Ministry of Defence Annual Report and Accounts 2007-08 - Defence Committee Contents


Examination of Witnesses (Questions 100-119)

SIR BILL JEFFREY KCB AND MR TREVOR WOOLLEY CB

4 NOVEMBER 2008

  Q100  Chairman: Have you looked for it? Have you looked for a concrete example?

  Sir Bill Jeffrey: No, I confess, I have not, Chairman, but I am not aware of a particular example of that where the original requirement was unfounded.

  Q101  Chairman: No, but, if the incoming unit has got no understanding of the need for that requirement, then it means that the money has been wasted, does it not?

  Sir Bill Jeffrey: It raises an issue, as much as anything, about the transition from one deployed tone to the next, which, I know, is something that my military colleagues take very seriously, the transfer of knowledge and understanding of what the operating conditions are, and it would certainly be disappointing if the conclusion was that a UOR that we were working hard on was simply not required. If that were the conclusion, we would stop trying to acquire it.

  Q102  Mr Holloway: Sir Bill, you talk about operating conditions, and I know that the UOR thing has been a great success, but you talk about operating conditions and I will give you an example of a commander I met, admittedly, seven months ago who was about to go out and do the police mentoring job, a troop commander, and they were saying on the ranges that he was pulling his hair out. He had put an urgent request in to PJHQ that they should not have to have Snatch Land Rovers and that they should have some weapons with rather more range than the Demarco, and this guy was, as I say, pulling his hair out because he was being told the particular vehicle that he needed for his task and the weapon systems that he needed for his task when he and everybody in his unit and the sister unit that had been there before disagreed. This particular guy was personally ringing up TA units in provincial towns to see if he could borrow some GPMGs. That is woeful.

  Sir Bill Jeffrey: Well, I am not familiar with that particular example.

  Chairman: I think you will need to provide chapter and verse.

  Mr Holloway: Sure, but my point though is that actually, in terms of operating conditions, often when commanders are asking for things that they need, they are being told, "No, that is not actually the appropriate thing", like longer-range weapons, like vehicles that can cross grain.

  Q103  Chairman: I think also that is actually probably a question that you need to put to the Secretary of State next week because it is a general question and I think that, if by next week you can provide some details, that would be helpful.

  Sir Bill Jeffrey: What we are talking about here essentially is the means by which the urgent operational requirement is identified and then processed. If there are examples of any confusion about what the requirement actually is, then we can, and should, look into these. All I was saying was that, if you look at the system as a whole and look at the extent to which over time we have delivered on equipment like Mastiff, for example, there has been progress, and I would not want to overstate it, but there has been.

  Q104  Mr Jenkin: Could you kindly update us on where we are with the short examination of equipment programme?

  Sir Bill Jeffrey: It has taken longer than we would wish, is the first point to make. It has not, to pick up a point that was made earlier, constituted anything like a full-scale defence review, but we have wanted, as we have done it, to assess the policy implications of the options that are open to us. In some cases, we have had discussions with our suppliers about different ways in which our capability requirements can be met, and we are not yet quite at the end. I have been very conscious, as have ministers past and present, of the need to keep the period of uncertainty to the minimum. We had a good discussion in the National Defence Industries Council last week, I think the industry understands where we are, and we are hoping that we can resolve this one way or the other within the next few weeks.

  Q105  Mr Jenkin: Does not the fact of the examination really rest on the fact that the present equipment programme is not affordable in the current planning round that we are in?

  Sir Bill Jeffrey: It reflects the fact that our current costings have shown some quite significant increases and we do need to find ways of reducing costs over the forthcoming period.

  Q106  Mr Jenkin: But when last did the forward equipment programme actually match what you were given by the Treasury?

  Sir Bill Jeffrey: Well, there is always an extent to which we take things at risk because there is always an extent to which it might safely be assumed that equipment will take longer to deliver than is, on the face of it, planned. As it happens, notwithstanding what we were saying earlier, I think we are getting better at acquiring on roughly the timescales we originally planned and, therefore, one can take less of a risk than may have been the case in the past, but there definitely is an issue and there are respects in which we will need to find ways of reducing the overall costs of the programme.

  Q107  Mr Jenkin: Can you put a financial figure on the gap?

