Ministry of Defence Annual Report and Accounts 2008-09 - Defence Committee Contents


Examination of Witnesses (Questions 111-160)

RT HON BOB AINSWORTH MP, REAR ADMIRAL ALAN RICHARDS AND MR TERENCE JAGGER

24 NOVEMBER 2009

  Q111  Chairman: Secretary of State, good morning and welcome to your first evidence session in front of the Defence Committee as Secretary of State. We have a huge amount to cover because this is a joint session about the Ministry of Defence Annual Report and Accounts and about our inquiry into readiness and recuperation, and to that we have added additional questions about the Green Paper. Although you have to leave at one o'clock—and it may seem like a long time particularly to you but also to us—time is short and I would ask, therefore, the Committee to be extremely tight in their questioning, and I would ask you, Secretary of State, and the other witnesses, please, to be tight in your answers.

  Mr Ainsworth: Chairman, could I first of all apologise for messing the Committee around. We did have urgent business, there was an Opposition Day and then we had the Abu Ghraib report as well which mitigated against my coming the first time when we tried to get this session up and going; and then I was, I am afraid, quite ill on the second occasion and I do apologise for that. I have with me, as you can see, Rear Admiral Alan Richards, who is my expert on strategy and plans, so if you want to get into the details on recuperation or readiness he might avoid us having to write to you on the odd occasion; and, equally, I have Terence Jagger who is on the finance side. Jon Thompson, who is his superior—he has not run off with the money, I am told—I am afraid he is ill and has probably got the same as I had, and I maybe even gave it to him, so I am afraid he cannot be here to help today.

  Q112  Chairman: We had Mr Jagger in front of us with the Permanent Under-Secretary. Thank you very much indeed. We will start with the MoD Annual Report and Accounts, and then at some time we will move on to readiness and recuperation and the Green Paper. The Report and Accounts are qualified again and yet last year the Permanent Under-Secretary told us that there was "a good prospect" that the problems with the Joint Personnel Administration would be resolved, that the accounts would be free from qualification this year. Qualified again; and yet this year the Permanent Under-Secretary reassured us that it was likely that the accounts would be unqualified next year. Why should we believe him this year any more, I have to say, than we really did last year?

  Mr Ainsworth: So you did not believe him last year when he told you about this?

  Q113  Chairman: Well—

  Mr Ainsworth: Chairman, not only qualified again but, I am afraid, qualified on four counts this time. We continue to have problems with the JPA system which we are working with the National Audit Office to try to sort out. There are other issues and I would hope the Committee would have at least a degree of sympathy, although I do not believe that you should allow us to be in any way complacent. For instance, there is the qualification with regards to the Bowman equipment. What happened with Bowman is that we bought a piece of kit—

  Q114  Chairman: We will come on to Bowman. Just on the JPA issue, apparently the solutions that you produced to amend the qualification last year were the things that caused the qualification this year?

  Mr Ainsworth: We are trying to be responsive to our people. We are trying to make sure that we can actually make payments at an appropriate time and yet, at the same time, satisfy the auditor that we have got control of those payments where there are overpayments or underpayments being made. It is a complicated system; it has suffered problems, bedding-in problems, which are taking longer for us to get to the bottom of and we have not been able to satisfy the National Audit Office yet. It is not only Bowman and the JPA, we have also got a problem on general stocks. We are working with the National Audit Office to get a better feel for the size of the problem but it maybe looks a little worse than it is on the sample that they took. For instance, they took a relatively small sample and they found errors in 22% of the sample. Some of those errors were pretty minor in nature, so it is not the case that there is a 22% error. There is a 22% error but some of those are very small indeed; they are very small items.

  Q115  Chairman: Secretary of State, you have moved on to stock again. I want to concentrate just for a moment on the Joint Personnel Administration. You have to manage the manning levels and the harmony guidelines with information which is apparently so bad that it causes your accounts to be qualified. How can you manage harmony guidelines in those circumstances?

  Mr Ainsworth: I think we are pretty confident that there has been some small improvement in harmony guidelines, although I cannot say to you that we have still got all of our people in ideal harmony; we are still finding considerable difficulty with some pinch-point trades. Yes, of course, the problems with JPA do not help us to be able to prove to ourselves or yourselves that that is so. May I ask Terence to give you a bit more detail on that.

  Mr Jagger: I think the qualification on JPA in the previous set of accounts was very much about our inability to provide evidence that the payments JPA was making were justified. In the preparation of this year's accounts we have had a very thorough process of sampling with the NAO, and on that particular issue the NAO have not qualified us this year. What they have said is that JPA is paying accurately in accordance with the instructions it gets from the units. The qualification this year relates to the quality of those instructions. We have dealt with one problem—I would say very successfully—and we now have, if you like, a problem earlier in the process which is about when the request is originally put in. I think the record on accurate pay is extremely high for JPA. We are talking about, on the whole, specialist allowance rather than base pay; and we are talking about a problem which we are addressing with great energy at the moment. The Deputy Chief Personnel has got a whole project going and I am hopeful that we will see a real improvement this year.

  Chairman: Getting on to the stocks and Bowman, Bernard Jenkin.

  Q116  Mr Jenkin: Secretary of State, you have already mentioned Bowman and you know the problem, and we cross-examined the Permanent Under-Secretary quite intensively on that question. Is there anything more you would want to add before we probably write something fairly critical in our report?

