Ajax Vehicles

Lord Alton of Liverpool Excerpts

Monday 12th December 2022 Lords Chamber

[Baroness Goldie (Con)]

I very often find cause to disagree with the noble Lord, but, on this occasion, I accept his proposition that the conflict in Ukraine has informed us. It is the most recent example of global conflict that we have encountered in modern times, and it has been extremely educational and informative for the MoD. As to how that reaches out into procurement, it has highlighted where issues can arise in relation to procurement, particularly at short notice and in securing procurement at pace, and we are learning these lessons. But, as I indicated to the noble Lord, Lord Wallace of Saltaire, a lot of how we procure has to do with a civilised and intelligent relationship between the MoD and industry. I am pleased to say we have that, and we have had a great deal of co-operation from industry.

[Lord Alton of Liverpool (CB)]

My Lords, I welcome what the noble Baroness has said about procurement—and of course the Procurement Bill now goes to the other place for consideration there in January—but will we learn significant lessons from what has happened with Ajax? Does she recall that, in June of this year, the Public Accounts Committee of the House of Commons said:

“The Department has once again made fundamental mistakes in its planning and management of a major equipment programme.”


The chair of the committee, Meg Hillier, went on to say that this has been deeply flawed from the start. Will the Minister at least undertake, as we proceed, to give the House updates on the progress of Ajax so that we know when it will be put into use and whether the safety issues that my noble and gallant friend raised earlier have been overcome?

[Baroness Goldie (Con)]

I am pretty sure that, in the other place and here, the Government’s feet will be held to the fire. We expect Ministers to come to the Dispatch Box and explain what the progress is and where we are in the process. In relation to procurement as a whole, there have been some very good examples of procurement. The MoD has made big changes on the back of NAO reports, many of which were critical, but we absolutely accepted some of the recommendations. We have made major changes: for example, we have implemented steps to more accurately estimate project costs, including improving risk forecasts through the use of reference-class forecasts, risk-costing pilots and the analysis of systematic strategical operational problems. We have also made reforms to how we deal with the senior responsible owner, so that there is much more continuity in the contracts. A lot of big changes have happened. I point to two recent procurements, the Type 31 and the Poseidon aircraft, as very good examples of really successful, positive procurement.