  Sir Bill Jeffrey: Not easily, and I have thought about this before this session because the one thing is that, if you get beyond the end of the year after next, we are into new spending review periods and who is to say what the outcome of a spending review will be.

  Q108  Mr Jenkin: But within the present time-frame?

  Sir Bill Jeffrey: In the shorter term, there is the linked question of the rest of the programme and how much, and we may face some pressures there, we have some opportunities for making savings, so it is hard to put a specific figure on it, but it is undoubtedly the case that we need to make some decisions that will refocus the programme, not least for the reason that the then Secretary of State gave when he wrote to your Chairman about this a few months ago, to try, if we possibly can, to balance the programme more towards the nearer-term operational priorities.

  Q109  Mr Jenkin: But, within the constraints, it is very understandable that that should be the priority, but the effect of this is that you really only have the two options, either to cancel programmes or delay programmes. Those are the only two options.

  Sir Bill Jeffrey: Or rescope them in some fashion.

  Q110  Mr Jenkin: Downwards in some way?

  Sir Bill Jeffrey: Yes.

  Q111  Mr Jenkin: How will we better support the front line? What do you mean by that?

  Sir Bill Jeffrey: Well, we can all think of particular capabilities that current deployments are stretching more than others.

  Q112  Mr Jenkin: Yes, but we are told that those will all come out of UORs.

  Sir Bill Jeffrey: They will, but nonetheless there is an extent to it. To take armoured vehicles and force protection as an example, these are issues that have been hugely significant for us in the last few years and it would be highly desirable if we could do so, to focus on these, to the extent that the budget allows us to, but I do not think I can go much further than that in terms of specifics at this stage. We are conscious of the need to take decisions on this as quickly as possible.

  Q113  Mr Jenkin: When do you think the review will be completed?

  Sir Bill Jeffrey: I would say within weeks rather than months.

  Q114  Mr Jenkin: So before Christmas?

  Sir Bill Jeffrey: Yes.

  Q115  Mr Jenkin: That is very good news. Obviously, there is public concern being expressed by some of the Forces' chiefs, that they are going to lose some of their sort of high-end longer-term capabilities, like Joint Strike Fighter, for example. Is that a possibility?

  Sir Bill Jeffrey: I do not think any of the chiefs of staff have been commenting on this publicly, to my knowledge. Do you mean some of their predecessors?

  Q116  Mr Jenkin: Possibly. The Chief of Defence Materiel (Air) recently commented that the RAF faced "serious challenges" in balancing its short-term operational commitments with the country's long-term strategic planning. Presumably, that is what he is referring to.

  Sir Bill Jeffrey: Yes, well, I do not think anything I have said today will displace the sense that we do face a challenge on this, that is what we are trying to work our way through, but the chiefs of staff, I think, and it goes back to our earlier discussion about the corporate way in which the Defence Board approaches these things, they are, above all, keen to get an outcome through this set of discussions that is best for defence overall.

  Q117  Mr Jenkin: But do you not dream one day of having an affordable equipment programme?

  Sir Bill Jeffrey: It would be a very desirable state to be in. There is a tendency always to find that our ambition sometimes exceeds our means and we just have to manage that as best we can.

  Q118  Mr Havard: There are obviously reports in the press about individual projects and so on, the fictional sort of stuff that you would expect really, but there was a report in the last couple of days. You mentioned armoured vehicles and the FRES Programme being, in some fashion, renegotiated with General Dynamics. Are these the sorts of things that are taking place in terms of readjusting the programme that you are talking about, so is there a series of elements like that?

  Sir Bill Jeffrey: There is a limit to what I can say about the FRES Programme at the moment because there are still some commercially sensitive discussions going on.

  Q119  Mr Havard: Yes, but the question I am asking, Bill, is that big-ticket items, like JSF at one end, and there are known projects which need to go ahead, are presumably being readjusted or re-evaluated in some fashion, so is that what is happening within the plan?

  Sir Bill Jeffrey: What we have been doing is looking at the full range of projects in the equipment programme and seeing where it would make more sense to rescope or to change the period within which the project is intended to be delivered. On FRES, the position is that it is currently in its assessment phase. We selected General Dynamics in May as the provisional preferred designer for the FRES utility vehicle and we are still discussing exactly how to pursue that relationship, and there is nothing more, I am afraid, I can say to the Committee at the moment.


 
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