Defence: Better Defence Acquisition

Lord Lee of Trafford Excerpts

Monday 10th June 2013 Lords Chamber

[Lord Astor of Hever]

My Lords, I thank the noble Lord for his support. I have read his excellent, well thought-through letter to the Economist. I share the noble Lord’s desire that this important subject should be above politics. The Secretary of State and my honourable friend the Procurement Minister are keen to brief Peers, individually or as a group, and to hear any suggestions, ideas or criticisms that anyone has. We want to get this right and, as the noble Lord said, it is above politics.

We have not yet decided the proportion of the defence budget but I will get back to the noble Lord when we have. As to the question about the United States, I have seen correspondence with our counterparts in Washington. There is a small amount of concern but they are approaching this issue in a positive way. They think that they could learn a lot from us. We will be the first country to do this. The noble Lord will be well aware of what happened down at Aldermaston. The United States feels that it has a lot to learn and has approached relations with us constructively. Again, I am quite happy to discuss outside the Chamber what the Americans have raised. On the whole, they have been very positive.

[Lord Lee of Trafford]

My Lords, I thank my noble friend for repeating the Statement and thank him and his officials for replying to some of the detailed questions that I raised in the Queen’s Speech debate. I had two specific questions for my noble friend. I asked what restrictions would be placed on the GOCO’s freedom to operate, specifically between buying off the shelf and sustaining our national strategic capabilities. The reply that I received is:

“As now, MOD and HMT will continue to approve procurement business cases. As part of this, MOD will assess and agree the proposed procurement strategy, which will enable the department to take issues such as these into account”.

If the MoD and HMT are going to second-guess what the GOCO is doing all the time, it is difficult to discern what freedoms the GOCO will actually have. Indeed, that is the very fundamental point of the GOCO.

Secondly, I asked what cognisance the GOCO would take of regional employment issues and the need to encourage SMEs, rather than support our major national contractors. The reply was:

“We have no reason to believe a GOCO would need to move the new organisation to different sites so it is unlikely to have any major impact on regional employment”.

With respect, I must say that that was not my question. I was not suggesting that the sites of the GOCO organisation or operation would have to be moved. I was asking whether the GOCO would be able to take into account the regional employment situations that arise in defence procurement. Will it have that flexibility?

[Lord Astor of Hever]

My Lords, I congratulate my noble friend on the outstanding questions that he asked during the Queen’s Speech debate. There were quite a lot of them and I was not able to answer them at the time or we would have been here even later than we were. However, I took them back to the department and the officials there were impressed by the depth of the questions. I thought it might be helpful to the House to make copies of the questions and the answers, so I have brought along copies which I am happy to distribute afterwards to any noble Lord because my noble friend’s questions were spot-on. I hope that, apart from the one question that was not properly answered, we have made a big effort to answer all the other questions accurately.

Taking my noble friend’s second question about regional employment issues first, the proposal will not address any specific issues of regional employment policy. The policy on this, as with other matters, will remain with central government and the Ministry of Defence.

As for second-guessing the GOCO, my noble friend will be aware that we will need to make decisions about what the Armed Forces need and then the GOCO will see them through.