MINISTRY OF DEFENCE
News Release (210/2007) issued by The Government News Network on 11
September 2007
Defence Minister
Lord Drayson today welcomed a report by a committee of MPs into
improvements MoD is making to the way it buys new equipment for
the Armed Forces - but took issue with some comments in the
committee's press notice regarding cost allocation.
Lord Drayson, Minister for Defence Equipment and Support, was
responding to a report by the House of Commons Public Accounts
Committee on the National Audit Office Major Projects Report 2006.
He said:
"I welcome today's report and we will study the
conclusions and recommendations carefully and respond fully to
Parliament in due course. My initial view is that the report takes
a constructive view of the work we're doing to improve the
way we buy weapons and equipment needed by the Armed Forces.
"It acknowledges our increased emphasis on managing
equipment right through its life-cycle, and the formation of
Defence Equipment and Support as part of this. It also
acknowledges an improving picture on delivery on in-service dates,
better management of our key people and of our relationship with industry.
"To ensure project teams' performance will be assessed
on costs over which they have direct control, non-programme costs
have been allocated to other more appropriate areas. We have been
clear that we do not claim these as savings to the Department.
This measure will help us take a more effective corporate approach
to cost management. This was properly costed, and as the PAC
report acknowledges this was a reasonable measure.
"MoD - as the report makes clear - only claimed real savings
on project costs."
Notes to Editors
1. The Public Accounts Committee Ministry of Defence Major
Projects Report 2006, the 46th Report of session 2006-2007, was
published on 11 September 2007.
2. The Committee took evidence from then Chief of Defence
Procurement Sir Peter Spencer and from Deputy Chief of the Defence
Staff (Equipment Capability) Lt Gen Andrew Figgures on 31 January 2007.
3. The Ministry of Defence will respond fully to Parliament on
the Report's recommendations and conclusions in due course.