RR 04

Further supplementary memorandum from the Ministry of Defence

1. Do you have Action Plans in response to the NAO Report: Support to High Intensity Operations (HC 508 2008-09) and to the subsequent PAC Report (HC 895 2008-09)? The Committee would like a copy of the latest iterations of these Plans.

The Department is currently in the process of drafting the Treasury Minute in response to the Public Account Committee's report into 'Support to High Intensity Operations'.  We are expecting this to be laid in Parliament around 14 December.

2. Dai Havard asked questions about the statement, in the Secretary of State's letter to the Chairman about the Strategy for Defence on 27 October, that "We will improve the strategic management of the Defence through a new framework with this strategy at its heart, giving firm direction to those responsible for delivery and holding them to account though a revised and relevant performance management system". The Secretary of State agreed to write setting out the detail of the revised performance management system including the processes and content of the performance management system and the timetable for its full delivery to the MoD with any interim target dates. The Committee would like to see the output of the "dummy run" of the system recently undertaken by the Defence Board, as described by Admiral Richards. The Committee would also find it useful to have an explanation of how the performance indicators and other metrics fit in with the reporting on progress against PSA and DSO targets.

As part of the pre-Defence Review work on Strategic Management, the Department is revising its top level performance management system in order to better enable the Defence Board to assess both how well the Strategy is being implemented, and whether the Strategy is delivering policy effectively. The work is at the developmental stage, with a prototype report expected to go before the Defence Board in February. Meanwhile, the current Defence Balanced Scorecard will run through Financial Year 2009-10 and will form the basis of the 2009 Annual Report and Accounts. The new system is expected to become operational in the Spring in order to provide a baseline of strategic performance information prior to the Defence Review. Following initial implementation, the system will be subject to continuous improvement in order to ensure it remains best aligned to Defence business.

The outline design of the new system is based on an assessment of the utility of the current Balanced Scorecard and Quarterly Performance Report in the context of the challenges faced by Defence today, including, for example, the challenges posed by enduring current operations, and in the future, and of a survey of other performance management systems and current academic literature. It is being designed and implemented entirely by the core staff of the Department.

It is proposed that there is an annual strategic performance report which will allow the Defence Board to better understand strategic progress and direct the Department accordingly. In addition, a more focused quarterly report will provide the Defence Board with assessments of delivery performance against key objectives. PSA and DSO targets that sit within the CSR07 settlement will continue to be reported on in the usual manner, but with underpinning information provided from the new internal performance system.

We would be happy to share the prototype report with the Committee once the Defence Board has judged it to be sufficiently mature, probably by March 2010, and would suggest this is accompanied by a brief in order to explain the new framework fully.

3. The Committee would be grateful for confirmation that the Defence Training Review has not slipped further to the right and is not being delayed because of current funding or other difficulties.

Following the successful conclusion of negotiations with the preferred bidder, Financial Close for the Defence Training Review is provisionally programmed for the end of November 2010.  This is later than the previously announced date of Summer 2010, primarily because in the current financial climate, it is likely to be more complex for the preferred bidder to obtain bank funding than initially anticipated.

Work is being undertaken on the commercial core of the project agreement to provide the necessary confidence to enable the provisional programme to be confirmed before the Parliamentary Christmas Recess.

4. Clearly, the recent improvements in recruitment have resulted in some financial pressures because of additional resources needed to pay the recruits. The Secretary of State told the Committee that, as far as he was aware, these improvements in recruitment had not resulted in gaps in any other aspects of the resources needed for new recruits such as training capacity or the provision of accommodation. The Committee would be grateful for any information about the strain on initial and other training given the increased number of recruits and also on accommodation for new recruits and their families.

Overall the military training system has addressed successfully the Phase 1 (recruit) and Phase 2 (specialist) training challenges presented by the requirements of recruitment.

The Committee should be aware that the MoD policy only provides accommodation for families once recruits have finished their professional training (phase 2 training). More specific detail for each of the single Services is as follows:  

Royal Navy - The Royal Navy has no problems with the capacity of its accommodation related to the influx of new recruits. There are, however, issues in relation to the quality of what is now regarded as ageing accommodation for both Royal Navy Officers and Ratings at both HMS RALEIGH and Britannia RN College.  To mitigate, there are, plans in place with the Royal Navy Estates Organisation to upgrade and replace the relevant accommodation over the coming years.

Army - The increase in recruits has meant the Army has had to increase the number of instructors (training teams) but all of this has been within the Army Recruiting and Training Division's capability.  The Army has the infrastructure (in terms of both accommodation and training capacity) to cope. As interest in a career in the Army increased at the latter end of 2008, the Army were able to use this information to forward plan and prepare for the surge in training.

Royal Air Force - The RAF training system has adapted well to meet this challenge, with resources re-allocated to Phase 1 and 2 Training Establishments to enable them to deliver the training quality and quantity required.  A number of specific measures have been taken, including the re-activation of accommodation blocks and the provision of additional training staffs.  The RAF training system is currently focused particularly on ensuring that the trainees progress through Phase 2 training in a timely and effective manner.

5. The Committee would also be very interested in information on improvements in both the quality and the quantity of new recruits and, in particular, recent wastage rates during training compared to those in previous years.

