Step Forward (again) Lord Levene

The Defence Reform Unit is being set up under Lord Levene to oversee the changes outlined in the speech below.

The DRU will work with the Permanent Secretary, Chief of the Defence Staff and the Service Chiefs to find ways of devolving greater responsibility for the running of the Services themselves.

Lord Levene will therefore have tremendous power and this will no doubt ruffle some feathers, which is always a good thing but what are his qualifications for the job of reforming the basket case that is the MoD that can quite happily spend money on dubious nonsense like diversity conferences, can’t even run its accounts without having them qualified by the NAO, repeatedly wastes money on farcical procurement programmes and until very recently could not even properly clothe its own soldiers.

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Earth Calling MoD, Earth Calling MoD

Not a day goes by without the latest rumour of cuts or the need to respond to the dire state the MoD’s finances are in.

We discuss merging services, cutting programmes, destroying capability and withdrawing from operations as a means of cutting cost.

Yet despite this intense atmosphere it seems the people at the MoD public relations/news management/web team can still find enough time to tell us all something vitally important to the coming SDSR or operation in Afghanistan, the rising up the Pink List for example!

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Financially Incompetent

Is there really anything to add

Oh, yes, of course there is

MoD Gifts £26million to the Northern Ireland Assembly (H/T UK Defence Forum)

And there’s more where that came from

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The Ministry of If’s, But’s and Maybe’s

Whilst we all know that election promises aren’t really worth anything it is going to be interesting to see how things pan out in the coming months and compare those promises made in opposition with the realities of government.

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A tale of two headlines, and other stuff

I will start this post with a few select quotations from the Secretary of State for Defence, Dr Liam Fox MP

Whilst in Afghanistan recently

“I will give you my promise that we will do everything we can to ensure that, whatever you are asked to do, you are properly, fully equipped to do so, to maximise your chance of success and minimise the risk to you.”

His welcome speech on the first day of his new job

“Resources will be tight for the country as a whole and Defence is no exception. We must make sure that we make every penny spent on Defence count. This means we will have to look again at all that we currently do, including the organisation and structure of the Department, each of the Services and the support area to ensure that we can undertake confidently and effectively the key tasks for which MOD is responsible.”

Before getting his new office

“Now we have 99,000 in the army and 85,000 civilians in the MoD. Some things will have to change and believe me they will.”

In a speech in June this year

“We intend to create a more efficient and leaner centre where everyone knows what they are responsible for and who they are accountable to – with the deadlines and budgetary disciplines taken for granted elsewhere”

So one might think the entire MoD was on a war footing, focussing 110% of their energy on the business of achieving some kind of desirable outcome in Afghanistan, the Indian Ocean or any of the other operations we are involved in?

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A Poison Chalice

So, Sir Jock is on his way out which leaves the hot seat of Chief of the Defence Staff vacant.

So what will be festering in the in tray?

A Budget Cut/Strategic Defence Review to manage

How to get out of Afghanistan with any shred of credibility

An equipment programme that is more or less out of control (see above)

They will be remembered for an ignominious withdrawal from Afghanistan, shutting down a range of sacred cows/equipment programmes, disbanding historic regiments and squadrons, decommissioning naval vessels and basically, managing yet more decline.

Which begs the question, why would anyone want the job?

Value for Money?

The Cabinet Office has now released the details of the highest earning civil servants, those with a salary of more than £150,000

More MoD staff appear in this this list than any other department, accounting for 16% of the total number and £14% of the £29.3 million annual salary and allowance bill. Defence is about 6.5% of total government spending.

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Lord Astor Joins the Defence Team

In addition to Peter Luff MP, Lord Astor of Hever has joined the defence team.

A former Guardsman with experience in Northern Ireland, Hong Kong and Malaysia he should be another strong appointee with plenty of experience.

He was previously an opposition spokesman on defence and is President of the Motorsport Industry Association.

The UK has a vibrant and innovative motorsport industry and there is absolutely no doubt, closer links between it and the MoD should be beneficial, technology transfers have created many advances for military vehicles.