  Mr Ainsworth: Could I just talk about the harmony, because the issue that has just been raised on JPA is not going to impact on harmony but there is another qualification to do with numbers, which I think the Committee might be worried about. This is about numbers in Naval Reserve, and it is about us being able to prove and to show that we are within the totals that we have approved in Parliament at each and every day of a period. We know how many we have at the start and the finish of the accounting period, but we have not been able to show to the satisfaction of the auditor that we are able to prove exactly how many people we have got in the Naval Reserve each and every day throughout the period. I am not dead sure that makes our problems in understanding and reporting on harmony worse, but harmony is another matter the Committee might want to get on to. Bowman continues to be a problem. When we bought Bowman we bought a system wanting it to be flexible and usable by our Armed Forces. I do not think the Committee would want us not to have done that. For instance, if a vehicle fitted with a Bowman radio is broken in theatre for whatever reason a soldier is able to take the Bowman radio out and keep that in theatre and the vehicle comes back to the UK for repair, for scrapping or whatever minus its Bowman radio. That gives us a great degree of flexibility in theatre but, nonetheless, it makes it very difficult for us to be able to prove at any one time where each and every Bowman radio is. So there is a tension between the audit trail and our ability to be able to prove where some quite valuable equipment is and the flexibility that we, for quite understandable reasons, want to give to our troops. Having given them that flexibility, having given them a system that is usable in that way, we need now for our systems to catch up with that to give us the satisfaction that we have got control on exactly what we have got, what we have got that is workable, where we have got them and that we are able to apply all of that equipment in the most cost-effective way that is in line with where the effort is and where the needs are. That is what we are working on. Terence, do you want to add to the Bowman side of things?

  Mr Jagger: I think you have covered the main points. There are some which are in transit to and from theatre; and there are some which are in repair with either the original equipment manufacturer or the vehicle repair loop and it is very difficult to keep a handle on those. We are introducing a new system called "the management of joint deployed infantry" which should improve the situation further. If I had been sitting here a year ago I would have said we had our hands on exactly where almost none of the Bowman were; now we have a very precise understanding of where about 90% of them are, so we have come a long way in a year and I am hopeful that we can improve further. There are 36,000 of these and that does inevitably make it quite a technically demanding challenge.

  Q117  Chairman: Any private sector organisation would know where things were in transit, would they not?

  Mr Jagger: I think they would, but not many private sector organisations are fighting a considerable combat in Afghanistan, and very few of them have the same complexity of logistics processes that we do.

  Mr Ainsworth: On the other side of things, and I am not saying that this is an excuse, would you have wanted us to put in a piece of equipment that said that the soldier could not take the Bowman away from the vehicle without filling in chits and providing the audit trail before he did in any circumstance? I do not think the Committee would have wanted us to apply that degree of rigidity to Forces in theatre?

  Q118  Chairman: No, but we would have wanted you to have put in some systems which allowed you to keep track of this valuable equipment.

  Mr Ainsworth: Absolutely.

  Q119  Mr Jenkins: The difficulty we have got, Secretary of State, is that we have just gone through hoops to get £20 million out of the system to put back into Territorials, and yet we have got figures like £268 million on pay and conditions—and I may be incorrect or correct, I am not sure—and we have got £155 million of assets such as Bowman which we cannot put our hands on. Do you not think these figures would strike dread within us? Having had to find £20 million out of all this budget and screw the thing down, to find we cannot account for these sort of figures is, to say the least, a bit disappointing.

  Mr Ainsworth: I do not think we can afford to be complacent and I do not think we can ignore the need for audit and that is what we are struggling to try to give the Committee. If I believed that we had lost that equipment I would be worried indeed. I do not believe we have lost that equipment. I believe, as I have said, in a lot of instances soldiers in theatre and elsewhere behave as they have been allowed to do because of the equipment we have provided them with, and they have said, "You might be having this vehicle back but you're not having that Bowman, I might need that", or, "I do need that", and that has broken the audit trail. I do not want to take that ability and flexibility away from that man if that is what he needs to do. What I do want is an audit system in place that measures exactly what is happening so that we can track this equipment. I do not think the problem is the size that your question seems to indicate that it is. Yes, of course, we have got to be able to prove where everything is, and we are struggling to try to do so while we are fighting a very complicated war in an extremely difficult theatre.

  Chairman: Secretary of State, I want to move on but I suspect we will be quite impolite about this because the difference between losing equipment and not knowing where it is strikes us as being not very great. Bernard Jenkin.

  Q120  Mr Jenkin: I think the Permanent Under-Secretary described them as "not lost but we just don't know where they are"! Moving on to performance indicators, I think we are becoming increasingly concerned about how meaningful these performance indicators are because there is less and less information provided with very general comments such as "some progress", "no progress", "some progress", "not assessed" about key DSO indicators. Are you satisfied with the overall performance of the Department?

  Mr Ainsworth: If you want to give us specifics of performance indicators that you are unhappy with that might be a way of getting into a quality debate about where your concerns are.

  Q121  Mr Jenkin: If we go to the Public Service Agreements which are joint with other departments, we said in a previous report: "It is indeed hard to see how this will not affect the amount of information the MoD makes available on those areas where it now contributes to performance indicators". The point being that you are now giving so little information about, for example, "to reduce the risk to the UK in its interests overseas from international terrorism", which is of course a Service agreement you share with the Home Office, that it is difficult for us to glean anything from these comments?

  Mr Ainsworth: Do you think that that is easy to measure and to quantify in anything other than the broadest of terms?

  Q122  Mr Jenkin: You produce these performance indicators which are meant to be providing some help to us to show whether your Department is performing. If we move on to the DSO targets, what does this mean, for example, "Be ready to respond to tasks that might arise. Indicator 2.1: UK contingent capability and delivery of force elements at readiness. `No progress'. For a considerable time, Armed Forces have operated above the level of concurrent operations which they are resourced to sustain over time"? What are the metrics that you need to share with us in order to put flesh on that comment, because at the moment you do not share many figures with us?

  Mr Ainsworth: We did share with you a new methodology that we introduced called the Strategy for Defence. I would not have thought the Committee would be the slightest bit surprised that we are having to change some of our thinking about what is important, because we are operating and we have operated for some considerable time now well above defence planning assumptions. I do not know what you describe Afghanistan as, whether it is medium-scale plus or medium-scale plus plus; but having got out of Operation TELIC, which of course was an achievement, we now have over 9,000 troops in theatre in Afghanistan, but with our ability to be ready for every contingent capability, the Committee ought not to be surprised that it is not as it would ideally be. We brought in the Strategy for Defence to try to be a little clearer with the Committee and the outside world—and with our own people more importantly—to make sure that they were focussed on what I consider to be the main effort and give us a kind of bridging strategy that would take us through to a Strategic Defence Review which will come in the very near future as all three parties are committing to holding them on.

