Web Page sponsored by Harris Corporation
17 Dec 17. Defence budget: New equipment at risk over MoD savings ‘doubts.’ Plans to buy new military equipment – including warships and jets – could be under threat, as MPs expressed “serious doubts” over whether the Ministry of Defence can afford them.
The Commons Defence Select Committee says the department will struggle to find the £7.3bn in savings required to pay for the new hardware.
It said the MoD had proved “incapable” of making such savings in the past.
The MoD said it was making “good progress” on its efficiency target.
This latest report echoes a warning from January of this year from government spending watchdog, the National Audit Office.
The cross-party committee of MPs backed the findings of the NAO that the defence equipment plan was at “greater risk” than at any time since 2012.
In 2016, the government pledged to spend £178bn on new military equipment over the next 10 years.
But that is on the assumption it can also find £7.3bn of efficiency savings – on top of £7.1bn previously announced – by selling off property and other efficiencies.
The committee chairman, Conservative MP Julian Lewis, said this was now “extremely doubtful” from an “already stretched budget”.
“This will inevitably lead either to a reduction in the numbers of ships, aircraft and vehicles or to even greater delays in their acquisition,” he added.
But the MoD said that in the face of “intensifying threats”, its £178bn equipment plan “continues to deliver the cutting-edge kit to keep the UK safe”.
The new equipment covered by the plan includes eight Type 26 frigates for the Royal Navy, new mechanised infantry vehicles and nine Boeing P-8A maritime patrol aircraft.
Image copyrightBAEImage captionEight Type 26 frigates will be bought by the MoD as part of its £178bn equipment plan
The committee also called for clarity on the “difference between genuine improvements and efficiency” and cuts to “personnel, equipment and capability”.
Defence Secretary Gavin Williamson has already been warned of a Tory revoltover cuts to army numbers and naval capability, and suggested he will be asking the chancellor for more money.
The Cabinet Office is currently carrying out a defence and security review which is due to report by the end of the year. (Source: BBC/Adrian Graves)
15 Dec 17. Macron says vigilant on Airbus corporate changes. French President Emmanuel Macron said he was closely following management changes at the top of Airbus and would ensure that the balance of national interests as well as the company’s interests are respected in the new appointments.
“For Airbus there are decisions on governance which are for the board to take. We are vigilant because we are shareholders, clients and (providers of) export support,” Macron said.
Speaking at a news conference with Chancellor Angela Merkel after an EU summit on Friday, Macron added: “We will therefore take the best (people) while ensuring that the balance, as the Chancellor has said, of the different nations is respected and while also pursuing the interests of the company”.
Macron suggested he did not however want to undermine a 2013 accord limiting the role of French and German governments in Airbus, which he helped negotiate as a senior aide to then president Francois Hollande.
The pact marked a departure from previous rules handing France and Germany considerable control, while ensuring a rotation of French and German leaders at the top.
German-born Chief Executive Tom Enders has said nationalities no longer matter in the planemaking group.
“I don’t think the solution is to let the states come back to the board. We must look out for our strategic interests and seek exemplary governance, and I expect the board to provide necessary and indispensable clarification, and updates on the management and