Oral Answers to Questions

Debate between Alison Seabeck and Philip Dunne

Monday 23rd February 2015 Commons Chamber

[Mr Dunne]

As my hon. Friend is well aware, we are anticipating that a strategic defence and security review will take place following the general election later this summer, so all the planning assumptions that were introduced in the 2010 review will be reconsidered in 2015. As I mentioned earlier, as far as the frigate contract is concerned, the current planning assumption is for a like-for-like replacement of the Type 23 class.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

That was a very interesting comment from the Minister given that the Prime Minister recently announced that both carriers would be operational. Clearly, it also has implications for the equipment programme. Is the Minister saying that he intends to build 13 frigates for carrier support?

[Mr Dunne]

I just explained in my answer to the previous question what the planning assumption is for replacing frigates. I can reconfirm to the hon. Lady that within the equipment plan is the capital cost of constructing both aircraft carriers, and they are coming in on time and on budget, in stark contrast to what happened under the previous Government.

Oral Answers to Questions

Debate between Alison Seabeck and Philip Dunne

Monday 12th January 2015 Commons Chamber

[Mr Dunne]

As the hon. Gentleman knows full well, there was a recognised capability gap when maritime aircraft were taken out of service in SDSR 2010. The Government, as with previous Governments, operate in conjunction with our allies around the world. We provide aircraft to Baltic patrol and transport lift aircraft to the French. On occasion, our allies provide us with maritime patrol aircraft.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

I was glad to hear the Minister’s answer to the question regarding Russian submarines infiltrating our waters.

Why, after the major equipment programme has been let, are his Department and UK Trade & Investment still scurrying around trying to hold the manufacturer to a pre-contract offer of safeguarding or creating 10,000 jobs in the UK? We now know that the Scout programme he mentioned will be built in Spain, Germany and the Netherlands, and that the core jobs in the UK are fewer than 400. That has happened on his watch. Why was the economic case for bringing the work to the UK not done before the contract was finalised? The Secretary of State spent all that time trumpeting what seemed to be a huge success when, in fact, it is not.

[Mr Dunne]

As the hon. Lady may recall, the original proposed contract, which was considered under her Administration, was for more than double the number of vehicles for which we have contracted. Consequently, the number of people potentially employed is significantly lower. However, the contract for the Scout vehicle, at £3.5 billion, is the largest contract that the British Army has received, and involves some 160 companies, predominantly in the UK. It will sustain 1,400 jobs in the UK, and we are currently actively exploring the opportunity for the onshore assembly of vehicles, from 101 to 589.

Oral Answers to Questions

Debate between Alison Seabeck and Philip Dunne

Monday 20th October 2014 Commons Chamber

[Alison Seabeck (Plymouth, Moor View) (Lab)]

The reported bonus package allowable under new Treasury rules for the new chief executive officer of Defence Equipment and Support would certainly embarrass a banker. In the interests of openness and accuracy, will the Minister confirm exactly how many freedoms and flexibilities there will be? Importantly, have the proposed managed service providers been told about them, and if so, please will he make them available to Members of the House and the shadow defence team?

[The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)]

The hon. Lady is referring to the recent advertisement for the new chief executive of DE&S. I think that she and the whole House will agree that for one of the largest procurement programmes in Government—£14.5 billion a year out of a £164 billion programme—we need to get the best person for the job, who needs to be adequately rewarded. I will leave it at that, because the recruitment process is in progress. As far as the MSPs are concerned, the freedom allows us to recruit 25 people within DE&S at in excess of the Prime Minister’s salary.

Oral Answers to Questions

Debate between Alison Seabeck and Philip Dunne

Monday 14th July 2014 Commons Chamber

[The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)]

My hon. Friend is right to draw attention to the great success of the air show at RAF Waddington, which I believe he attended the other day. He is also right to point out that the runway is in need of routine maintenance—essentially, a new runway needs to be laid, which will take 59 weeks starting in September—and therefore it will not be available next year. The RAF is undertaking a review of all air show commitments for next year, so we will be in a better position to respond on 2016 when that review has been completed.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

The Government made a clear decision in the 2010 SDSR to withdraw the important Sentinel capability from service. There is now speculation that it is to be retained, although it is not named in the news release that has gone out—it sort of slipped under the media radar. Does the Secretary of State accept that, like the F-35 U-turn costing millions, this is another example of poor strategic decision making and more back peddling?