Lets hope those industry connections don’t get in the way, like the unfortunate Gerald Howarth MP, who rumour has it, is on the wrong side of an MoD revolving door because of close links with the defence industry.

Oh, hang on…

In 2007, the Motorsport Industry Association initiated the Motorsport to Defence Initiative to foster greater co-operation and develop business opportunities, here is a quote from Lord Astor;

“The MIA Motorsport to Defence Programme has already delivered many new positive business opportunities for our Members in the defence sector. I am delighted that real business has been created.”

In this article and this one

Last week BAE representatives met the Motorsport Industry Association to discuss how innovations in racing can benefit the defence and aerospace industry

Here

Lord Astor and Gerald Howarth MP, Shadow Spokesman for Defence in the House of Lords and House of Commons respectively attended the event and were able to gain a first hand experience of the considerable effort the industry is putting in to support the FRES programme.

See if you can spot Lord Astor at the Autosport International Show where Supacat were exhibiting in support of the MIA Motorsport to Defence initiative.

The same Supacat that are bidding for the LPPV contract that Lord Astor might have some part in awarding.

Click here to spot him

To what extent is it legitimate for politicians to have links with manufacturers or their industry associations?

The Coalition Agreement – Defence Issues

Issued by the Cabinet Office the full text of the coalition agreement is now available online here

The defence and security aspects are as below

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If its worth saying once, the spin edition

In the news from the MoD this week was an announcement of the launch of the Defence Cultural Specialist Unit (DCSU) that provides commanders with a deployable unit of cultural specialists to assist in building a picture of Helmandi society.

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Into the Black Hole

On the back of a damning report from the Defence Select Committee is yet another piece of untrammeled bad news from the Public Accounts Committee and the indomitable chair, Edward Leigh.

Our hearing identified the serious consequences of failings in the Department’s governance and budgetary processes. Even using the Department’s own, over-optimistic estimates the defence budget is unaffordable by some £6 billion. The exact size of the gap is dependent on the assumptions one makes about future funding, but the gap could easily be £36 billion and potentially even more.

Download it your self, here

It summarises it findings in 6 points;

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Quick, Spend It Now

So, General (BOWMAN) Dynamics have been named as preferred bidder for the demonstration phase of the Specialist Vehicle Recce Block 1. The Common Base Platform will also form the basis for a range of other variants.

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Would a Reduction in Budgets be a Bad Thing for the MoD?

More money and better spending has been our guiding principle, this might be a rather outrageous statement to make but one has to wonder if throwing more money at a dysfunctional Ministry of Defence would actually be counter-productive?

The Ministry of Defence

The Ministry of Defence hovers between two uncomfortable positions, the high cost of supporting operations abroad on one hand and on the other, a desire to maintain the mystical ‘balanced capability’. The £32 billion budget means that spending priorities can lurch between these two posts, applying pain equally without having to decisively focus on one.

We fail to adequately resource operations in order to balance future capabilities but these future capabilities are always compromised by budget pressures, a vicious circle.

A serious reduction in budget would force the issue, no hedging, no muddling through and not relying on wishful thinking as a strategic option.

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Under the Radar

Released on the same day the Green Paper the MoD also published the Defence Equipment and Support Business Strategy 2008-12 and the Blueprint: The Future Operating Model.

This Blueprint sets out the future operating model for DE&S in line with the direction set out by our Business Strategy. It describes how the organisation will ‘look’ and ‘feel’ by or during 2012. It represents an aspirational goal for the organisation to achieve over the next few years.

The Defence Equipment and Support (DE&S) Business Strategy 2008-12 sets out the strategic direction for DE&S, its’ Main Board’s priorities over 2008-12 and explains the areas where the Board will drive particular development. The DE&S Business Strategy and DE&S Blueprint are designed to be read together.

Download both from here

Blueprint

Business Strategy 2008-12

Are We There Yet?

Despite several ‘deadlines’ coming and going it looks like a deal on the A400 is close

Aviation News International is reporting that the deal will see a reduction in quantities but no reduction in order value. So although EADS looks like it is going to be allowed to renege on a fixed price contract it doesn’t like by that much.

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