Ajax Noise and Vibration Review

Rosie Winterton Excerpts

Wednesday 15th December 2021 Commons Chamber

[Jeremy Quin]

I thank the shadow Secretary of State for welcoming the transparency that this report represents from the Ministry of Defence. He is absolutely right that its commissioning and publication have sent shock waves through Defence. That is valuable and important. Everyone needs to be aware of the important imperatives—people need to answer for them and ensure that they are on track—and, even by commissioning and publishing this report, we have sent an important and salutary message, as well as learning a lot of detailed facts. He was generous in that respect, but he was most ungenerous and wrong regarding the Secretary of State.

As set out in the report, we first knew of this issue in November 2020. Ministers acted promptly. I am concerned that at the time it was described to me as a late discovery item, and that was mentioned in the report, and a culture of optimism bias continued. That is why I insisted that no IOC would be declared without ministerial involvement. That is why we were, and have been, very focused on ensuring that we got to grips with this programme, which we have, and on ensuring that we had this report not only commissioned, but published.

The report has laid bare a host of very difficult issues inside Defence, across a whole series of organisations. That is what the Defence Secretary and I are absolutely focused on getting to grips with, and what we are doing. The purpose of the report was not to apportion blame, but to discover the facts. That is the normal process in industrial companies where there are issues of concern—to establish the facts and to set out recommendations. That has been done.

We want to have a second report—I have referred to that previously in the House—to dig deeper and to make certain that the lessons are learned and that the recommendations are appropriate. As I have said, if there are examples of gross misconduct, they will be acted on.

What the report revealed, however, is a deep cultural malaise: across Defence, horizontally, parts of it are not speaking to each other as they should be on a programme of this nature. Concerns are not being elevated as they should be, vertically up through the system. That is a problem, a failing, and it needs to be addressed. If we want to have proper procurement, we cannot have a culture in which people take the view that they want to hear only solutions and not problems. It is necessary to have a proper airing of concerns and for them to be taken up and dealt with.

The shadow Secretary of State raised a number of other points. A large number of hulls have been delivered to Merthyr and are being worked on. Of course, there has been a succession of capability drops in the project, so hulls will have to be enhanced and improved over time.

The right hon. Gentleman may believe that things have got worse. That is not my experience. On the contrary, we are in a far, far better position than we were last year and in a far better position than we were six months ago. Detailed work has been undertaken and conclusions from Millbrook will be with us before Christmas. GD has growing confidence in the design modifications that it believes can be effected. I will have no position on them until we have tested them, gone through them and made certain that they work, that they are efficacious and that they give us the kick that we require. There is a lot of work still to be done on headsets, but I have seen the benefit of having a full-time focused SRO and with ministerial focus on the project, driving it forward. We are in a far better place to take decisions on Ajax than we were. The project is in a healthier state than a year ago, as should be the case. It is an important capability that we need for our operational requirements, and we will continue the hard work to ensure that it is delivered.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the Chair of the Defence Committee.

[Mr Tobias Ellwood (Bournemouth East) (Con)]

I commend the focus that the Minister brings to the situation, which is very refreshing indeed. However, he speaks of a troubled programme with cultural and systematic failures and of commissioning a senior legal figure to investigate. The project is a complete mess. Indeed, our whole land warfare programme is now operationally suboptimal as we cut our tank numbers, all our armoured fighting vehicles and our recce vehicles and introduce Boxer—a wheeled vehicle but with no substantial firepower—and Ajax. As we have discussed, it is a £5 billion project that was expected in 2017, but only a dozen vehicles have arrived, and people are being sent to hospital because of the vibration problems. The MOD is fortunate that the west—sadly, this includes the UK—is now so risk-averse as we would struggle today to send appropriate hardware into Ukraine in a move that, in my view, would deter Putin from invading.

The real scandal is the cover-up and dishonesty that led to the integrated review hiding those very problems with Ajax that the Minister spoke about so that it would not be axed. I spoke to a number of four-star generals, and nobody expected it to survive the integrated review. It makes it difficult for me to call for defence spending to be increased to 3% to improve our defence posture because of the threats coming over the horizon when money is spent so poorly. I call on him to set a date in February when, if the procurement issues are not resolved, the project will finally be closed down.