Defence Reform Bill

Debate between Alison Seabeck and Philip Dunne

Tuesday 29th April 2014 Commons Chamber

[Mr Dunne]

What I am guaranteeing is that a report will be presented to the House before the commencement of part 1 comes before the House in an affirmative resolution. It will be up to the Government of the day to decide at what point to publish that report and therefore what interval to leave between publication and moving an affirmative resolution in this House. What I am not guaranteeing is the duration of that interval.

These Lords amendments will make a good Bill better. They show that the Government have listened to the concerns raised during the Bill’s passage through both Houses. The changes to the Bill covered by the Lords amendments will ensure that Parliament has the information it needs on these important aspects of our defence. I therefore ask hon. Members to agree to Lords amendments 1 to 7 and to reject the Opposition amendment to Lords amendment 7.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

Labour Members associate themselves with the condolences offered to the family and friends of the five servicemen lost so very tragically while serving their country. Their loss is deeply felt, particularly by their colleagues and close friends here in this place, and we acknowledge that loss.

Let me start by discussing the proposals to part 2 of the Bill. The Minister has talked about Lords amendments 1 to 5 to clauses 33, 39 and 42, which deal with the single-source procurement contracts. Labour Members welcome the amendments in principle, because they take forward the recommendations of the Delegated Powers and Regulatory Reform Committee, and because they make sensible changes to simplify this legislation. It does indeed make sense to use one statutory instrument for all the regulations under part 2, as Lords amendment 1 achieves, along with the accompanying amendments—the technical changes that follow. Baroness Jolly in the other place explained the logic behind these amendments, which allow all the regulations under part 2 to be made in one statutory instrument; there is also provision for the maximum penalties to be made under the single- source contract regulations, rather than in separate regulations.

My colleague Lord Tunnicliffe, who did sterling work in the other place speaking on behalf of the Opposition, said he needed to see the proposal in writing before deciding whether there might be a problem. Having seen it in writing, Labour takes the view that these are largely technical amendments to which we have no objections. However, there are some concerns about the way in which impact assessments are being carried out by Departments on new regulations. The recent Regulatory Policy Committee report, published last month, on the improvement of the evidence base for regulation suggested some serious weaknesses in the way in which Departments were estimating the impact of new regulations. Indeed, only 75% of the first-time impact assessment submissions were fit for purpose, down from 81% in 2012. Will the Minister confirm that the proposed change has been given the green light and whether there are likely to be any problems for that Committee? Lords amendment 5 addresses two more recommendations of the DPRRC. As the Minister stated, it is purely technical and we have no problems with it at all. The Opposition support the work done by the DPRRC and on both sides of the House of Lords and we welcome that group of amendments.

--- Later in debate ---

[Mr Dunne]

I am intrigued by the selective amnesia from which the hon. Lady appears to be suffering. Does she recall the passage of the Companies Bill under the previous Government, as no fewer than 250 amendments were proposed for consideration by the House in the final two minutes of debate?

[Alison Seabeck]

The Minister is quite right to make that point. It is deeply frustrating for Back Benchers and for the public to see legislation being rushed through Parliament. There are lessons that Members on both sides of the House can learn—

--- Later in debate ---

[Mr Dunne]

It is not for me to determine what may happen in future in an area of the Department for which I am not responsible. My hon. Friend needs to recognise that the cost of training and bringing a new entrant into the Army Reserve is considerably higher than the cost of an already-trained regular transferring, where the cost is, in essence, negligible. The rationale for providing an additional bounty for the regular is that the cost is equivalent to what we are paying to train up a raw recruit into the reserves.

The hon. Member for Plymouth, Moor View asked where the corporate plan and the framework documents stand in relation to DE&S-plus. I am pleased to be able to inform her and the House that we will be placing those in the Library and publishing them shortly.

