Conclusions and recommendations
1 We have commented before on the very tight
schedule which committees such as ours have to adopt if they are
to report on Supplementary Estimates before they are taken in
the House. It is highly regrettable that this year such a very
tight schedule should apply also to the Main Estimates. We expect
the Government in its response to this Report to set out the reason
for the delays and the actions it intends to take in future years
to ensure such delays do not happen again. (Paragraph 4)
2 We request the MoD in response to this Report
explain the reasons for the significant increase in resources
allocated to the Chief of Joint Operations TLB. (Paragraph 7)
3 We welcome the MoD's willingness to share increasing
amounts of information on operational costs with the House at
this early stage in the Financial Year, and likewise for seeking
formal approval from the House for these funds earlier than before.
These are not insignificant steps in allowing our Committee and
the House improved financial scrutiny. (Paragraph 10)
4 Current forecasts suggest that the cost of
operations in Iraq this Financial Year will be £877 million,
and in Afghanistan £3,495 million, a total of some £4,372
million. These sums represent a decrease of 55.2% and an increase
of 36.6% respectively against expected costs for Financial Year
2008-09. The overall reduction, adding together both theatres,
is 3.2%. This is the first reduction in overall costs of operations
in Iraq and Afghanistan since those operations began to be carried
out in both theatres, although Supplementary Estimates this Year
might negate that reduction. (Paragraph 13)
5 We expect the MoD, in its response to this
Report, to set out more clearly why the cost of operations in
Iraq in Financial Year 2009-10 is still so relatively significant
when for most of that Year only approximately 400 UK personnel
will remain in theatre. (Paragraph 19)
6 We expect the MoD in its response to this Report,
or within its Annual Report and Accounts to set out clearly, comprehensively
and in appropriate detail the specific drawdown costs in Iraq
for Financial Year 2008-09. If these costs significantly exceed
or fall under the £455 million allocated for the purpose,
we also expect the MoD to explain why this is so. (Paragraph 20)
7 We expect the MoD to set out for us when the
costs of the loss represented by the gifting of infrastructure
to US forces in Iraq will be accounted for, and when the House
will formally be asked to vote monies as a consequence. We also
request an explanation of why this drawdown cost does not feature
in the broken down costs set out in the Government response to
our last Report on the Spring Supplementary Estimates. (Paragraph
22)
8 We would be grateful for confirmation of Urgent
Operational Requirement (UOR) costs for 2008-09, accompanied by
a note explaining the changes to the composition of these costs
over the period concerned. (Paragraph 24)
9 We would be grateful for an explanation of
why UOR costs beyond the limit agreed between the Treasury and
the MoD are now to fall in full upon the MoD two Financial Years
later: this seems to go against the agreement announced to the
House by the then Secretary of State, the Rt Hon Des Browne MP,
in November 2007, which stated that such costs would be split
50:50 between the Treasury and the MoD. (Paragraph 25)
10 We request the MoD, in its response to this
Report, to break down the projected 2009-10 £635 million
UOR costs in the same way as it did for 2008-09, by theatre and
by capital or resource type. We are concerned that this limit
on UOR costs may be an indication that the key ingredients of
UORs, namely that they are required, urgently, for operational
reasons, may be seen taking second place to cost considerations.
We also request the MoD to give an explanation of why UOR costs
are expected to be so much less than for the previous Financial
Year. (Paragraph 25)
11 We are concerned that there might still be
significant increases in the cost of the Protected Mobility Package,
all of which will fall to be paid in full by the MoD. We request
the MoD in its response to this Report set out its latest assessment
of the cost to it of this Package, when this cost is likely to
fall, and when the House will formally be notified of this cost.
(Paragraph 26)
12 We recommend that the House of Commons approve
the MoD's Main Estimates, and have identified no issues which
require a debate before it does so. The House should note that
for the first time these Estimates contain a formal request for
resources for operations in Iraq and Afghanistan which means that,
while they cannot directly be compared to previous Main Estimates,
they do represent a more realistic assessment of operational costs
and of monies for which the MoD is responsible for the whole Financial
Year. (Paragraph 27)
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