MINISTRY OF DEFENCE
News Release (285/2007) issued by The Government News Network on 30
November 2007
In its annual
review of major defence equipment projects, published today, the
National Audit Office has recognised the actions taken by the MoD
to limit in-year cost increases and minimise delays.
In response to the report Baroness Taylor, Minister for Defence
Equipment and Support said:
"The size and complexity of these equipment programmes with
their huge challenges in delivery and technology must not be
underestimated. The National Audit Office recognises that we are
moving in the right direction to keep costs down and minimise
delays. But there is more to be done. We are putting the changes
in place to improve the delivery of our equipment programmes to
our Armed Forces.
"Today's report covers progress on our top 20 projects
- but we are also managing some 350 other projects at various
stages of concept, assessment, development and manufacture valued
at more than £65 Billion. Our teams are also engaged, with
industry, on the crucially important task of delivering key urgent
operational requirements to Afghanistan and Iraq to counter
emerging threats. Some 160 separate Urgent Operational
Requirements have been successfully delivered since April 2006."
Thirteen of the top 20 projects have forecast a fall in costs and
ten report either no delay or a cut in the forecast in service
date. Much of the cost growth forecast in MPR2007 relates to the
Type 45 Destroyer and Astute attack submarine programmes. The
report acknowledges the work done by the MoD to place these
projects on a better footing in the long term.
The MoD continues to take hard decisions about trading cost, time
and performance to keep within the limits of budgets and minimise
delays, in line with the Committee of Public Accounts recommendations.
Notes to Editors
1. The National Audit Office Major Projects Report 2007 is
published today by the National Audit Office.