  Q123  Chairman: Secretary of State, I think we will come on to the Strategy for Defence. I think the issue that Bernard Jenkin is asking about is the precision of the measurements that you have in your departmental strategic objective?

  Rear Admiral Richards: I think I can give you a part of the answer with respect to the contingent capabilities, and that is that the readiness metrics that we do publish, the serious or critical weakness measures, reflect in detail a link to that Department's strategic objective. That is the way in which you can judge the extent to which we are ready for dealing with the task that we may or may not be called upon to undertake. That is the link with that DSO.

  Q124  Mr Jenkin: What are the actions that the Department needs to take in order to improve performance against that target; or is it just waiting for a defence review, which is where we seem to be?

  Rear Admiral Richards: I think in this context, and we will go into it further in the readiness and recuperation point, the current operations are our number one priority and that is where the vast majority of our Force structure is focused at the moment above our planning assumptions. Beyond that, we are seeking to generate a contingent capability against those things we think are the most likely; but since a large chunk of the Force structure is taken up with respect to Afghanistan, you might expect in any case that the readiness for other contingent operations is going to be significantly reduced. The extent to which that reduction is caused by the deployment in Afghanistan or caused by the fact that we are unable to train for those other contingent operations is a subject which we have touched on with the Committee in closed session, and obviously you would not expect in this open session for us to go into in detail.

  Q125  Mr Jenkin: In summary, it seems that some of these DSOs are really not very meaningful under the current circumstances because we are putting all our effort into Afghanistan, and really we are accepting that other aspects of the Department's work basically goes to hell in a handcart?

  Mr Ainsworth: We are not putting all of our efforts into Afghanistan at all. Afghanistan is the main effort and it has to be the main effort. I do not know whether the Committee wants to disagree with that, but we have standing commitments which we have to make sure that we are capable of carrying out and we are focusing on recuperation to a small scale capability, because a small scale capability is all that is going to be practical for the immediate future with the size of the commitment that we have got in Afghanistan.

  Mr Jenkin: Does it not say something about the Department that one operation requires large parts of the rest of the Ministry of Defence to be hollowed out in order to support that one operation?

  Chairman: We will come on to the Strategy for Defence later on. David Borrow.

  Q126  Mr Borrow: Going back to the Bowman issue in terms of the audit trail and dealing with performance targets, departmental select committees have the job of scrutinising departments to ensure that their audit is correct and that they meet their performance targets. Would you say, when it comes to the MoD during a war, that to expect the same standard of audit and performance indicators is unrealistic and, if we sought to do that, would that restrict the flexibility of the MoD in actually carrying out what is its main task, which is to conduct military operations when we are in the middle of a war?

  Mr Ainsworth: I would say that we should try to the best of our ability to maintain the maximum degree of openness of audit that we can in the circumstances which we face. Precisely what would anybody have us do: give the absolute maximum effort to our current operations and make sure that audit is a close second to that; or would they have us have the completion and perfection of audit come above capability in theatre? I know there is nobody on the Committee who would have the latter. I think your question is absolutely valid, that something in the circumstances with which we are faced is bound to give to some degree. We have to try to minimise that degree so that we can satisfy the Committee and others that we have got a handle on where all of that equipment is.

  Q127  Mr Jenkins: I do not think anyone is saying "either/or" here. I think we are trying to be helpful in some regards. I think Mr Jagger might be able to help me here. The Treasury public expenditure system of 2008 and their guidelines indicate that if it were using indicators like "some progress" it is "where 50% or fewer indicators had improved". Yet when I look across and see "some progress" in the manning balance, but I know (although the RAF has dipped slightly) the Army and Navy has increased, now that does not give me "50% or fewer had improved" as "some progress"; that should be "good progress". You have got a good story to tell here but you do not seem to have put it in the manner being indicated by the guidance. That is why we are saying we require more of an indication from you about where we are improving. If we can put some quantifiable measures in there to show where we are improving I think it would be a good indicator for the Department, rather than, as we have got now, "some progress", "no progress", "some progress", "no progress", "not assessed", "some progress" or "broadly on track", whatever that means?

  Mr Jagger: I can try but it is not my specialist area. First of all, there may be a disconnect on time here, because this is the year ending March that is being referred to, and I think the considerable improvement in recruitment has happened at the latter end of last year and now. I am sure we can provide more detailed figures on the manning balance later, if you wish.

  Chairman: We will certainly come on to it.

  Q128  Mr Hamilton: Secretary of State, I have been here since 2001. At the end of 2001 we got involved in Afghanistan which I supported along with the vast majority of everyone in the House of Commons. During that period of time we have been involved in two fronts and we are now backing out of one and we are into Afghanistan. How satisfied are you that "some progress" has been made in terms of success of the military operations in Afghanistan?

  Mr Ainsworth: On the Afghan operation itself, the prism through which this is all seen back in the United Kingdom is the deaths in theatre and that tends to wipe out in the public mind and does damage to people's perceptions of the success that we are having in Afghanistan. We have lost 98 people this year and so no-one should be surprised if people are not particularly concerned about where we are. Most of our Forces are in Helmand Province and if you ask them and go to theatre, as I know that you do, you will get many of the same answers that I do, there has been considerable success over the last period of time. We have seen a substantial influx of US Forces in Helmand Province. We still control the main population centres but that means that we have been able to hand-off some of the areas that we had original responsibility for to the Americans. For instance, Garmsir in the south is now all their responsibility; Nawzad, where we had troops, the Americans now take care of; and that has enabled us to perform operations like the one that was performed in the winter of last year in Nadi Ali that brought an area of central Helmand within the control and reach of the Afghan Government; and in the summer the ISAF and ANSF operation which cleared a large part (although not perfectly yet because it takes a long while to build confidence among ordinary people after a military operation) of the very important area between Garesht and Lashkar Gah. If you go back, for instance, to 2008 where insurgents were able to mount operations against Lashkar Gah itself, we have pushed them out of some very important and very significant areas of the central Helmand belt where most of the people live, and now the governor and other agencies are able to get in there and are able to start providing basic governmental services to the people and some of the people were able to vote, not nearly enough of them; so considerable progress has been made. I think we have also made progress on the organisational side, and the degree of the way in which the civilian effort in Helmand Province is joined up with the military effort out in theatre is impressive indeed and has come a long way.

