MoD criticised over late projects

The Ministry of Defence is failing to properly manage its major equipment projects, allowing costs to mount and delays to lengthen, a watchdog says.

The National Audit Office said large-scale projects had fallen a further 96 months behind schedule this year and costs had risen by £205m.

Its report found some progress had been made in improving procurement practice.

Defence officials said the report looked at only 20 of 350 projects and its priority was getting kit to troops.

National Audit Office head Tim Burr said the Ministry of Defence had made some progress but performance remained "variable".

"Until the MoD and the defence industry improve their decision-making processes and show sustained learning from previous projects, value for money will not be consistently delivered," he said.

'Risk involved'

The NAO found the MoD had "broadly kept costs under control" this year on all but two projects: the Beyond Visual Range Air-to-Air Missile System and Mark 4 Nimrod aircraft.

Quentin Davies, minister for defence equipment, said the MoD was currently managing 350 complex equipment projects at various stages of concept, assessment, development and manufacture, valued at more than £65bn.

"Many of these are at the leading edge of technology and therefore involve risk," he said.

"This is about more than money - this kit will sooner or later be operated, perhaps in anger, by our men and women in the forces"
Edward Leigh, Commons public accounts committee chairman

"When it comes to the delivery of equipment for our armed forces, we should never be complacent.

"We always look to make improvements and build on the progress we have made."

Tory MP Edward Leigh, who chairs the Commons public accounts committee, said the "same old failings" were potentially leaving British troops unprepared for front-line action.

"This is about more than money. This kit will sooner or later be operated, perhaps in anger, by our men and women in the forces - and it is not good enough, to say the least, if it is late coming into service or does not do what it was originally supposed to," he said.

'Culture of incompetence'

Shadow defence secretary Liam Fox said: "Once again the Major Projects Report reveals the government's failure properly to manage the long-term defence procurement programme," he said.

"Delays in projects have tripled since 2006 and costs have risen by £205m."

Liberal Democrat defence spokesman Nick Harvey said the report was further evidence of the "culture of incompetence" at the MoD.

"Miscalculations and hopelessly unrealistic expectations have taken a massive toll on Britain's already overstretched defence budget," he said.

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