary, it is not if you like duplicating the capability of the other one, it is expanding the full range of capability available to us. I would like if I might, Mr Arbuthnot, just to ask General Figgures to say a word about this whole issue—because he is responsible after all for equipment capability—and how we see our future requirements in the armoured vehicle and protected vehicle area.

  Q370  Chairman: General Figgures.

  Lieutenant General Figgures: Thank you, Chairman. If I could perhaps address my remarks to this question of the family of vehicles; yes, Mr Havard is quite right that when we set out on the concept phase of this we anticipated that we would have one common chassis on which we would build our various subsystems to reflect the requirements for each function. Further work suggested that this perhaps was not going to be the solution, but we would perhaps have to run with two chassis types, we would achieve our commonality and the logistic coherence that he describes through having common subsystems and this would be part of a network-enabled capability. Whilst it is treacherous sometimes to use analogies, effectively the network-enabled capability is rather like the nervous system in the body, so if we were thinking about teeth, it would be the nerve in the tooth, so we would have the common network which would be implemented right across these "FRES" vehicles although they would have different chassis systems. We would attempt to have common generators where appropriate, we would have common radios, we would have common electronic counter-measures, we would have where appropriate to reflect the function of the vehicles common subsystems in terms of sighting and so on. So that is how we were going to achieve it, although because the chassis did not look precisely the same did not mean that we were going to give up this original idea but we were going to optimise it, there were trades and balances in this. Coming on to Mr Havard's point about the functions that each of these parts of the family were going to deliver, yes, the utility vehicle would carry an infantry section but there would be a command vehicle, there would be a vehicle in which we would put our communications, there would be a vehicle perhaps in which we would put our electronic support measures, there would be an ambulance vehicle, there would be a vehicle in which we mounted the anti-tank guided weapons and fire support weapons. The question we then had to ask was how much variation was tolerable, indeed affordable, in doing that. Equally, on the specialist vehicles from which we were going to get the reconnaissance vehicles, yes, we would have a close reconnaissance vehicle, we would need a formation reconnaissance vehicle—they may look very similar but their internal sensor fit and so on might be different, there would be a command variant, there would have to be an ambulance variant to support it. That is how we propose to do it, so whilst it may appear without the necessary supporting detail that we have thrown all our good ideas out of the window, we have not and of course it is not without some difficulty that you can get people to supply all this. I hope that clarifies it.

  Mr Havard: They have not got a clue what they want.

  Q371  Chairman: This difficulty has been going on for decades now. One of the main issues is getting the Ministry of Defence to decide what it actually wants.

  Lieutenant General Figgures: If I may, Mr Arbuthnot, capability (which I plan) is a relative notion; you cannot stand still in time because the enemy has a vote in this and I think in a previous session with this Committee we have addressed this issue of how capability has to change, the fact that our original view with respect to FRES was that perhaps it had to be proof against kinetic energy rounds in preference to chemical and improvised explosive devices. Our experience in Iraq and Afghanistan has demonstrated that we have got to shift that balance. That is an increasingly complex requirement to meet, and we have found—our allies have found—that you cannot necessarily buy these things straight off the shelf and, indeed, these urgent operational requirements to which the Minister refers have had to have some considerable modification to what comes out of the factory gate.

  Q372  Chairman: Okay. We ought to move on from FRES because we have probably spent quite enough time on it. Vector: is Vector unable to take the weight? Is it unable to operate on rough terrain? Does it keep breaking its axle?

  Lieutenant General Figgures: I will pick that up if I may. Vector was introduced as you know, as an urgent operational requirement. Yes, we have had some problems with it, yes it is a combination of all up weight, cross-country performance and, like many of these things, you do not get a perfect solution, and so that is why we are constantly looking ahead in terms of protected patrol mobility and the utility vehicles necessary to support it to see what other options there are. Some of these solutions have not been perfect.

  General Sir Kevin O'Donoghue: You produce a solution for the requirement of the time; the requirement changes as the threat changes, as the security architecture changes and you need to produce something else. Quite rightly, Chairman, there is only so much weight you can put on a particular chassis and when you reach that weight limit you either have to have something bigger and more powerful or you have to have a different form of protection, which it would be inappropriate to go into, but things change.

  Chairman: Moving on to the Future Lynx programme, Adam Holloway.

  Q373  Mr Holloway: Minister, with reference to the capability that is being filled by Future Lynx you referred earlier today to "simple-minded protectionist approaches" and also to the "full benefits of competition". Do you think that you are getting the full benefits of competition in this particular programme?