The hon. Lady asked about the costs of the exercise. I think she was trying to get me to predict the future cost of a subsequent GoCo exercise. I like to think of myself as a clairvoyant in some areas, but I cannot possibly determine what the rates of consultant advice might be at some indeterminate point in the future, so that was a question incapable of an answer. She asked specifically about the costs that we incurred on the previous exercise. I gently point out to her that the answer I gave on the cost of the GoCo element was a subset of the cost of the matériel strategy as a whole. That is why there is a difference between the £7.4 million figure and the £28.9 million figure that we gave to the hon. Member for North Durham (Mr Jones) in response to a question.

We have had a good debate this afternoon. It has been good natured—

[Alison Seabeck]

I thank the Minister, who has been helpful and charming throughout this whole process. I wonder whether he will indulge me in putting on record my thanks to the Officers of the House and to all the Members who have contributed to this debate. I am sure that he is about to do the same.

[Mr Dunne]

Thank you, Madam Deputy Speaker, for indulging so many Members of the House in an opportunity to use time that is rarely available to us to pass such niceties and congratulations across the Chamber. Yes, the hon. Lady’s remarks are absolutely reciprocated. We have had good support from the Officers of the House and from Members of the House throughout the Committee stage and all stages of the Bill. We have also had considerable support in the other place, where there was a great deal of interest not only from the former Chiefs of Staff who sit there but from many other Members on both sides of the House. I thank the hon. Lady for her contribution. I also thank the hon. Member for North Durham, who aided and abetted her throughout the Committee stage. I place on record my thanks to my colleague, Lord Astor of Hever, who took the Bill through the other place in his customary exemplary style.

This is an important Bill that will help transform the way in which we procure equipment for our armed forces and the way in which we use our reserves. I am pleased that it will now proceed to Royal Assent.

Lords amendment agreed to.

Lords amendments 2 to 6 agreed to.

Clause 49

Commencement

Amendment (a) proposed to Lords amendment 7.— (Alison Seabeck.)

Question put, That the amendment be made.

International Military Sales Ltd

Debate between Alison Seabeck and Philip Dunne

Tuesday 11th March 2014 Westminster Hall

[Mr Dunne]

My hon. Friend pre-empts the conclusions to my remarks, but I can confirm that we anticipate a resolution being possible, ideally without recourse to the High Court action in June. We would be happy to see the parties engage to reach a settlement on the outstanding issues before it gets to court. We think that can be done irrespective of the sanctions regime. Once a settlement has been reached to agree a final amount, the payment of that amount becomes a matter for the prevailing sanctions regime in place at that time. I agree that those are separate issues, but the ultimate payment cannot be made while the sanctions regime is in place.

I want to mention a couple of other factors that the House needs to be aware of. All the negotiations that have taken place on this matter have been conducted by employees of IMS on a confidential basis, in turn routinely channelled through legal representatives. Also, given the title of this debate, I should like to clarify the relationship between the Ministry of Defence and IMS. IMS is a wholly owned subsidiary of the Ministry of Defence; all but one of its 20 million shares are held by the Secretary of State for Defence and the other single share is held by the Treasury Solicitor. It is governed by the Companies Act, with accounts filed in Companies House. The company formally ceased trading in 2010 and now exists purely to resolve the disputes that I have already touched on.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

rose—

Oral Answers to Questions

Debate between Alison Seabeck and Philip Dunne

Monday 3rd February 2014 Commons Chamber

[Mr Dunne]

This Department, under this Government, is well aware of the benefits of prompt payment and the importance of cash flow to SMEs. That is why not only are we paying our suppliers on time, we are also encouraging them to pay their subcontractors within 30 days of receipt of a valid invoice.

When this issue was raised in November I inadvertently misled the House and I would like to put the record straight. I informed the House that the Ministry of Defence had incurred a single late-payment penalty on only one invoice out of some 4 million. It has now come to my attention that in fact we paid almost 5 million invoices last year—a penalty payment rate of 0.00002%.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

It would be churlish of Labour Members not to acknowledge the good work that MOD officials in particular have been doing, not least because they are protecting a supply chain that often produces extremely specialist products. What discussions is the Minister having with small and medium-sized businesses that may be affected by the reported 20% efficiency savings sought in the support contracts about the way that prime contractors may pass that 20% down the line to protect their own losses? Getting paid on time is one thing, but losing one’s business is another.

