Though this be madness, yet there is method in't

William Shakespeare

CHAPTER 48

A Written Statement from the Secretary of State for Defence

At a time when our armed forces are conducting operations around the world, it is important that the Ministry of Defence Department seeks every opportunity to ensure that every pound of the tax payer's money devoted to defence is used to best effect. I am therefore announcing a number of improvements to the way in which we use that money.

Subject to consultation with the trades unions, we propose to make a number of changes to the organisation and processes by which we manage defence. Together, these changes will lead to better delivery of support to our armed forces and the front line.

The Department has recently published the Defence Industrial Strategy Paper, “Defence in a Changing World.” The Defence Industrial Strategy set a challenge for both industry and the Department. We are asking British and European industry to work more effectively with us and our allies, and in a number of sectors, to restructure better to meet all our needs. We are working closely with them all to achieve this. Equally, the strategy calls on the Department to make a step change in the manner in which it conducts the acquisition and management of military capability. We believe that in order to get the maximum amount for the Tax Payer, both here and in Europe, we must work closer together. It is no longer acceptable for Europe to run duplicate defence programmes, wasting both time and money, when one programme could satisfy the defence needs of all Europe. In response, a senior official was appointed in to conduct a review of current structures, organisation and processes to determine whether these support, encourage, hinder or obstruct the Department's ability to deliver through life capability management. The report—"Change Enablement For A Better Future"—has now been presented to Ministers who, subject to consultation with the trades unions, have accepted its recommendations. A copy of the report has been placed in the Library of the House of Commons, and also can be viewed on the Department's website.

The report stresses both the primacy of through life considerations and that improving acquisition skills is critical to success. It recommends changes to the Department's planning processes, including to the part played by the front line commands, and the governance of acquisition. These changes are designed to facilitate through-life capability management and to make the Department more agile against a background of rapid changes in the security environment and technology. The review also concluded that the Department should build on the progress made by the increased cooperation with our allies in Europe, in some cases by merging acquisition programmes across frontiers under one European Defence Procurement Logistics Organisation. This international cross border cooperation will remove a fundamental barrier to through-life capability management across Europe and enable us to source capability from the best provider, wherever that provider may be.

The new organisations will take the best from each member and form a single entity responsible for the procurement, maintenance and sustainment of military capability, continuing to draw on the private sector across Europe where this will provide best value for money. Its fundamental ethos will be the delivery of equipment and logistics capability to the front line and for operations. Arrangements will be put in place to run the new organisations under a unified multinational management structure over the following 12 months while the new organisations establishes themselves. An open competition will be run to appoint the head of the new organisation. This head may not be a Briton, but we can be sure that whoever is chosen will have the best interests of this country and of all Europe as the organisations prime objective.

Implementation of the recommendations will represent a significant change programme for the Department. Ministers and senior management are committed fully to taking it forward as swiftly as possible. However, throughout this period of change, delivering new capability and maintaining support to the front line, of this and other European armed forces, will remain paramount.

I can also confirm that we intend to increase Britain’s presence in near space. To this end we will establish a new Headquarters Space Forces. There are now over a dozen countries with a space launch capability and several with a presence on the Moon. Although non of this directly influences our national security, the Department believes the time has come for Britain to consider it’s position dependant on the unmanned space launch capability of our allies. This new organisation will be tasked with providing a centralised management structure to fund and coordinate our various space initiatives and establish new capabilities. The preferred site for the new Headquarters Space Forces will be MOD Carbonec on Salisbury Plain. It will be formed from the integration of elements from The Royal Navy, The Fleet Air Arm, The Army and the Royal Air Force. Subject to further work and final decisions next year, we envisage that Headquarters Space Forces will be fully operational at Carbonec within two years. This will provide the new organisation with a



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