IT Systems (Army Recruitment)

John Baron Excerpts

Tuesday 14th January 2014 Commons Chamber

[Mr Hammond]

That is precisely what I am doing. Perhaps the hon. Gentleman should remind himself that the initial gate business case for this project to outsource recruiting was approved in July 2008, so I hope we are not in dispute over the principle.

The hon. Gentleman mentioned an IT debacle. Yes, there are big problems with the IT and I have told the House on repeated occasions that we have IT challenges. There are problems with IT in Government. The hon. Gentleman speaks as if he was not a member of the Government who spent £13 billion on a health computer system that we had to write off and £400 million on a work and pensions computer system that had to be written off.

What we are doing now is gripping this problem and addressing it. That means, in the short term, workarounds and putting additional manpower into the system to provide additional support. Short-term solutions include the new front-end web application, which will go live over the next two weeks, to improve the experience of applicants accessing the platform.

The hon. Gentleman asked about the costs and I can give him some figures. The Capita solution will cost about £47.7 million to produce a full new IT platform. The alternative Atlas IT platform proposal would have cost about £43 million, so the additional cost of the Capita solution is about £4.5 million. He asked about the £15.5 million of sunk cost. Our initial estimate is that about £6.7 million of that represents costs that will have to be written off, but that will be subject to a proper audit process.

The hon. Gentleman asked about the additional cost—the running cost, as it were—of the interim solution that we have put in place. It comprises additional payments that have to be made and the cost of the additional manpower that has been delivered into the system. That is currently running at about £1 million per month. The solution that we have adopted and that we have now approved—going ahead with Capita platform and placing the integration risk back on Capita—is judged to be the quickest way of eliminating that ongoing expenditure and the best way of delivering a permanent solution for the benefit of the Army and the taxpayer.

[Mr John Baron (Basildon and Billericay) (Con)]

I again suggest to the Secretary of State that plans to replace 20,000 regulars with 30,000 reservists will cost much more than the Government envisage, leading to false economies and a waste of taxpayers’ money. Given the tens of millions of pounds already wasted on this IT shambles, will he outline how much more it will cost to put it right? Does this not reinforce the point that the Government should now halt and stop the disbandment of regular units until we are sure that the plan to replace them with reservists is both cost-effective and feasible?

[Mr Hammond]

Let me deal with the cost point first. The overall programme, the Capita recruiting partnership project, has a budget of about £1.3 billion over a 10-year period. As I have just outlined, the additional cost of the IT platform is estimated to be £47.7 million.

Repeating the question that he has asked many times, my hon. Friend asked whether it is appropriate to replace 20,000 regular soldiers with 30,000 reservists. That is not what we are doing; we are changing the shape of the British Army and we are changing the role of reservists, whom we intend to fill specialist roles and provide resilience in the case of a prolonged future deployment. He makes a regular versus reserve point, but I should be clear with him that the recruiting platform is used for regular and reserve recruitment: it affects both regulars and reservists.