  Q129  Mr Hamilton: Could I add a third element to that. Do you think that the public has an accurate understanding of what we are doing in Afghanistan? If you do not think that, why not?

  Mr Ainsworth: No, the figures have gone the other way, and I would not doubt those figures. Why not? It is a complex situation. It is not easy to be able to explain to people, first of all, why this theatre is so important to their own security back here in the United Kingdom. There is a tendency to believe this is a faraway place and the threat comes from many and varied theatres, and we are therefore not suppressing terrorism, we are not doing anything significant that is connected to our own national security. I think that that is totally and utterly wrong. The consequences of our people not being in Afghanistan would be the pretty rapid collapse of the Afghan Government, the control of at least a large part of the country by the Taliban again, massive pressure on the Pakistanis next door at a time when they really do not need that pressure, and when they are fighting their own insurgency and really stepping up to the plate in quite an impressive way in taking on the militants in their own country, and that would bounce through into our own communities and in the wider Muslim community. There are a lot of people in the Muslim community who are desperate to resist some of the extremist ideas that flow out of these regions, these medieval notions of what Islam ought to be. Our failure I think would let them down and set them back as well.

  Q130  Mr Hamilton: The question I put is how important is it to the operations that we get the public support they require? We talk about winning hearts and minds in Afghanistan, but you are not winning hearts and minds in the United Kingdom. How are you going to deal with that?

  Mr Ainsworth: I think it is absolutely vital. Our troops can be as good as they are; their morale and their spirit can be as high as I see it every time I go out there; but if they do not believe that there is support back here at home—not only for them, which I think has improved massively over the last couple of years (the level of support for our Armed Forces has gone up considerably) but for the operations in which they are engaged—then I think that is a very difficult situation. We have suffered a lot of losses; we have had a period of hiatus while McChrystal's plan and his requested uplift has been looked at in the detail to which it has been looked at over a period of some months; and we have had the Afghan elections which have been far from perfect, let us say, and all of those things have mitigated against our ability to be able to show progress and to put that on the other side of the scales when we are suffering the kind of losses that we are. The Afghan elections are now over. We must now get the Afghan Government in the place where they start delivering on governance and action against corruption. I hope and believe we are about to get an announcement from the USA on troop numbers. I think that that will be followed by contributions from many other NATO allies, so we will be able to show that we are going forward in this campaign to an extent we have not been able to in the last few months with those issues still hanging.

  Q131  Mr Hamilton: Secretary of State, my concern is this: the three main parties in the United Kingdom—at least the three that I know about—support our efforts in Afghanistan. You base the support of the public on your operations in Afghanistan on whether it succeeds or not. I go further than that: if the three main parties in the United Kingdom agree on the strategy, agree on the involvement, why is it that the three main parties, led by this Government, are not out there arguing the case that we should be there and the reasons why we should be there, instead of individually arguing a case and at the same time criticising certain things that happen within Afghanistan? Why is it that you cannot get across the floor agreement between the three leaders arguing the case that we should be there? Why is it that we are losing that support? It is not just a question of the end judgment. If you believe in the cause, you win the argument with people, the people will support that cause. I put it to you that we are not winning that argument because people are still confused between what we are doing in Iraq and what we are doing in Afghanistan and the two are entirely separate. Over the last eight years this Government and the Opposition have been negligent in not separating those two arguments.

  Mr Ainsworth: Negligence is not a word that I would use. I think it has been problematic. I have now been a minister in the MoD for two and a half years and when I first went in there nobody was the slightest bit interested in what was going on in Afghanistan. Afghanistan was something that was going on that the media by and large had no interest in at all, the whole of the focus was on Iraq. It was extremely difficult to get anybody to pay any attention or to have any interest in it. When we drew down on Iraq, of course, then the focus shifted, and the focus shifted onto Afghanistan. Despite the fact we have got agreement in principle across the political spectrum to continue in the operations in Afghanistan that does not get us over many of the problems that cause ordinary people in my constituency and yours to doubt what we are doing and the commitment we have to it. I have tried as best I can to build a political consensus that avoids that, but it does break down. I got a little angry with my opposite number in the summer when he told people that there were vehicles in Dubai that were badly needed in theatre and we were effectively betraying our troops. Those were ridgeback vehicles that we could not possibly have got out for the start of the deployment of 19 Brigade; they were needed for the start of the deployment of 11 Brigade; they were on their way to theatre and they were actually ahead of schedule; and yet the story that was reported across the press was that we were betraying our troops. When things like that happen I think it undermines quite substantially the degree of confidence that our people have because the reaction of my constituents and yours is not, "Well, the Government needs to try a little bit harder"; the reaction too often is, "Get them out. Just get them out. If you can't provide them with vehicles then get them out". I have had that and you have had that. When you go to theatre you will struggle. The Chief of Defence Staff indeed said this only the other day to both me and the Prime Minister: "I tried very hard to get somebody to complain about their kit and I failed". That is the general response that you get from soldiers in theatre, but that is not the response we get back here; at home the perception is totally and utterly different. If we do not all work at it, and indeed work at it even in this pre-election period, and if even backbenches, never mind the frontbenches, play games off the side then we will do serious damage to what I think is a vital mission that is very, very important to the future of NATO, to the security of our country, and to our national interests. We cannot lose this in theatre; NATO cannot lose this in theatre, but our will, our resolve, can be eroded back here at home if we do not all pull together.

  Chairman: Secretary of State, I think you will find this Committee—certainly I—believe this is the most important thing that the country faces. I want to add one further point that I personally believe—I would suspect that the Committee believes but I have not asked them—that it is a very good thing that the Prime Minister writes letters of a personal nature to the families of those who have died. I personally would be grateful if you would pass on to him my gratitude for his doing so on behalf of the country.

