HC Deb 30 October 2000 vol 355 cc273-4W
Mr. Sheerman

To ask the Secretary of State for Defence what steps he is taking to improve the effectiveness of the equipment supplied to the armed forces. [133021]

Mr. Hoon

It is vital that our Armed Forces are properly equipped and we are determined to ensure that the right equipment is available at the right time. We have in hand a large equipment programme to radically improve the equipment of the Armed Forces. For example, the new Type 45 destroyer will carry the world-class Principal Anti-Air Missile System; Challenger 2, which is currently being brought into service, will be the best-protected main battle tank on the modern battlefield; and the Meteor missile will allow Eurofighter to engage multiple and manoeuvring targets simultaneously, at greater range than before, in all weathers, day or night, and with a greater level of survivability.

Since taking office we have radically improved the Ministry of Defence's procurement processes. We have transformed the former Defence Procurement Executive into the Defence Procurement Agency (DPA), and created the Defence Logistics Organisation (DLO). The DLO has provided the opportunity to take a new, joint approach to the delivery of logistics support to the Armed Forces. Within the DPA and the DLO we have completed the roll out of 138 Integrated Project Teams (IPTs), to manage specific equipment projects through their procurement and in-service lives, continually searching for ways to improve its operational effectiveness and its efficiency. And within the Ministry of Defence Central Staff we have established an accountable customer who provides, for the first time, a single focus responsible for taking forward planning decisions based on capability need.

We have introduced a whole life approach to equipment acquisition focused on long-term operational effectiveness and cost, and streamlined our management structures and processes. Incremental acquisition is used where appropriate to keep up with rapidly emerging technologies and reduce risk. We are also investing more, and earlier, to reduce procurement risk. With industry's close involvement, this should result in better project definition (and cost estimating).

Measures to sustain and maintain the Smart Procurement initiative are being taken forward under the title 'Smart Acquisition', recognising the through-life nature of the business.