Ajax Noise and Vibration Review

Lord Macpherson of Earl's Court Excerpts

Thursday 16th December 2021 Lords Chamber

[Baroness Goldie (Con)]

I will respond to the noble Lord’s questions in reverse order. Yes, Ajax is an important capability for the future British Army. It will provide a mobile, resilient and crewed ISTAR capability that is optimised for “find, understand and exploit” effects. It will offer the newest and most technologically advanced capabilities, equipped with a best-in-class sensor suite and other cutting-edge technological aids. It is a very important piece of equipment and I think that is universally acknowledged.

The contract for this is a firm-price contract. We know what the price is. It is now down to the company, in collaboration with the MoD, to resolve the issues that have been causing the noise and vibration.

The noble Lord raised the question of the IPA report. The IPA released its public data in July 2021, showing that the Ajax programme had moved from amber to red status back in April 2021. The then senior responsible owner asked the IPA to review the programme over concerns that it was not progressing as it should be. However, as the health and safety report indicates, that is just one element of a very confused system of accountability, communication, acknowledgement of warnings and reaction to warnings. The noble Lord is right to express concern about that, and I will not diminish the significance of his question. If you look at the recommendations of the health and safety report, there is a lot of comfort to be derived from it, not only in relation to the Ajax programme but the relevance of some of these recommendations to the wider procurement programme. The noble Lord is correct that there are still questions to be answered. That will fall within the jurisdiction of the forthcoming follow-on review.

[Lord Macpherson of Earl’s Court (CB)]

My Lords, I welcome the Government’s response to this report, and the involvement in the other place of Jeremy Quin, who was a first-rate official in the Treasury at the time of the financial crisis. I also think that this country still needs to be able to deploy tanks in Europe, fulfilling its NATO responsibilities. My question is a simple one, derived from 30 years of working at the Treasury. The MoD has undertaken countless reports over many generations to deal with problems of procurement. I would welcome an explanation from the Minister of why this time it will be different.

[Baroness Goldie (Con)]

I thank the noble Lord for his kind remarks about my honourable friend in the other place. Everyone is clear that Jeremy Quin has been like a terrier trying to get to the root of what has been going on here; hence we have much more information available to us today. This programme in particular has indicated and illustrated that there is no denying that there are weaknesses in the system. The defence director of health, safety, and environmental protection is owed a huge debt. He has analytically looked at the problems and come forward with rock-solid recommendations based on evidence. I can assure the noble Lord that it is the intention of the MoD to accept.

As the noble Lord is possibly aware, there are three recommendations that pose some practical problems. In principle, we understand what they are trying to do, and we are sympathetic to them, but we need to look at them more closely to see how they will work in practice. However, I am satisfied that these recommendations are very much a way forward. He will be aware that reforms have been adopted in the MoD in relation to contracts, procurement, and acquisitions. They have been working well. This programme started back in 2010, so it has been a long-standing development. The follow-on review will begin to answer some of the question that I know are uppermost in his mind, but I assure him that this is not a one-off. In terms of solutions, this will be looked at as a signpost to how we should act in the MoD and be regarded as a template for future procurements.