  Q132  Linda Gilroy: Secretary of State, a moment or two ago you referred to the medieval nature of the enemy we are facing but there is a paradox about that in that they are also very sophisticated in how they use the media, and this is something the McChrystal Report points to; but what is your assessment of just how sophisticated they are? Is that not one of the gaps that Mr Hamilton's line of questioning was pointing to, that actually there is not a proper appreciation of just how sophisticated they are about manipulating people over here who are willing to play into the sort of talking down of the effort in Afghanistan?

  Mr Ainsworth: I think we have got to try and be better as well. We are in a complicated coalition. We do not want to undermine progress that is being made by the Afghan Government itself. We have got to join the bits up across the ISAF coalition and we have got to be extremely mindful in anything that we say publicly of operational security. We cannot jeopardise operational security or put our own people at risk, but I do think that sometimes because of the complexities of that coalition structure and worries about operational security that we potentially go too far and, therefore, we are not as forward leaning as we need to be in terms of explaining in a timely manner—because nobody is interested in history; once something is done and dusted it is gone and forgotten about—we have got to get as up to the front on the story as we possibly can and be able to explain to people better, as best we can, what we are doing, how we are doing it, where we fail be upfront and go out and say that and where we succeed and give people proper measures for the success. The Afghans have been pretty good at exploiting the media both in country and out of country. You saw some messaging that they were effectively targeting on the American public during the Obama consideration of the McChrystal review.

  Q133  Linda Gilroy: The Afghans or the Taliban Afghans?

  Mr Ainsworth: The Taliban. Some of the notions of society are positively medieval. The kind of things that we maybe suffered in this country a millennium or two ago they would visit on their people, but they use modern methods of communication in order to get their message across and to undermine us.

  Q134  Robert Key: Secretary of State, could we turn now to the Ministry of Defence support for high intensity operations. In May this year the National Audit Office produced a report on this and they identified in a nutshell four points: shortage of spares; shortage of pre-deployment training equipment; supply chain problems; and patchy welfare provision. What has the Ministry of Defence done since that report was published in May to implement the main recommendations of the National Audit Office?

  Mr Ainsworth: First of all, I would just try to put it into context by saying that when we get a new piece of kit and equipment, and let us take Mastiff as an example where we have had a problem with spares, the most important thing was to get that vehicle into theatre. The threat had switched: the degree of mines, of IEDs, and amount of toll that it was taking on our people was going up exponentially; we had to get that first-class vehicle out into theatre as quickly as we possibly could and we had to worry about the spares and worry about the pre-deployment opportunities afterwards. We have tried our level best to backfill both the training requirements and the spares requirement as fast as we can after that. I make no excuses for wanting to get the vehicle into theatre first in order to save lives. That is just one example.

  Rear Admiral Richards: That is absolutely right, Secretary of State. You will be aware that we have plans currently in train of delivery to generate a greater amount of equipment to support the training earlier on in the preparation for theatre, but with respect to UORs our first aim is to get the equipment into theatre as quickly as possible. It is true that in order to do that one short-circuits or makes the equipment available within the training pipeline at a later date. Similarly, because of the time taken to provide the spares, when the equipment arrives first in theatre the spares load is much reduced, and that then subsequently builds up over time. We are seeing, with respect to the large numbers of new equipments that we are putting in place, a better availability of spares, but there will always be a pressure on such a system which is designed to operate more quickly. Part of the UOR system, and one of the things that makes it more rapid in delivery as against normal equipment procurement, is that we are able to spend less time on the spares and support package than we do with respect to equipments that we buy through the core budget, and that is why it gets into theatre quicker. So there is a risk there, but it is a risk that is worth taking to deliver the new equipment in a more rapid manner.

  Q135  Robert Key: Do you say, Secretary of State, that the Department gives a high priority to introducing these measures along the lines of the NAO recommendations?

  Mr Ainsworth: Yes, they are an appropriate priority. Can I just make a comment about this story that is current about the Bulldog. This is the other end of the problem that we have. It has been widely reported in the press in the last few days that we spent £149 million on upgrading tanks that are now being used only for training in Canada. These were bought in 2006 and they were bought for Iraq, not for Afghanistan. If we recall, at the time we were running convoys into an urban environment in Basra where our people were being shot at by rockets, and some of them were travelling around in Snatch Land Rovers and the absolute urgency was to get the Snatch Land Rover back into the base and off the streets of Basra, and the Bulldog was extremely well thought of as a lifesaving piece of kit. We lost a lot of power because we got a lot of armour onto this vehicle, so, yes, there was no way it could go up and down hills or whatever. We knew the consequences of that, it was for that urban environment and it was a lifesaving piece of kit and equipment badly needed at the time. Now, somebody three years after the fact says, "Oh dear, they've spent all this money on some kit and equipment that's now only being used for training". How many people's lives would have been lost because we could not fill the gap with Mastiff alone. Mastiff was superb for the Iraq environment, and superb for the Afghan environment. We had to try to get as many Mastiff as we could and as quickly as we could but we could not do it with Mastiff alone; Bulldog filled a vital niche at the time.

  Q136  Mr Havard: You mentioned earlier on the Strategy for Defence, and my colleague, Mr Jenkin, asked you some questions about PSO and DSO targets. We have asked questions before about this. We asked about these NAO recommendations, not just in high intensity areas but in a number of other areas. To allow us to do some sort of forensic examination and understand things properly, what you said to us about the NAO was, "We have major improvement programmes underway". I ask what they are, a description would be nice and some sort of timetable, some sort of idea would be helpful. You say in the Strategy for Defence, you are going to have "a revised and relevant performance management system". What is it? Where is it? What will it look like? When will it be in place? How will it relate to these other systems? Can you please give us some better understanding of how the assessments that Robert is asking about are actually made, are then evaluated, and actions taken on them within the appropriate time that you decide is necessary? I have no understanding of that and we would like some further and better particulars, please?