[Mr Dunne]

I am glad the hon. Lady asked me to comment on that. We are engaged across the supply chain in seeking to extract maximum efficiencies for the taxpayer from MOD procurement. I am engaged in SME conferences with the defence industry right across the country. Indeed, I intend to come to Plymouth in the not-too-distant future, and the hon. Lady may like to join me.

Oral Answers to Questions

Debate between Alison Seabeck and Philip Dunne

Monday 16th December 2013 Commons Chamber

[Mr Dunne]

My hon. Friend is quite right. This Government are getting helicopter capability upgraded and in service, in stark contrast to the Labour Government, who left eight Chinook helicopters languishing in hangars for years.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

I draw the House’s attention to my entry in the register.

We know that the UK has strength and depth across helicopter design and development—I have visited AgustaWestland and spoken to other manufacturers—but we need support for the future development of both rotary and fixed wing. In the light of recent reports that the next generation of fighter aircraft may have to be bought specifically from the US or Asia, what steps is the Minister taking to ensure that we not only protect the skills in the UK but meet our future defence needs?

[Mr Dunne]

I am intrigued that the hon. Lady is seeking to divert the question to fixed wing from rotary wing. We have a clear strategy to replace fixed-wing and helicopter capability over the next period. On the joint strike fighter, a 15% share of that global programme is being manufactured here in the UK through the BAE Systems and Rolls-Royce supply chains.

Oral Answers to Questions

Debate between Alison Seabeck and Philip Dunne

Monday 4th November 2013 Commons Chamber

[Mr Dunne]

I think that my hon. Friend is referring to facilities management contracts which are being placed on a regional basis. The contractors will of course undertake to use SMEs in their supply chain, but it will be up to them to decide where they place their contracts, so I cannot give my hon. Friend any specific reassurance relating to how many of the subcontracts will go to Staffordshire companies.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

Although reassuring in many respects and full of detail, the Minister’s response will not give much comfort to SMEs that hold subcontracts with Serco and are awaiting the outcome of the Cabinet Office review, which I assume has been further delayed following this afternoon’s announcement by the Serious Fraud Office. This matter is of serious concern to, for instance, those involved in the consortiums that are bidding for the GoCo. When does the Minister expect a firm decision from his colleagues on whether the MOD can let further contracts to Serco?

[Mr Dunne]

As the hon. Lady said, there has been an announcement following the Serious Fraud Office inquiry into two contractors, which was first highlighted by the Ministry of Justice in its announcement of 26 September. I cannot give her any information about when the SFO will complete its inquiries, and she would not expect me to do so. Until that has happened, we shall not be in a position to make any comment on Serco itself.

Oral Answers to Questions

Debate between Alison Seabeck and Philip Dunne

Monday 2nd September 2013 Commons Chamber

[Mr Dunne]

As I have just said to the hon. Member for Coventry South (Mr Cunningham), until we receive the bids for the GoCo option we will not know either the costs of implementing that option or the benefits the MOD will receive. The final value-for-money case can be completed only once that information is available to us.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

Proposals for DE&S include greater involvement of the private sector, as we know. We also know that a very large number of private companies already contribute significantly to MOD projects. However, in the light of the very recent public failures and the fact that the GoCo tender process is under way, will the Minister tell the House what discussions there have been across Government and with the Justice Secretary specifically about companies that have been found to overcharge, or worse, and their ability to do business with the Government and MOD in the future?

[Mr Dunne]

I can confirm to the hon. Lady that a review across Government is being undertaken into the competition currently being managed by the MOD. We expect it to report relatively soon. On the question of the company that she did not mention specifically but referred to as having difficulties with the Ministry of Justice, we are aware of those discussions. The company is a member of one of the consortia and it will be up to the consortium to decide whether it is appropriate, in the light of the outcome of the review, for that company to remain in it or not. It will be up to the consortium to replace it, if it wishes, with another.

UK Submarine Supply Chain

Debate between Alison Seabeck and Philip Dunne

Wednesday 10th July 2013 Westminster Hall

[The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)]

It is a great pleasure to serve under your chairmanship today, Mr Rosindell.