  Mr Davies: This is a partnership programme, Mr Holloway, as you know. These are two broad categories and there are hybrids between them.

  Q374  Mr Holloway: I can understand that.

  Mr Davies: It is reasonable to distinguish between classic competitive contracts—where we simply go to the market and say this is our requirement, we get in bids and we negotiate the price and sign a contract—and partnership arrangements where we actually agree with a particular group of manufacturers, or perhaps one manufacturer in certain cases—and probably this is appropriate in areas where there is quite a high technical risk—that they will work on reducing the risk, they will take some of the risk, we will take some of the risk, we will typically have a target price with incentives for doing better than that, penalties for doing worse than that, so that we share the risks right the way through. This falls into the partnership area. I did actually look at competitive solutions and you might be interested in this since you raise this matter. Maybe I horrified certain people when I asked for a study on this subject, but I did say do we really need Future Lynx, is there perhaps an off-the-shelf solution here. I asked for a small study to be done looking at Black Hawk—Black Hawk of course is a workhorse for the US Army that has been around for a long time—because I wanted to have a check as it were against the other proposal that we should go ahead with Future Lynx. I was persuaded, Mr Holloway, that actually Future Lynx was the right solution. First of all I was persuaded that we needed the same helicopter, the same basic structure of helicopter for the naval and battlefield roles and, secondly, I was persuaded that actually we did have a good deal. I was actually quite surprised at how expensive the Black Hawk solution would actually have been. Like other people coming fresh to this particular field one tends to think that as the Americans have these very long production runs automatically their prices are going to be cheaper, but I am not sure that actually American defence procurement is always quite as efficient as it is sometimes made out to be and sometimes what you might think plausibly would be the position does not turn out to be. I am therefore very confident that we have gone down the right road here and that we are going to get the right capability, and it is one that of course is directly engineered, really specified for the particular requirements of the Royal Navy and the British army.

  Q375  Mr Holloway: Your written Ministerial Statement referred to the even greater operational capability; how many of these aircraft are you settling on, what will they cost and when will they be ready?

  Mr Davies: Let me take those questions in order. The answer to your first question is about 60, the answer to the second question is that we do not know, we have not decided, we are discussing this matter with the company. We do not produce in service dates until we have actually got through Main Gate and we are some way away from doing that, so I cannot answer that.

  Q376  Mr Holloway: Roughly.

  Mr Davies: We do not want to lose any time on this but there are some technical issues to be resolved. I do not know, Kevin, whether we could have a stab at that. As a matter of principle, Mr Holloway, we either have in service dates or we do not; we do not have in service dates until we have been through Main Gate and I am always very reluctant to give my personal estimate as to what an in service date might be before we have even looked at Main Gate because we do not necessarily know all the variables which are going to determine the answer to that question. I am cautious about it, but if General Kevin wants to make a stab at something I am very happy for him to do so.

  General Sir Kevin O'Donoghue: We are through Main Gate, Minister, on Future Lynx.

  Mr Davies: We have not placed the amended contract yet.

  General Sir Kevin O'Donoghue: We need to now discuss with the company exactly when these aircraft will come in.

  Q377  Mr Holloway: Roughly.

  General Sir Kevin O'Donoghue: I need to come back to you on this.

  Q378  Chairman: Could you explain this principle of not giving in service dates until you have gone through Main Gate?

  Mr Davies: The point is that until we have gone through Main Gate we have not had the negotiations with the company, we have not fixed on the price, we have not fixed on the terms of the contract so we are in a very bad position in order to be able to say what it is. We are hoping it is 2014, January 2014.

  Q379  Chairman: The principle of not announcing in service dates until you have gone through Main Gate obviously does not apply in this case where you have gone through Main Gate, but if it is to reduce the uncertainty—which we saw remained even though you did go through Main Gate with the aircraft carriers—what is the point in preserving this principle that you do not give industry an idea of when they need equipment to be in service by?

  Mr Davies: We may well give industry that idea; when we are having discussions with industry about almost any project the timing comes into that because we need to take into account the technical risk, we need to get their assessment of what the technical risk is, of how long it will take to resolve it. We obviously tend to have a requirement that means we want the capability available as soon as possible but there is a dialogue on that matter, Mr Arbuthnot. It is not always very sensible, while we are having that dialogue with industry, to make a public statement about these things because it pre-empts some of the discussion with industry. There may also be cases where there is a trade-off between price and delivery time and we do not want to lose the flexibility of our commercial negotiations.


 
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