Defence Budget and Transformation

Lord Lancaster of Kimbolton Excerpts

Monday 14th May 2012 Commons Chamber

[Mr Hammond]

As part of the coalition agreement, we made a commitment to such a review, in parallel with committing to the long-lead items on Trident replacement, so it would not slow down the programme—to answer the question of the right hon. Member for East Renfrewshire (Mr Murphy), the shadow Secretary of State. That review of possible alternatives to a submarine-based nuclear deterrent will be completed by the end of this year and submitted to the Prime Minister and Deputy Prime Minister, and a decision will be made then.

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

Urgent operational requirements have become a permanent fixture in the procurement process. However, while they have delivered excellent kit to our troops on the front line, they are widely regarded as offering poor value for money in the medium term and in respect of the through-life process. Can the Secretary of State assure me that while we have an effective UOR process, it will not be used as a substitute for planned procurement?

[Mr Hammond]

Yes, I can reassure my hon. Friend of that. There is a perception that UORs have effectively delivered equipment far more quickly, and often far closer to the original estimated budget, than conventional procurement. We have got to see what we can learn from those processes that will translate across into the main procurement programme.