Defence Fire and Rescue Project: Capita
Debate between Earl of Courtown and Lord Tunnicliffe
Lord Tunnicliffe (Lab)
My Lords, I thank the Minister for repeating the Answer. I have to admit to being little short of amazed by this award. Yesterday’s Daily Telegraph said:
“An assessment by financial analytics experts from Company Watch, which is used by the MOD, gave Capita a risk score of 10 out of 10. The higher the figure, the greater the perceived level of financial distress. Published on June 6, the report also measured Capita on a separate metric, a so-called health score, which plunged to just three out of 100”.
All in defence know the appalling mess Capita made of the Armed Forces recruitment programme, which has been saved only by the Armed Forces duplicating the work Capita should have done. Surely Her Majesty’s Government—of the party that is supposed to understand business—understand that the Capita business model is bid low, exploit the contract to its limit and cut costs remorselessly. How will Her Majesty’s Government ensure that the inevitable cost-cutting will not result in the death of members of the Armed Forces?
The Earl of Courtown
My Lords, I thank the noble Lord for his questions. I obviously do not agree with him. I think this is basically a good thing for the Ministry of Defence, its budget and the taxpayer. The noble Lord mentioned a document that has been doing the rounds of the newspapers. The document in question was produced by the strategic supplier management team. The ratings on the SIB are taken from the Company Watch report and are provided for information purposes only. The SIB is not used in the formal assessment of the company’s financial health and is purely for background.
All competitive proposals were thoroughly analysed by subject-matter experts from within the defence and wider fire and rescue sectors. The recommendations were also subject to detailed scrutiny by the Ministry of Defence, Her Majesty’s Treasury and the Cabinet Office. The scrutiny extended for more than six weeks longer than it needed, to ensure that due diligence had been carried out.
Armed Forces: Cuts
Debate between Earl of Courtown and Lord Tunnicliffe
The Earl of Courtown
I thank the noble and gallant Lord for his question. He is quite right that concerns were raised in the newspapers by General Hodges. The fact is that all these budgets are under some pressure or other. Any speculation about the measures the Government will take through the NSCR is exactly that—speculation. No decisions have been taken. Rumours in the press have been misleading and deeply unhelpful.
Lord Tunnicliffe (Lab)
My Lords, we are to have a national security and capability review—that is code for “more defence cuts”. We have a statement from Ben Hodges, commander of the US Army in Europe, who said that if the UK,
“can’t maintain and sustain the level of commitments it’s fulfilling right now, then I think it risks kind of going into a different sort of category”—
that is code for “we will become second-class allies”. How does the Minister reconcile this with the Statement by the then Defence Secretary, Philip Hammond, in 2013, when he said—nay, boasted:
“The savings that I have agreed will have no impact on military manpower or equipment”?
He went on to say:
“The ambitious and far-reaching reforms we began in 2010 have eliminated the £38 billion black hole and balanced the defence budget for the first time in a generation. We are determined to ensure that the Armed Forces of the future have the resources they need to deliver our nation’s security”.
There has been an impact on manpower and equipment. We have failed to balance the defence budget and Ben Hodges clearly believes that in the future we will not have the resources to deliver our nation’s security.
The Earl of Courtown
My Lords, I repeat that our Armed Forces are fulfilling their commitments across the globe and this Government will ensure that they continue to do so. I remind the House—as many Ministers have in the past—that our investment of 2% of UK GDP in defence gives us a leadership role in operations and exercises. To name just some of the activities currently under way, we are proud of our leading role in NATO’s Enhanced Forward Presence, NATO air policing and NATO standing naval forces. We continue to play a pivotal role in coalition operations against Daesh.