I congratulate the hon. Member for Barrow and Furness (John Woodcock) on securing this important debate. He is a doughty champion of the skills and activities that take place around the submarine programme in his constituency, and I am delighted to have this opportunity to respond to this debate and to put on record the Government’s appreciation of all the work that he has done in his constituency to support that programme.

The recent return of HMS Trenchant from a record-breaking 11-month patrol reminds us of the unwavering dedication of our submariners. For 267 days, she was east of Suez, where our submarines have had a presence since 2001 and where she took part in NATO’s counter-terrorism and counter-narcotics operations. Therefore I would like to start my contribution to this debate by thanking all of those who serve in our submarines and their families, who support their loved ones while they are away, often for months on end. Their commitment is sustained because they know the importance of the role they undertake in protecting our nation. Whether they serve on a fleet submarine contributing to current operations—as HMS Triumph did, by launching cruise missile strikes during the NATO-led operation in Libya—or they deliver our continuous at-sea deterrent by patrolling the oceans every minute of every day—in April, of course, the Prime Minister welcomed HMS Victorious back from the 100th patrol of the current deterrent fleet, which was a notable milestone—our submarines have served this country steadfastly for more than 100 years. But their role is only made possible thanks to thousands of people around the UK, who build, support and maintain the submarines. Although Barrow, as the centre of excellence for submarine production, has the most visible part to play in this programme, we do not rely on that Cumbrian town alone.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

Although it might be out of order, I would like to put on record the work done by the deep maintenance people in Babcock in Plymouth.

[Mr Dunne]

I am naturally grateful to the hon. Lady for reminding me. She pre-empts my own remarks. I am happy for her to endorse that, because it is not just Cumbria that contributes to this enormous effort.

From specialist diver support courtesy of Divex in Aberdeen, to marine valves courtesy of Hale Hamilton in Uxbridge, not so far away, few corners of the UK do not benefit either directly or indirectly from the £9.8 billion total cost of the Astute programme—not least the maintenance on the south coast that the hon. Lady mentioned.

The current submarine build programme alone sustains more than 10,000 jobs across the UK, as we have heard. There are some 5,000 high quality and skilled jobs at nine BAE Systems sites across the UK and thousands more are supported through 400 suppliers across the country. Thanks to our commitment to build seven Astute class submarines, as set out in the strategic defence and security review, these people are set to be busy for years to come.

These are the biggest and most advanced attack submarines ever ordered for the Royal Navy and the first two have bidden farewell to Barrow to join their cousins at their base port, Clyde naval base. But the pace does not slacken. I have seen for myself the hive of activity that is the Devonshire dock hall, as the third boat, Artful, is set to follow closely behind. Construction of boats four, five and six is also underway.

It is easy to focus only on BAES in Barrow, but we should not forget that the power plant at the heart of every nuclear submarine—in the past, now and in the future—has come from the Rolls-Royce facility at Raynesway in Derby. Rolls-Royce has been central to our nuclear-powered submarine fleet for more than 60 years, as the only company in the UK with design and production capability in nuclear submarine reactor systems. We recently announced an investment of more than £1 billion, to ensure we retain this unique national strategic capability for many years to come. This investment will regenerate the facility and sustain reactor core production at the site, securing some 300 of the most highly skilled manufacturing jobs in the process.

Likewise, the fleet could not continue to operate without the support provided at Devonport dockyard, as the hon. Lady highlighted. The refuelling, refits and overhauls that are essential to keeping our submarines at sea are all carried out here, as the centre of excellence for submarine maintenance.

It is not only England that plays its part in the submarine programme. Quite apart from the vital work done in support of our operational submarines by the 6,700 personnel supporting operations on the Clyde, firms across Scotland are winning contracts in the supply chain for build and maintenance of the fleet. For example, as hon. Members from Scotland present in the Chamber are no doubt aware, the sensor support optimisation contract I signed recently with Thales UK in May has secured 50 high tech jobs in Glasgow, along with a further 250 in Crawley, Manchester and Somerset.