  Mr Ainsworth: Maybe some of my colleagues can fill you in on some of the details of that. All I would say to you, and try to explain to the Committee what I am trying to do with the Strategy for Defence, is that a lot of these systems automatically and understandably flow from the Strategic Defence Review, and therefore the Defence Planning Assumptions and all the other methods and systems that we have to measure ourselves with in theatre. The reality of the situation that we are in now is that we have another Strategic Defence Review due in the relatively near future, and we have an ongoing operation that is well above planning defence assumptions that will go on beyond that date. So we really do need a bridging methodology that makes certain that the Department is focused on what is absolutely important in that interim period, and that overwhelmingly is Afghanistan. Afghanistan has to be the main effort, and, yes, of course, these other standing commitments and what we can realistically—while we are in still in Afghanistan the size that we are—regenerate as contingent capability is important. We have got to have that focus.

  Chairman: Secretary of State, I am going to stop you there because I think you are answering a question that Dai Havard did not ask.

  Mr Havard: Which someone else is about to ask!

  Q137  Chairman: I am also conscious of the fact that we are going to finish by lunchtime and we would like it to be lunchtime today! Could you please consider the question that Dai Havard has just asked, and it may require a written answer because of the detail of what he asked.

  Mr Ainsworth: Shall I ask Rear Admiral Richards just to say a few words?

  Mr Havard: All I am trying to get to is that underneath a word like "methodology" there is practice and process and we need to understand what that practice and process is, and what the timescale and what the evaluation, the metrics and everything else, are involved with the individual separate processes and how they combine collectively.

  Q138  Chairman: This is a question which sounds as though it needs a schedule of some detail.

  Rear Admiral Richards: One quick step back if I may, Chairman. With respect to how we measure ourselves, and this links to PSAs and DSOs, the whole of our Defence Planning Assumptions, which were published in a written ministerial statement of 11 February this year, are pointed at the Department's obligations under our Departmental Strategic Objectives and PSAs. So we organise ourselves, we focus ourselves in delivering those Defence Planning Assumptions against those targets. We then measure ourselves in terms of, I think it is, the 18 military tasks for which we generate Force elements at readiness capabilities which we also report against, those serious or critical points. We report against those at the moment in a process called the "balanced score card". This has many benefits but where it fails is in the way in which it directs senior management about what you might do with respect to measurement. As a result of that, my team have been taking forward a new focus on a strategic performance management system, which the Defence Board, not the ministerial committee yet but the Board, took about a month and a half ago and agreed that we would put into a dummy run, which we will be generating for the new year and for a full measured system against the target of 31 March this year.

  Chairman: That is very helpful to know. Could you write to us giving more details, please.

  Q139  Robert Key: Could I ask two very brief questions. We all understand that the defence budget is squeezed given the national financial situation, and that you have to reprioritise. Is it true that the St Athan Defence Training Academy has now slipped way to the right because of constraints on your ability to spend?

  Mr Ainsworth: No.

  Q140  Robert Key: That is absolutely on schedule?

  Mr Ainsworth: Despite the growth there has been in the defence budget, yes, of course we are under some pressure with the fiscal and economic situation in the operations that we are conducting. As of yet, the assessment we have had is that it has slipped in the past, as you know, but there is no further slippage that I need to report to the Committee.

  Q141  Robert Key: The second question, arising from the NAO Report, is they expressed concern about welfare provision for forward Forces. Could you just take this opportunity to explain what are the Christmas arrangements here for post and parcels and for free talk time, because that is something, certainly at a constituency level, there is considerable concern about?

  Mr Ainsworth: Our main problem every year is that with the generosity of the British public and the focus that there is on the sacrifice of our people unsolicited mail swamps the system and prevents vital and much desired personal parcels and messages from getting through to our people in a timely way. That has happened before. We have tried our level best to guard against it. We have tried not to turn off the generosity, because that is the very last thing we want to do, but we have tried to direct people to proper channels through which they can show their generosity and their love. There are various charitable organisations which will organise in a way that we can deal with and in a way which would be wholly appreciated by our troops at Christmas and not just swamp the system. I go out to British Forces Post Office at Christmas—I did last year—and it is a complete and absolute nightmare. There are just unaddressed "Commander, Helmand Province" gifts and some of them are perishables as well. There are cakes and all kinds of lovely stuff in there and there is tonnes of it, absolutely tonnes of it. People are trying to sift through it in order to get to one that is from a fiance[acute] or a mother to a son and make sure that that gets delivered on time. That is our biggest worry. We will be putting in the usual announcements to enable people to talk to each other at Christmas as best we can. This is a very difficult theatre in which we are operating.

  Chairman: Thank you very much. Moving on to manning issues.

  Q142  Robert Key: It is very encouraging that recruitment has been rising this year, but do you have the capacity within the training system and budget to take advantage of the extra inflow of personnel?

  Mr Ainsworth: It has also given us some financial difficulties, the fact that recruitment has risen more rapidly than we had assumed. I am not being told there is a problem in the training capacity by any of the three Forces, but I will check it out and come back to the Committee if that is not so.

  Q143  Robert Key: I understand that another of the problems that has arisen from increased recruiting, which is a very good thing, is that there is now a shortage of accommodation because of the additional recruitment, that at a local level there is a real problem there. Is that the case?

  Mr Ainsworth: At places like Catterick, you mean?

  Q144  Robert Key: At garrisons around the country.

  Mr Ainsworth: In the training establishments?

  Q145  Robert Key: Absolutely, and for married quarters as well?

  Mr Ainsworth: I have not had any reports. You mean the overall accommodation, whether or not we have got enough Service family accommodation or whether or not we have got enough single living accommodation?

  Q146  Robert Key: No, I mean very specifically for new recruits?

  Mr Ainsworth: You mean in the training establishments. I have had nothing back that places like Catterick are not coping but I can check it out.

  Q147  Robert Key: I would be very grateful if you could perhaps look into it and let us know. It is obviously another pressure on you?

  Mr Ainsworth: Yes.

