Ajax Armoured Vehicle Procurement Debate

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Department: Ministry of Defence

Ajax Armoured Vehicle Procurement

Nigel Evans Excerpts
Thursday 9th September 2021

(2 years, 9 months ago)

Commons Chamber
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Jeremy Quin Portrait Jeremy Quin
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I am not. I am writing to the Defence Committee, of which my hon. Friend is a very important member, on exactly that issue, as well as other issues that the Committee raised after my appearance before it. I have seen lots of rumours about the costs of rounds, many of which are way out, but I am constrained. As the House will appreciate, there is nothing more commercially sensitive for a supplier than the exact price of a particular product that it sells to one of its major customers.

If I may, I will explain the difference between 30 mm and 40 mm. An analysis was conducted by the Defence Science and Technology Laboratory. As the Committee and the House are well aware, there is extra weight on armoured fighting vehicles to enhance the survivability of the crew within them. Given those trends, DSTL’s view was that we needed a heavier weight of ammunition to have effect and to have lethality. That was why we went for the 40 mm rather than the 30 mm option for Ajax, in combination with the entire system, including the stabilisation. The extra punch from the 40 mm, with the system that supports it, means that we would expect to get lethality from one shot. That is incredibly important to our service personnel. It means that they are not dwelling to get an accurate shot and they are not, unlike with the 30 mm, required to send a burst with a shotgun effect. They have a single precision strike. When we look for value for money, the ability to protect our crews and to provide lethality and to ensure that we get that one strike are what is important.

As a result, when we compare the costs of a round of 40 mm with a round of 30 mm, we are comparing a 30 mm burst of three rounds with, in normal circumstances, one shot from the 40 mm. That is the context of value for money, which I hope will persuade my hon. Friend that it is not just a straightforward round-for-round shell comparison. It does not give the full answer.

Nigel Evans Portrait Mr Deputy Speaker (Mr Nigel Evans)
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Can I just remind the Minister to face forward so that he is facing the microphone? I understand the temptation to look at the person who has asked the question, but it is so that things can be properly recorded. Can we have short questions and shorter answers, please?

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Mark Francois Portrait Mr Mark Francois (Rayleigh and Wickford) (Con)
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This £4 billion debacle is an example of exactly why the MOD’s procurement process is completely broken. The IPA analysis has already been referred to. Each year, it goes through the top 36 MOD procurement programmes and grades them with a traffic light. Ajax is red, unlikely ever to be achieved. How many of the 36 were green and successfully on track? None. Zero, zilch, nothing. Not one major MOD procurement programme is successfully on track. This is over £100 billion of British taxpayers’ money. The procurement system at Abbey Wood is a shambles, and presiding over this steaming heap of institutional incompetence is the Minister. You are losing 36-0 on behalf of the British taxpayer. [Interruption.] It might be nice if you were not laughing about it. This is massive amounts of taxpayers’ money. You are 36-0 down, you have got a broken system and you are in total denial. What are you doing about it?

Nigel Evans Portrait Mr Deputy Speaker (Mr Nigel Evans)
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Before I call the Minister, please remember to not use the term “you”. I ask for shorter questions, please.

Jeremy Quin Portrait Jeremy Quin
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Thank you, Mr Deputy Speaker. I was smiling merely at the sporting analogy, which I do not think is appropriate. I have already mentioned the MPA’s valuable role, and I am grateful for the work that the IPA is doing in assisting us by looking at the project and how its management can be improved. It has a series of traffic light systems, and my right hon. Friend is right that two of our projects are rated red. There is a whole series of colours; from memory, three projects are green-amber. None is green, which would signal that there are no problems. However, in fairness, if we look at every major country acquiring major defence assets, we see that these are complex and difficult programmes. The importance of the MPA is that it draws attention to problems and to the issues that need to be undertaken and achieved to hit programme targets. A red rating does not mean that it is wholly unachievable; it does mean that there are very serious issues to be addressed, as is patently the case with Ajax, and as I would be the very first to admit that.

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Jeremy Quin Portrait Jeremy Quin
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That is a good question from my hon. Friend. I can absolutely reassure her that the safety panel has been convened and has been working through the summer to find a way to allow limited use—and it is only limited use—to undertake the trials at Millbrook. Having done a lot of work on it, with independent advisers as well as the duty holders from the MOD and others, it believes it has found a way forward that is safe and allows the trials to take place. In due course, when we learn the lessons from those trials, they will enable us to have a safe manner of working in the future.

However, the nub of this, and it is a good point on which to end, is that we need a fundamental resolution of these issues. We want Ajax to come into service, and we want it to work. We want to work with General Dynamics to achieve resolution. We need this kit—it is useful, valuable equipment that the British Army is looking forward to having—but we will only have IOC when we have a path to long-term resolution on noise and vibration, and we are committed to working towards that.

Nigel Evans Portrait Mr Deputy Speaker (Mr Nigel Evans)
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I thank the Minister for his statement and for responding to questions for the last 50 minutes.