Ministry of Defence Procurement: Accountability

Baroness Smith of Newnham Excerpts

Wednesday 29th March 2023 Lords Chamber

[Lord Harlech (Con)]

My Lords, the problems the Ajax programme has faced have long been acknowledged, but it is turning a corner and progressing towards the delivery of this new generation of armoured fighting vehicles for the British Army. The Statement to the House on 20 March set out the progress and outlined a new realistic schedule to bring this next generation of armoured fighting vehicle into service. Ajax remains at the heart of the Army’s plans for a modernised fleet of armoured vehicles. It is part of around £41 billion of investment that His Majesty’s Government are making into Army equipment and support over the next 10 years, to ensure that this nation can address threats of the future, not the past.

My noble friend asked a number of questions, so I will comment on Clive Sheldon KC’s review. Defence Ministers commissioned this independent review to identify lessons and make recommendations to help the MoD deliver major programmes more effectively in the future. The draft report is currently under the process of Maxwellisation and will be published as soon as possible.

[Baroness Smith of Newnham (LD)]

My Lords, in its Ministry of Defence: Departmental Overview 2021-22, the National Audit Office noted that, of major programmes, nine were rated red, 33 were amber and just three were green. Being rated red suggests that successful delivery is “unachievable”. Does the Minister think this is acceptable? Can he explain what is being done to rectify the situation?

[Lord Harlech (Con)]

My Lords, my interpretation of what red means differs somewhat. Defence proudly delivers some of the largest programmes across government. These processes are complex, and the delivery confidence assessments are an important tool to provide challenge and support for successful delivery. A project being rated red or amber does not necessarily mean that it will not be delivered on time or budget; it means that we have identified risks that need managing. We see this as effective programme management. The MoD will continue to introduce changes to improve our management of major projects.