Defence Equipment and Support Debate

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Department: Ministry of Defence

Defence Equipment and Support

Lord Lancaster of Kimbolton Excerpts
Tuesday 17th July 2012

(11 years, 10 months ago)

Commons Chamber
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Nick Harvey Portrait Nick Harvey
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As far as I am concerned, the proposals will have no impact on that. The specific contracts to provide particular services and products will be unaffected by the changes. They will enable us to secure better value for money in future when we make further contracts on a variety of defence procurement issues.

Lord Lancaster of Kimbolton Portrait Mark Lancaster (Milton Keynes North) (Con)
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Urgent operational requirement contracts have played an important part in recent years, but unlike with planned procurement the through-life costs are often not included in the initial costs. How will the through-life costs be accommodated in an overheated defence budget?

Nick Harvey Portrait Nick Harvey
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Decisions on whether any of the procurements that we made under the UOR process should be brought into the core defence programme will have to be taken individually in respect of each procurement. Some will be brought into the core programme, and at that point a full analysis of through-life costs will have to be made. Others, despite having performed well in theatre, will not be brought into the long-term defence programme. The type of scrutiny that my hon. Friend seeks will take place at that point.