Conclusions and recommendations
1. We
are pleased that the Government, retaining the general title of
"Operations and Peacekeeping" for Request for Resources
2, in its Estimates now includes direct reference to "current
operations in Iraq, Afghanistan and the Balkans". (Paragraph
2)
2. We commend the
MoD for including in these figures indirect as well as direct
resource costs which was not the case in last year's Winter Supplementary
Estimates. (Paragraph 3)
3. We remain concerned
at the very short amount of time available to committees such
as our own, between the laying of the Supplementary Estimates
and the decision of the House to approve them, to carry out careful
and thorough analysis of these Estimates and engage in a dialogue
with Government Departments over any areas of uncertainty or concern.
We remain hopeful that some mechanism will be introduced that
will permit a better examination of departmental estimates in
the future than what currently obtains. (Paragraph 4)
4. For the sake of
clarity we call on the MoD in future to provide End Year Flexibility
tables in its future Estimates memoranda, as recommended by the
Treasury's guidance. (Paragraph 5)
5. We would be grateful
for the MoD to provide us with an explanation for the changes
in the Estimates relating to the Royal Hospital Chelsea in its
response to this Report. (Paragraph 6)
6. We would like an
explanation from the Ministry of Defence for this significant
reduction in the Departmental Expenditure Limit for Science Innovation
and Technology and whether it signals a cut in spending, and—if
so—what the consequences of this reduction will be. (Paragraph
7)
7. The Winter Supplementary
Estimates estimate the additional costs of operations in Iraq
and Afghanistan in 2008-09 as £1,397 million and £2,318
million respectively. (Paragraph 8)
8. While we are aware
that in future memoranda accompanying its Main Estimate the MoD
intends to give a more robust sense of expected operational costs
over that Financial Year, we are disappointed that the figure
given in its Main Estimate memorandum for this Financial Year
appears so loose. (Paragraph 9)
9. We restate our
hope that the MoD manifests no complacency with regard to its
forecast of operational costs made early in each Financial Year.
(Paragraph 10)
10. We understand
the volatility that inevitably accompanies forecasts for operational
costs. However we remain to be convinced that these forecasts
are as robust as they ought to be. (Paragraph 11)
11. We are aware that
Treasury processes make the preparation of the Supplementary Estimates
a longer process than is ideal for the presentation of up-to-date
costs. Nonetheless we continue to believe it unsatisfactory that
the House is asked to agree to Supplementary Estimates that represent
such out-of-date forecasts of costs for operations overseas without
it having sight of any more up-to-date assessments of those costs.
(Paragraph 12)
12. We would be grateful
if the MoD could provide us with the working forecast used to
prepare the Spring Supplementary Estimates in whatever form it
considers most appropriate early in the New Year. The MoD might
also look to attach to its Winter Supplementary Estimates memorandum
in future an indication of this forecast, if it is available by
then, or make it available to us before the Estimates are considered
in the House each Winter. (Paragraph 13)
13. We hope that the
interim forecast we have asked for from the MoD and the estimate
of operational costs which will appear in a couple of months time
in the Spring Supplementary Estimates will show less significant
changes than has been the case in the last two Financial Years.
(Paragraph 14)
14. We call on the
Ministry of Defence to provide us in its response to this Report
with an explanation for the continuing high level of costs in
Iraq, and in particular for the significant increases to military
personnel and equipment support costs. (Paragraph 15)
15. We believe that
in future within each Supplementary Estimates memorandum there
should be some explanation of significant changes in operational
costs since the presentation of the last figures, whether from
the previous year's outturn, from the memorandum accompanying
the Main Estimate or from the Winter Supplementary Estimates.
This information would clearly be of interest and use to us and
to the House as a whole. (Paragraph 16)
16. We would be grateful
for an indication from the MoD in the response to this Report
of whether spending on Urgent Operational Requirements beyond
£1,065 million is expected this Financial Year, and, if so,
what the impact of that spending will be on the MoD's 2010-11
budget, including any current assessment of which equipment programmes
could be affected in that year. We call on the MoD to provide
in future with the Supplementary Estimates more detail of expected
spending on Urgent Operational Requirements. (Paragraph 17)
17. We would for future
Financial Years like the MoD to provide us with:
- a more detailed account of
operational costs expected in the Financial Year in the memorandum
accompanying the Main Estimate, explaining any significant change
between those costs and those in the previous Financial Year's
outturn;
- a further forecast of operational costs before
the summer, or as soon as possible thereafter;
- an explanation in the memorandum attached to
the Winter Supplementary Estimates of any significant changes
between its figures for operational costs and those in the memorandum
accompanying the Main Estimate;
- a third forecast of operational costs shortly
after the Winter Supplementary Estimates are laid, preferably
before they are considered by the House;
- more detail where appropriate, in the documents
between the Main Estimate and the subsequent Annual Report and
Accounts for that year, of expected and final spending figures
for Urgent Operational Requirements; and
- an explanation in the memorandum attached to
the Spring Supplementary Estimates of any significant changes
between its figures for operational costs and those in the memorandum
accompanying the earlier Winter Supplementary Estimates.
We are aware that the MoD has already made clear
its intention to provide the first of these from 2009-10 onwards
and already provides the last. We hope the MoD will be able to
take the other three proposals on board also which will enable
better scrutiny of its Estimates by our Committee and by the House
of Commons. (Paragraph 18)
18. We recommend that
the House of Commons approve the request for resources set out
in the MoD's Winter Supplementary Estimates. The £3,739.112
million requested to meet the forecast cost of operations in Iraq
and Afghanistan in 2009-09 is a very significant sum of public
money, but it is vital that our Armed Forces are properly resourced
to carry out those important tasks which they have been given.
(Paragraph 19)
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