  Q148  Robert Key: What about the pinch-point trades here? The figures that we have seen recently are a bit alarming, to be perfectly honest. If you look at the Royal Navy Lieutenant Commander XSM Command Qualified, there is a shortfall of around 40%. Harrier GR7 Instructors, a shortage of around 45%. In the Army there are pinch-points here in avionics technologists, in all sorts of these pinch-point areas. How are you addressing that?

  Mr Ainsworth: By focused packages aimed at retention of the individuals in many, many circumstances, but it is enormously difficult and there are often time lags on some of these recruitment issues to compete with the commercial sector when they target highly skilled young people. Our ability to do so on the financial package alone is very difficult. We try to target specific allowances and inducements for people to come and to stay but it is difficult.

  Rear Admiral Richards: With respect to the pinch-point trades in particular, and some of those are very senior officers, you are not looking at recruiting necessarily to deal with that problem, you are talking about retention. We have seen significant reduction in voluntary outflow in recent months which will and is already contributing significantly to the pinch-point trade position improving. I think we have seen an improving picture over the last several months and we would expect to see that continuing. Some of these things take a very long time to deal with.

  Q149  Robert Key: Could I ask you just to clarify for us the difference between first contact recruitment—people turning up to a recruitment office and saying "I want to join up"—and the number of people who are eventually recruited and go into training. These are two different ideas, I think. Whilst it has been very good to see an increase in actual recruitment and training which I believe, and perhaps you could confirm, has led to the military being able to be more picky about who they take in, is that true?

  Mr Ainsworth: We are seeing some evidence of that both in terms of the quality and quantity of people signing up to join the Armed Forces and that ought to, although I have had no specific evidence presented to me yet, help us with what the Army dreadfully call "wastage rates" in training. If they are able to be more selective then we are going to be able to get more people through training and so it ought to be a virtual circle. I have not seen figures which suggest that is the case yet.

  Rear Admiral Richards: We have not got definitive figures on that, but I have embryonic evidence that the situation on wastage rates is improving significantly and we are getting many more people out of the training pipeline than we previously did, all of which is helping our current position to come into manning balance in the very near future if we are not there today.

  Q150  Robert Key: One final point, Chairman, on this. I have heard reports that between October 2008 and October 2009 the number of initial contacts at recruitment centres has fallen due to the bad publicity caused by the number of deaths in Afghanistan and the associated ceremonial of them coming home, which has actually put people off from signing up. Is that correct?

  Mr Ainsworth: Our recruitment position has improved, and improved quite considerably. How much of that is down to the increased recognition that there has been of our Armed Forces and the increased esteem within which they are held and the recession, it is very hard to say. I would have thought there is no doubt there is still some resistance from mothers and family members and attempts to discourage people from joinin, but we have seen an improvement, not the other way round.

  Q151  Mr Jenkins: With regard to pinch-points, I am not sure I got the answer I would have liked, to be honest, and I want to pursue it a little bit more. Whilst I recognise that anaesthetists are quite a difficult post to fill and you have taken them out of the medical schools or wherever, when I see the Leading Aircraft Engineering Technician in the Navy, of which we are 300 short, you can imagine it is a long training programme possibly but the youngsters would want to become involved in that programme while they come out as a qualified technician, and if we have not got those people the ones we have got we are overworking, they are overstretched, with family breakdowns and family problems and they leave the Services to get a job elsewhere so it is reinforcing the problem. I do not have the feeling that you have got a strategy that is really fit at the moment to deal with these problems. I know it is difficult when you have got very small numbers but with large numbers it is not so difficult because you can put a training programme in to deal with it. When we ask you what are you doing about it we would like a more positive response, please?

  Rear Admiral Richards: I cannot speak—although I am a Naval aviator—specifically to the Leading Airman Engineering training, but I do know that for many of these technical trades it takes three or four years to get to the Leading Rate level. The improvements that we have seen in recruiting that we have reported recently are a function of the last six or seven months. Our ability to translate that improvement into an improvement in pinch-point trades is challenging. With respect to the focus that the Services give to these pinch-point trades, they are very significant. They recruit to the maximum extent possible that they can into them, but for the technical trades they require people of a certain calibre before they can start the training pipeline. On the availability of those people, the Services are competing with a range of employers for good quality people. There is a significant focus on doing that, but the challenge for us is the time it takes both to recruit the person in the first instance and then to train them to the Leading Hand, Petty Officer, or Lieutenant Commander level.

  Q152  Mr Havard: I think the question implicit in what my colleague is asking is where are the emergency training programmes for large groups of people with these sorts of skills that are not anaesthetists, doctors and so on? Where is that sort of effort coming, because we do not seem to see it? We would have thought with the volumes like this that that might be an approach you might look at.

  Mr Ainsworth: Let us just get one thing into context, and not give people the impression that it is so. There is no shortage of medics in theatre.

  Q153  Mr Havard: I am not talking about medics, I am talking about people like aircraft technicians, where there are 300 missing?

  Rear Admiral Richards: I would say, again, this is not my specialist area in terms of the training, but in practice across our Force structure we are very focused on ensuring that the right levels of training and experience are linked to the individuals. We have a requirement to ensure, if they work on aircraft and other things, that they get the appropriate levels of training. Short-circuiting the training and experience pipeline is not something that we are looking to do.

  Q154  Mr Jenkins: Why is it you are saying there is nothing you can do about this problem? Believe me, there is something you must do about this problem. We are asking you what must we do now? What plans have you got for meeting some of these pinch-point trade gaps? That is all we are asking.

  Mr Ainsworth: I gave evidence to the Armed Forces Pay Review Body in which they have been notified of other pinch-points and pointed to our need for them to take that into account in the remuneration package they are bringing forward, so this is not something we are complacent about. We know it has to be addressed. It is a moving situation. We are hopeful that some of it will sort itself out over time as the recruitment position increases, but there are no easy answers. We have got to try and focus some of these incentive packages. We have got to step up our recruitment as best we can and fill the pinch-point trades as best we can.

