Ministry of Defence
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MoD announces outcome of its equipment examination
MOD announced today the outcome of its equipment examination, reprioritising programmes to better support current operations.
Support to operations is a key priority and we can today announce a significant increase in helicopter capacity in Afghanistan. Measures include a £70 million investment to upgrade 12 Lynx Mark 9 helicopters with new engines, which will free up other aircraft for other tasks.
There are also plans to redeploy Merlin helicopters from Iraq to Afghanistan next year, making significantly more aircraft and flying hours available to commanders.
On top of that, the new Future Lynx helicopters will provide even greater operational capability when they come into service in 2014.
Secretary of State for Defence John Hutton also announced there would be a review to examine progress with implementing reforms through the MOD's Acquisition Change Programme and make any further recommendations to secure better value for money in the delivery of major acquisition programmes. The review will be led by the businessman and journalist Bernard Gray.
Mr Hutton said:
"Putting our forces on the frontline at the heart of everything we do is my priority. Crucial to that, is making sure that we get the best kit to the people who need it, when they need it - both in the short and long term. That is why we recently announced £700M for nearly 700 more protected vehicles for Afghanistan. Investing £70M to get more helicopters out to Afghanistan is similarly about prioritising the right equipment for troops on operations.
"And that is why for the longer term we are investing in the new aircraft carriers, Future Lynx helicopters, and according the highest priority to delivering the Warrior Capability Sustainment Programme and the FRES Scout Vehicle - investment totalling some £6.5Bn.
"Nevertheless, tough decisions needed to be made and with future value for money in mind, I have asked Bernard Gray to conduct a review into our processes for procuring and delivering major equipment programmes to make sure we deliver projects on time and on budget."
Getting the right mix of vehicles to our commanders has been at the top of our equipment agenda to date. The recent announcement of £700M for nearly 700 more protected patrol vehicles for Afghanistan is evidence of that commitment. Based on that considerable investment the equipment examination has concluded the highest priority for current operations is the Warrior Capability Sustainment Programme and the FRES Scout vehicle.
In addition, the new Aircraft Carriers will be brought more closely into line with the introduction of the Joint Combat Aircraft, which will result in a change to the delivery schedule. Construction on the ships is already under way and will continue with minimal implications to jobs and industry. The programme will still provide stability for the core shipyard workforce, including 10,000 UK jobs.
We remain committed to doing more for our people, here and on the front line - improving their support and welfare, pay, medical care, rehabilitation services and accommodation.
NOTES TO EDITORS:
1. The WMS on the outcome of the Equipment
Examination was laid in the house at 1200, 11 December 2008. The
text is available from the MOD Press Office.
2. We have approved £4Bn to spend on Urgent Operational Requirement programmes for Iraq and Afghanistan, and the delivery of some 240 such programmes in the last financial year. £5.7 billion worth of new equipment was delivered to the Armed Forces in 2007/8.
3. The review to examine progress with implementing reforms through the MOD's Acquisition Change Programme and to make any further recommendations to secure better value for money in the delivery of major acquisition programmes will be undertaken by Bernard Gray, a former Special Adviser to George Robertson. He has also been Defence Correspondent at the Financial Times and has held a number of positions, including Strategy Director, Chief Executive and Executive Chairman, at a number of successful businesses.
4. £700M for 700 new vehicles was announced 29 October 2008 http://www.mod.uk/DefenceInternet/DefenceNews/EquipmentAndLogistics/NewArmouredVehiclesForAfghanistan.htm
5. The Comprehensive Spending Review settlement in July 2007 gave the MoD an average annual increase of 1.5% until 2010/11 (an additional £7.7 billion). The Defence Budget will be 10% higher in real terms than in 1997, marking the longest period of sustained growth since the 1980s.
6. The expenditure for operations in Iraq and Afghanistan is new money over and above the core Defence budget to ensure our Forces are properly trained, equipped and supported for operations. That includes significant levels of spending on new equipment and upgrades through the Urgent Operational Requirements (UOR) process. Since 2001 £9.5Bn has been provided to fund operations and this will have risen to approximately £13.2 billion by the end of the financial year.
