Oral Answers to Questions

Debate between Dominic Raab and Peter Luff

Monday 31st January 2011 Commons Chamber

[Mr Dominic Raab (Esher and Walton) (Con)]

9. What steps he is taking to ensure value for money in his Department’s procurement.

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

The Government are determined to drive out the mismanagement of the equipment programme experienced under the last Administration. Developing a balanced, affordable programme must be our first priority. The strategic defence and security review and the current planning round process are major steps on the road to achieving that, but ongoing acquisition reforms, the work of the defence reform unit, and the appointment of Bernard Gray as Chief of Defence Matériel are also signals of our determination to address the issue successfully.

[Mr Raab]

I thank the Minister for his answer. I also welcome Lord Currie’s review of single-source pricing regulations. The major projects reports produced by the National Audit Office in 2009 and 2010 issued scathing assessments of the last Government’s record of purchasing defence equipment. How will the Currie review ensure better value for money for taxpayers?

[Peter Luff]

My hon. Friend is right to highlight the importance of the review, which I announced to the House last week. Given that some 40% of work by value is secured through this route, it is crucial to the taxpayer that we secure value for money from procurements. It is important for industry to be given incentives to reduce costs, and this will be good news for small and medium-sized enterprises, many of which find the present procedures for procuring work exceptionally onerous. Moreover, by making industry more competitive on world markets we will increase our export potential. It is a win-win situation.