[Jeremy Quin]

I thank the Chair of the Defence Committee for his comments. Last year, his Committee produced a helpful report on armoured vehicles that made absolutely clear the requirement to invest more in that part of our defence. The Committee was right to do that and to highlight those concerns, and it should be reassured by the investment that we are putting into Boxer and Challenger. A £41 billion programme of investment in equipment and support is going into the Army in the next 10 years, and £8 billion of that is new. We differ, however, on the requirement for a recce vehicle of this nature. We need such a 24-hour vehicle that can operate in all weathers and all conditions to provide that critical ground reconnaissance, and that is what we are procuring via Ajax.

We must make certain that we have all the facts, because decisions are best made with all the facts. The root cause analysis on noise and vibration is in process, and we are doing that at pace. I am determined to drive answers on that. My right hon. Friend is right to ask searching questions, but, as I said, we are in a far better position than we were six months ago to understand what is going on. I hope that, early next year, we will know far more and be able to say, “Yes, this is a capacity that we can bring in and will work.” I am hopeful that we will get there, but it depends on the analysis that we do.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the SNP spokesperson.

[Dave Doogan (Angus) (SNP)]

I thank the Minister for advance sight of his statement. This is a sorry tale, but more importantly, it is a strategically very important equipment failure that leaves a very serious capability gap. I, for one, am clear that the Minister’s statement does not satisfactorily address the issues.

The health, safety and environmental protection review gets to the heart of the failures. It provides helpful definition and sources for the catastrophic failures—numerous as they are—in the management control issues, which have come to define the literally incredible £5.5 billion defence procurement fiasco. I am sure that others will detail the chronic operational consequences of those failures for the ability of UK forces to fight and defend, so I will concentrate on technical details.

I said in this Chamber some months ago that the problem was

“not…MTU V8 diesels or the Renk transmissions”—[Official Report, 9 September 2021; Vol. 700, c. 494],

which were tried and tested assets in other platforms. So it has come to pass.

The review highlights the failure of the

“Track, suspension and running gear, in particular the tension and sprocket design/track interface”,

which are unique to Ajax. The engine, good as it is, is a proven engine poorly mounted in a badly designed vehicle. We also learned today that, as the review sets out, there were

“Quality issues associated with…inconsistent routing of cabling, lack of…weld quality…insecure components”.

That does not sound to me like a £6 million vehicle. The shoddy design and appalling quality management represent engineering management from a truly different era.

There is no shortage of concerns about the programme, but one of them is about the tone of the report: “This was all very difficult, and we’ve taken a look back to see where things went wrong.” Two elements are missing from that rather lightweight mea culpa routine: who is carrying the can, and what is the future of the programme? Can the Minister identify who will take responsibility for this almost limitless failure?

Currently, GD UK management are clearly letting down the workers at Merthyr and Oakdale. What discussions has the Minister had with GD US about their future? When will he make a final decision on the future of the programme?

[Jeremy Quin]

I am impressed with the hon. Gentleman’s attention to detail, but technical issues are not really within the scope of the health and safety report. Mr King would not claim to be the person who can put the House’s mind at rest on technical issues, but there is a huge amount of ongoing work on the matter. The Millbrook trials have concluded, as I say, and we are waiting for the conclusions to arrive before Christmas, and they will be analysed. That will get to the heart of the issues with root cause analysis of noise and vibration, which I know the hon. Gentleman will look forward to with eager anticipation. I will update the House on what the answers turn out to be; I would rather not prejudge that technical analysis.

The hon. Gentleman refers to General Dynamics. One of the positives in the programme since the issues came to light is that we have had a complete transformation in the relationship with General Dynamics, which has been taken up at a very senior level: I speak to the global chief executive, and she has been in direct communication with the head of DE&S. That has helped to drive real performance through General Dynamics, all the way through the system. We are seeing a complete transformation in how it views the programme, in its determination to succeed and in its willingness to embrace the problems, which are clear. It has its own theories about them and is developing design mitigations and design resolutions. We have yet to see whether or not they can absolutely succeed; clearly we will wish to test that independently.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call John Spellar—[Interruption]—Sir John Redwood.

[John Redwood (Wokingham) (Con)]

Thank you, Madam Deputy Speaker. The Minister says that there is a robust fixed-price contract, which is great news. Is he guaranteeing to the House that the very considerable remedial costs will not fall to taxpayers in any way?