Better Defence Acquisition

Martin Horwood Excerpts

Monday 10th June 2013 Commons Chamber

[Mr Hammond]

As I have already said, Ministers will retain the ability to provide strategic direction. If the hon. Gentleman does not mind, I will take no lectures from the Opposition on shifting projects to the right at huge cost, because the previous Government shifted the carrier project two years to the right at a cost of £1.6 billion. What was actually done in 2010, in relation to the submarine enterprise, was a reconfiguration of the programme between the Astute class submarines and work on the Vanguard class replacement submarines, which resulted in a delay to the introduction into service of the Vanguard class, but within the overall constraint that we have in this country of needing to sustain a submarine yard at Barrow, and the minimum level at which we can sustain a submarine yard is building one submarine at a time. However we configure them—Vanguard class first or Astute class first—we have to provide that work flow if we are to keep that sovereign capability. That is the kind of single-source procurement that we are targeting in the announcement I made today on the single-source procurement rules.

[Martin Horwood (Cheltenham) (LD)]

I commend the Secretary of State for getting to grips with defence procurement, which is long overdue, but does he recognise that there is nervousness in some quarters about the complexity of the emerging process, which will involve the MOD, the armed forces, NATO, the private supplier, the GoCo and the independent cost advisory service? Can he give the House any reassurance that new inefficiencies will not creep into the system as a result of that complexity?

[Mr Hammond]

I will be very frank with the hon. Gentleman: one of the things I have learnt over the past three years is that new inefficiencies creep in all the time if one is not continually vigilant. That, incidentally, is why, however much one thinks one has squeezed out all the inefficiencies, when one goes back around the loop and looks again one finds more that were not noticed the last time or that have crept in since. He is absolutely right to say that it is a complex enterprise, but within the overall portfolio of defence transformation—we are carrying out many hugely complex projects simultaneously —it is just one of many, and I am confident that we can manage it.