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Plans to part-privatise military procurement come under scrutiny Plans to part-privatise military procurement come under scrutiny
(35 minutes later)
The Queen's speech mentions two important forthcoming pieces of legislation in defence regarding proposals that are getting more controversial the longer they are scrutinised.The Queen's speech mentions two important forthcoming pieces of legislation in defence regarding proposals that are getting more controversial the longer they are scrutinised.
The first involves plans to part-privatise the agency within the Ministry of Defence that deals with the buying, supplying and repairing of all military equipment.The first involves plans to part-privatise the agency within the Ministry of Defence that deals with the buying, supplying and repairing of all military equipment.
With an annual budget of £14bn, a staff of 16,500, and the welfare of thousands of troops at stake, the Ministry of Defence knows the future of the Defence Equipment and Support (DE&S) is crucial to the armed forces. With an annual budget of £14bn, a staff of 16,500, and the welfare of thousands of troops at stake, the Ministry of Defence knows the future of Defence Equipment and Support (DE&S) is crucial to the armed forces.
But with the MoD budget under huge stress, and the military having made a dog's breakfast of some procurement projects, the defence secretary, Philip Hammond, has been tiptoeing towards giving responsibility for running DE&S to a private company.But with the MoD budget under huge stress, and the military having made a dog's breakfast of some procurement projects, the defence secretary, Philip Hammond, has been tiptoeing towards giving responsibility for running DE&S to a private company.
This is what the Queen meant when she said, rather obliquely, that "measures will be brought forward to improve the way this country procures defence equipment".This is what the Queen meant when she said, rather obliquely, that "measures will be brought forward to improve the way this country procures defence equipment".
Last month the Guardian revealed the MoD was pressing ahead with the privatisation idea, which will involve DE&S becoming a so-called "GoCo" – government-owned, contractor-operated.Last month the Guardian revealed the MoD was pressing ahead with the privatisation idea, which will involve DE&S becoming a so-called "GoCo" – government-owned, contractor-operated.
No other military power has part-privatised such an important part of defence, and the initiative has been criticised by union leaders, experts and former military personnel. The US is worried about it too, according to a report in the Financial Times.No other military power has part-privatised such an important part of defence, and the initiative has been criticised by union leaders, experts and former military personnel. The US is worried about it too, according to a report in the Financial Times.
On Tuesday, the FT quoted a US officer raising concerns about "putting contractors in roles normally filled by government employees and the effects this would have on ongoing and future operations".On Tuesday, the FT quoted a US officer raising concerns about "putting contractors in roles normally filled by government employees and the effects this would have on ongoing and future operations".
Basically, Washington will be far less keen to share sensitive information with staff from a private company.Basically, Washington will be far less keen to share sensitive information with staff from a private company.
The other piece of legislation involves the military's reserve forces, and reforms which have also been brought about, in part, by budget pressures. The British army is being cut by one-fifth to 82,000 and the MoD wants to offset this reduction by increasing the number of reserves from 17,000 to 30,000. The Ministry of Defence has pledged £1.8bn for training and equipment for the reserves and hopes to entice troops who have recently left, or been made redundant, to enrol.The other piece of legislation involves the military's reserve forces, and reforms which have also been brought about, in part, by budget pressures. The British army is being cut by one-fifth to 82,000 and the MoD wants to offset this reduction by increasing the number of reserves from 17,000 to 30,000. The Ministry of Defence has pledged £1.8bn for training and equipment for the reserves and hopes to entice troops who have recently left, or been made redundant, to enrol.
But recruiting the extra personnel is proving a difficult task, and though reservists have played an important role supporting operations in Iraq and Afghanistan, it has taken a heavy toll on their families and employers.But recruiting the extra personnel is proving a difficult task, and though reservists have played an important role supporting operations in Iraq and Afghanistan, it has taken a heavy toll on their families and employers.
A forthcoming white paper should set out how the MoD hopes to increase recruitment numbers and should clarify the benefits to employers and reservists alike.A forthcoming white paper should set out how the MoD hopes to increase recruitment numbers and should clarify the benefits to employers and reservists alike.