  Q155  Chairman: Secretary of State, you said there was no shortage of medics in theatre, if there is a 50% shortfall in Radiologists Major plus, a 46% shortfall in Radiographers Corporal, a 53% shortfall in Anaesthetists Major, then if there is not a shortfall now there soon will be.

  Mr Ainsworth: If you go out into theatre, as I know that you do, Chairman, you will see the variation where the people are coming from who are manning our field hospitals in Bastion and the rest of it. At any one time there will be a higher proportion of regulars; a higher proportion of reservists; from time to time we will hand-off part of that capability. The last time I was out there there were a lot of Danes who were providing a big part of the medical capability; but I have never seen a shortage. I see a variation in how we are managing to fill all of those posts, but I have never seen a shortage and I do not think you have either.

  Chairman: We are relying increasingly heavily on a smaller and smaller group of people. Voluntary outflow is something that you did mention.

  Linda Gilroy: Perhaps if I could just ask for some specific information on the last point. Looking at the different trade shortages in the Royal Navy, Army and RAF there are shortages of medical nursing officers listed under the Army but not under the Navy. Earlier on you referred to some uncertainty about the Naval Reserve and the numbers in the Naval Reserve; but the Naval Reserve is probably backfilling a lot of the shortages in those areas. I would be very interested to know what the manning level is in this respect. It is probably not something you could produce now, but if you could give the Committee a note on it that might be helpful in understanding the nursing side of shortages particularly.[1] On voluntary outflows, the equation that makes up readiness and recuperation voluntary outflows are a very important part of that, and the Department reported an improvement to voluntary outflows, yet earlier, when we were talking about the Joint Personnel Administration not having the figures for the Army, which represents over half of the strength of the Forces, I think the last available figures were for 2006, so how can you actually be sure that the voluntary outflow is in fact improving without that key data?

  Rear Admiral Richards: In addressing the lack of JPA information previously, we have done a lot of work with DASA recently to improve that position, so I think there is an improving position on the JPA information. Secondly, whether stuff is input into JPA or not, we have the reports of individuals on the ground in the Commands and elsewhere, and in regiments, battalions, naval ships, an understanding of the number of people who are applying to leave the Services, and that is significantly down. The statistics for it take some time to flow through. I do not have a definitive number to give you now, although we will have DASA figures coming out shortly, but the reports from on the ground, which I need to get so we can take action in respect of recruiting and other measures, are that the situation on voluntary outflows is significantly improving and the voluntary outflows are reducing significantly.

  Q156  Linda Gilroy: So do you really have sufficient data to target retention initiatives in the Army to the best effect? From what you have said, you have but it is not perfect yet.

  Rear Admiral Richards: For the reasons that we know, it takes time to grow people for pinch point-trades. We are absolutely clear that we will need to continue to use retention initiatives against those pinch-point trades to address the point that Mr Jenkins made earlier, which is to use every best effort to ensure that we are both retaining the people that are in those pinch-point trades and recruiting and training people into them. So whatever the voluntary outflow does, in respect of the pinch-point trades I think it is unlikely that we will see a diminution in the financial retention incentives.

  Mr Jagger: You asked if we had the data we needed to make those judgments. There is some confusion about the statistics out of JPA. Every time JPA is mentioned, people think, "Oh, we can't trust the numbers." That is absolutely not true. There are some technical issues about providing statistical quality data, which is why you have not seen all the Army numbers, but we have very, very good data from JPA and other sources on the Army and particular trades, outflow and lots of other things. We can provide more detail in a written answer if that would be helpful.

  Q157  Linda Gilroy: I was just going to say is that publishable in some form so we can get a sense of what you mean by that?

  Mr Jagger: The process we can write and tell you about, yes.[2]

  Q158  Linda Gilroy: Are the measures in place to improve retention, such as the commitment to bonus working? Are there any deficiencies in what you are able to offer to people to retain them, particularly in those important pinch-point trades?

  Mr Ainsworth: There is always a balance, because it all comes out of the budget at the end of the day, and you have to try and get a balance of what you want the bottom-line offer to the Services to be. That is something that the Armed Forces Pay Review body has to juggle with all the time: how much of the money it puts into pinch-points, how much of the money it applies to the bottom line, uplifting salaries. We have seen in the feedback surveys that we do with our people, which are pretty good; they have held up quite high, but pay is a growing consideration among members of the Armed Forces.

  Q159  Linda Gilroy: Satisfaction with Service life does not rate quite so well. Only half of the Other Ranks personnel surveyed said they were satisfied with Service life. Is that an acceptable level? Are you satisfied with that?

  Mr Ainsworth: No, you cannot be, but it has not fallen back, has it? The one that has fallen back, the one that has changed, is the significance of remuneration.

  Q160  Linda Gilroy: That is just slightly less than half. The Officer Ranks are showing overall 64%, and presumably you would want to see it improve. Operations and overstretch and the impact of Service life on family life are cited as amongst the most common reasons for leaving. How concerned are you by the numbers exceeding the harmony guidelines and the way in which that has an effect as part of this whole equation on readiness and recuperation? You will know that this time last year there were something in the region of 2,000-3,000 serving personnel from the Devon and Cornwall area, and everybody is wondering at what point they are going to have to redeploy. Families, what they are talking about and all these issues work together to make up how people feel about whether they are going to stay or whether they are going to go, how these outflow figures are working. What would be your assessment? How concerned are you at how all of that works together? Do you think you are really stepping up to the mark to do enough?

  Mr Ainsworth: As I tried to indicate earlier, this is a package and you cannot retain the calibre of people and the numbers of people that you want by pay alone. It is the offer to people entering the Services. Of course, they look at harmony and accommodation as well as money and the bottom line, and it is also how they are thought of by the population at large as well. There has been some improvement in harmony and it is being managed in order to try to spread the load better than it was. I am surprised with us getting out of TELIC that it is not falling faster but that might be my own expectations having been too high as to how quickly we can get back—

  Chairman: That is what we are going to get on to now. The Committee will now move on from the Annual Report and Accounts to ask some questions now about the Green Paper and about Readiness and Recuperation.





1   See Ev 48 Back

2   See Ev 48 Back


 
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