Oral Answers to Questions

Claire Perry Excerpts

Monday 13th December 2010 Commons Chamber

[Dr Fox]

Given the financial position the Government inherited, it was necessary to make major reductions in costs, not least in personnel. How those costs ultimately are manifested is dependent upon whether we require compulsory redundancies, how many are voluntary redundancies and how many are early retirements. These matters are subject to discussions with the civil service at the current time.

[Claire Perry (Devizes) (Con)]

11. What arrangements are in place to monitor the progress of his Department’s major equipment procurement programmes.

[Mark Lancaster (Milton Keynes North) (Con)]

14. What arrangements are in place to monitor the progress of his Department’s major equipment procurement programmes.

[The Parliamentary Under-Secretary of State for Defence (Peter Luff)]

I receive monthly reports and quarterly detailed project health checks on the Ministry of Defence’s largest projects. Last year, discounting deliberate policy decisions made by the previous Government, the MOD met all its targets to deliver its major projects to cost, time and performance. This year looks equally encouraging. The top 30 major projects are also reviewed annually by the National Audit Office and in this year’s report the Comptroller and Auditor General said:

“In-year performance on the majority of large defence projects which we examined has been encouraging".

But we should not wait for the NAO to tell us how we are doing at the end of the year. That is why I can announce to the House today that the Secretary of State and I are forming a major projects performance board that will review our most significant projects regularly.

[Claire Perry]

I thank the Minister for that reply. Does he agree that in a long line of procurement failures from the previous Government, the £38 billion overspend in the defence budget takes the biscuit? Will he reassure the House on what steps will be taken so that that level of commercial failure will be, like the idea of a Labour Government, a thing of the past? [Interruption.]

[Peter Luff]

I hear howls of protest from those on the Opposition Front Bench, but over the weekend I heard the shadow Secretary of State fessing up to major failures in procurement. I strongly agree with my hon. Friend.

I am happy to tell you, Mr Speaker, that I cannot comply with your request for short answers and do justice to my hon. Friend’s question because we have a range of measures in place to achieve precisely that outcome, including stronger controls over the entry for new projects in the equipment programme; a formal project start-up process that considers requirement risk, technical viability risk, affordability and deliverability; improving key skills; working closely with the NAO; and reaffirming our commitment to regular defence reviews. All that will achieve exactly the outcome that she so rightly desires.