Oral Answers to Questions

Debate between Alison Seabeck and Philip Dunne

Monday 15th April 2013 Commons Chamber

[Mr Dunne]

Our armed forces benefit directly from responsible defence exports. Not only do they help build bilateral relationships and defence co-operation with our key allies, but they raise capability, enhance the interoperability of allies and partner nations, and contribute to regional security around the globe. As far as the contribution to the UK economy is concerned, defence exports have a vital role to play in sustaining UK jobs, generating UK tax revenues and helping to ensure the long-term viability and cutting edge of our defence industrial base.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

I would like to associate the Opposition with the Minister’s condolences to the family and friends of Lance Corporal Webb for their loss.

The Minister will be aware that the Brazilian navy is looking to acquire at least one, possibly two, new aircraft carriers, so there will be significant potential for export opportunities. French companies are already on the case, supported by the French Government, looking to procure the design work. Given that we are building two of the world’s most advanced aircraft carriers, as a result of which we will have the skills and a dip in ship-building orders between the end of the carrier build and the start of the Type 26—which, incidentally, we are looking to sell to the Brazilians—what discussions has his Department, including the Under-Secretary of State for Defence, the hon. Member for South West Wiltshire (Dr Murrison), during his recent visit, had with the Brazilians specifically to promote British interests in the design and build of those carriers?

[Mr Dunne]

As the hon. Lady knows, Brazil and the UK entered into a maritime co-operation agreement as a result of the Prime Minister’s visit in recent months. As I said earlier, the Under-Secretary of State, my hon. Friend the Member for South West Wiltshire, visited Brazil only last week, when he discussed maritime co-operation, particularly in the offshore patrol vessel area. It is clear that the Brazilians wish to construct the aircraft carriers in their own shipyards, which means that there is no prospect of a direct export order for an entire ship; but as regards many of the systems, components and weapons systems, we will be seeking to provide opportunities for companies in this country supplying our aircraft carriers, which are currently under construction in Rosyth, to bid into the Brazilian and other nations’ programmes.

Oral Answers to Questions

Debate between Alison Seabeck and Philip Dunne

Monday 26th November 2012 Commons Chamber

[Mr Dunne]

The single most effective answer to the hon. Gentleman’s question is that this Government have removed the overspend in the defence equipment budget that we inherited from Labour. By narrowing the spend for the next 10 years into a £160 billion envelope, it is now clear that some 95% of that money is committed and the contractors know that the programmes will be delivered. That was not the case under the previous Government.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

The success of the future structure of Defence Equipment and Support lies at the heart of our ability to deliver Future Force 2020. The concerns raised by the industry about exactly how a Government-owned, contractor operated model would work therefore need to be taken seriously. The Minister’s predecessor, the hon. Member for Mid Worcestershire (Peter Luff), also highlighted the delay to the announcement on the equipment programme. My hon. Friend the Member for Hartlepool (Mr Wright) was absolutely right about the Department for Business, Innovation and Skills perspective—it is vital that the defence sector has certainty. Will the Minister undertake to come to the House at the earliest possible opportunity in the new year to set out the detail of the GOCO model and give us a definitive list of the projects that will be overseen by it?

Oral Answers to Questions

Debate between Alison Seabeck and Philip Dunne

Monday 22nd October 2012 Commons Chamber

[Alison Seabeck (Plymouth, Moor View) (Lab)]

I, too, welcome the new Front-Bench team. Two and half years into this Government, there is a hiatus in the decision making on Defence Equipment and Support. Ministers’ views seem to ebb and flow, and indecision is rampant. We need clarity, so when exactly will the Minister set out plans for a Government-owned contractor-operated body—a GoCo—or whatever other body he intends to bring forward?

[The Parliamentary Under-Secretary of State for Defence (Mr Philip Dunne)]

The hon. Lady talks about a hiatus. There were 13 years during which the previous Administration made no attempt to transform procurement within the Ministry of Defence, but this Government are determined to make procurement efficient and effective so that our armed forces can be given the right equipment at the right time and at the right cost. In July, my right hon. Friend the Secretary of State announced an investigation into the GoCo route, narrowing the options for Defence Equipment and Support. A value-for-money exercise is nearing completion, and we expect to make a decision before the end of the year on whether to move forward.