Defence Reform

Nick Smith Excerpts

Tuesday 26th June 2012 Commons Chamber

[Mr Jones]

I am glad the hon. Gentleman has asked about the £38 billion black hole, because it has become folklore, but the Government have not produced any evidence to justify that figure. Let me quote from an excellent Defence Committee report—which I am surprised he has not read as he is a former member of that Committee. It says:

“We note that the MOD now state the genuine size of the gap is substantially in excess of £38 billion. However, we also note the Secretary of State’s assertion that the ‘for the first time in a generation, the MOD will have brought its plans and budget broadly into balance, allowing it to plan with confidence for the delivery of the future equipment programme’. Without proper detailed figures neither statement can be verified.”

We should also consider the evidence given to the Committee by the then Secretary of State. He promised the Committee he would give details, but the final report states, at paragraph 205:

“We are surprised that this assessment has not yet begun and expect to receive a timetable for this exercise in response to this Report.”

The £38 billion figure has been bandied around ever since it was spun out of Conservative central office in the election campaign. The Government have been asked on numerous occasions to justify it, but they have not done so. They should.

[Nick Smith (Blaenau Gwent) (Lab)]

On the subject of wasting taxpayers’ money, the Government said last week that almost £39 million had been spent on preparing the carriers for “cats and traps” and the variant carrier aircraft, but the media says a quarter of a billion pounds have been spent. How much money does my hon. Friend think the Government have wasted?

[Mr Jones]

As with the £38 billion figure, the Government are very good at not explaining their mistakes. The original figure was, I think, £37 million. It then rose to £39 million, but the MOD subsequently briefed that it was £100 million. However, some informed sources say that it could be upwards of £250 million. The Government should state how much was spent in respect of that disastrous decision, which was taken at a time when the defence budget was experiencing savage cuts. They seem to have swept this matter aside, however, as if it is not important.