Defence Acquisition Reform

Nigel Evans Excerpts

Wednesday 28th February 2024 Commons Chamber

[James Cartlidge]

I am grateful to the right hon. Lady for her comments. Some issues are above party politics and playing politics, especially when we look at the threat we face and our need for more competitive military procurement, but she is aware, for all she said, that we have seen a one-year reduction in procurement time from December 2020 to December 2022. There have been extraordinary efforts in DE&S in particular to get equipment into Ukraine. We should never understate the way we have gifted our own stocks and scoured the world to find an enormous amount of munitions, not least 300,000 artillery shells. That is very positive procurement and in the hour of need as far as Ukraine is concerned.

The right hon. Lady asked a perfectly fair question. Obviously, we cannot say how any of the measures would have worked in the past, but let me take one of her hypothetical questions: how would Ajax—the key example, given the Sheldon report—have been helped? I can only speculate, but the emphasis on exportability, for example, will be robust and from the start of programmes. That applies more pressure where requirements are overly exquisite, because it will be balanced out by international demand. The reason we want to promote exportability is ultimately to strengthen the resilience of our industrial base. Our market is not big enough. If we have that check in place, it will reduce the tendency towards the exquisite.

Secondly, we will have a new set-up in terms of the expert advice we receive at the beginning—the second opinion, as I call it—in particular from scientists at the Defence Science and Technology Laboratory, export experts at the Department for Business and Trade, and our own civil servants on finance and so on. We will have very clear advice, which will look at the technical issues around potential platforms. At the moment, to be frank—I appreciate this is only possible to say from internal knowledge—we do not get that level of balance and challenge against the primary requirement coming forward from the frontline command.

The right hon. Lady asked how the new model would apply to the new medium helicopter and whether it would add time at the beginning. I cannot comment on the specifics of NMH, because it is commercially sensitive, but talking in generality, I would trade more time at the beginning, thrashing out the big issues, working out and locking down the policy on, for example, industrial production, so that those issues do not find themselves being reopened later. Of course, I am talking generically and not about specific programmes, but if such things are not locked down, there is a real habit of them coming back later and creating the biggest delay, putting the programme in question. So, that is crucial.

Finally, the right hon. Lady asks about the affordability issue in the equipment plan, which I think is the most important part. I spoke about the munitions strategy. We could simply ask the single services to come forward with their priorities for new munitions, but the best way is to look robustly at the threat we face. That is the most important issue: to work back from that and prioritise at a pan-defence level the most urgent requirements for new munitions. I think many people would think that that is common sense, but it has not necessarily been how the system has worked.

Let me finish by saying that perhaps the most positive experience I have had as the Minister for Defence Procurement was visiting one of our small and medium-sized enterprises, which was bringing forward a drone we were using in Ukraine. It was receiving data from the frontline and, based on that data, spirally developing the platform within days to go back into service so it was competitive against the threat it was facing. I want to create a constant loop between industry and the MOD, where we are sharing data and frontline knowledge, so that we have a far more rapid period of technological innovation. The equipment plan, which was very static over 10 years, will look like an old fashioned way of doing things. The priority is to get technology into the hands of the military. That will increasingly be on the software basis and that is how we strengthen our armed forces overall.

[Mr Deputy Speaker (Mr Nigel Evans)]

I call the Chair of the Defence Committee.

[Sir Jeremy Quin (Horsham) (Con)]

I congratulate the Minister on the statement, which looks to the future. There is a lot in it to commend. In particular, it is absolutely right to focus on data collection and making certain we are AI-ready. I am delighted about DSTL’s enhanced role, which was one of the learnings from Ajax, and I am pleased that all the recommendations of the Sheldon report are being taken forward.

On closer industrial working at secret and exportability, that is entirely consistent with the defence security industrial strategy. That is absolutely welcome and a very positive sign. Above all, I am delighted with the emphasis on spiral development and the new concept of the MDC. We all know the benefits of that: getting something that is right and appropriate on to the frontline where it can be spirally developed is good for industry—it sees the drumbeat of orders—and good for the services, which do not need to think they are going to get everything in one bite. It is all positive.

The only thing I would ask is that we should not forget the basics. The Minister referred to this in his statement, but SROs who have enough bandwidth, support, and time and length on a project are absolutely critical, as is a culture in which they can experiment, and if something ain’t working, they should be able to pull stumps. That should not be a source of shame, but an inevitable consequence of being forward-leaning, modern and experimental. They should say, “This isn’t working; reinvest the cash elsewhere.” That should be commended when SROs come to the Minister with that kind of circumstance.

--- Later in debate ---

[Several hon. Members rose—]

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. May I remind Members to focus on the question to which they want the Minister to respond?