Royal Navy - Over the past 18 months there has been a significant increase in recruiting of Royal Navy Ratings and Royal Marine Other Ranks in order to achieve manning balance as soon as possible and full strength by 2011. There has been no significant increase in Royal Navy/Royal Marine Officer recruiting over the same period. To a greater extent the quality has been maintained.

Army - In February 2009, graded selection was introduced to identify the best candidates from the selection process in order to expedite their entry into training.  Graded selection assesses the mind, body and character of potential recruits and is measured in terms of Commitment, Effort, Suitability and Attainment/ability.  Successful candidates are then graded, which enables the Army to train "the best first". Although early results are promising, it will be some time before the Army will be in a position to examine which factors really make a difference in selecting the right people and guiding them towards the right career.

The quantity of individuals passing through Phase 1 and Phase 2 establishments is in excess of 100%.  In numerical terms, there have been 2-3000 more recruits in training at any particular time than in 2008-09. Wastage has also significantly decreased.  It currently resides at a rolling 12 month average of 28.9% compared with 34.1% in April 06.  This has been due to increased investment in nurturing and retention in training initiatives, along with the influences of the economic environment over the last year.

Royal Air Force - The standard of the successfully selected recruits remains high and continues to meet the input standards of the RAF.  The current economic situation has undoubtedly led to an increase in the number of applicants and consequently an increase in recruitment in the year 2008-09. We remain mindful that, in the future, the economic situation should improve, which may cause the level of applications to fall to previous levels.

The wastage rate for ground airmen in Phase 1 training is currently 8% for 2009-10, which compares favourably to 10% in recent years. The wastage rate for Officers for 2009-10 is currently 6%, compared to 4% for 2008-09. It is expected to return to historic norms by the end of the year.

6. Terence Jagger said that the MoD expected more information to be available from DASA on the manning numbers of the Army. The Committee would be grateful to know when this information will be available. The Committee would also like to know what type of information will be available on manning, recruitment and retention including of pinch point trades and if it will include data on the breaking of harmony guidelines in the Army and other Armed Services.

The latest UK Armed Forces Quarterly Manning Report containing data as 1 October 2009, was published on 26 November 2009. The report includes the latest breakdown of the full-time trained strengths and requirements including breakdown by sex and ethnic origin and the numbers recruited (intake) into the Armed Forces. A full copy of the report is attached.

Retention of Service Personnel remains a high priority, particularly for those personnel who are in Pinch Point trades, in order to maintain operational capability and robust manning structures. The decreasing level of Outflow over the past 12 months (predominantly as a result of less Voluntary Outflow rather than a reduction in Planned Outflow) is very encouraging and the focus is now swinging towards maintaining these levels as the economy improves over the next few years. Current retention levers such as Financial Retention Incentives, career breaks, the Tri-Service Commitment Bonus and improved support to families, will be essential and must continue to be refined and targeted at the most vulnerable trades.

The Manning Report does not include data on breaking harmony as this is not routinely published. However, as at Quarter 2 (1 July 2009), the percentage of personnel breaking Harmony Guidelines is as follows:

Royal Navy - less than 1%

Army - 10.3%

Royal Air Force - 5%.

7. The Committee would like to know the latest position on manning levels and on voluntary outflow for each of the three Services, in particular, the Army.

The Trained Strengths as at 1 October 2009, which are subject to ongoing validation are:

a. The Armed Forces: 174,890; 97.98% of the 178,490 requirement.

b. Royal Navy: 34,980; 98.1% of the 35,660 requirement.

c. Army: 100,450; 98.5% of the 101,980 requirement.

d. Royal Air Force: 39,460; 96.6% of the 40,860 requirement.

Voluntary Outflow is calculated from figures for Service Personnel who apply to leave the Armed Forces outside any formal career break points.  The average annualised Voluntary Outflow rate for each of the services is shown in the table below:

Voluntary Outflow reflects the level of personal satisfaction which can be affected by factors such as work/life balance, housing, spouse's career, family stability, pay etc.  Measures to counter such factors are taken to reduce Voluntary Outflow and in particular, for  Pinch Point trades, through Financial Retention Incentives.  The current levels are lower than average which is largely attributable to the economic situation.  The challenge is to maintain these historically low levels as the economy improves.

Data on reasons for leaving the Army have not been available on JPA since 1 April 2007. This is due to: data being poorly entered on to JPA; problems processing outflow and incomplete Queen's Regulations on JPA, which prevented the correct codes being entered.  These issues are being dealt with by Army Personnel Centre, Service Personnel and Veterans Agency and Defence Analytical Services and Advice, but further work is required until they are fully resolved.  Voluntary Outflow for Army Other Ranks, starting with the 12 months to 31 March 2009, onwards is now included. 

8. Given the shortage of nurses in the Army, the Committee would like to know manning levels for the various types of nurses in the Royal Navy, the Army and the Royal Air Force including, separately identified, those in the Reserve Forces.

In line with a recent PQ 00107X we will be placing a copy of the Defence Medical Services Manning Statistics in the library of the House, once we have compiled the most recent set of statistics.

9. The Secretary of State agreed to provide a note on what is meant by the figure "17 per cent of the Armed Forces are deployed" used in the MoD Annual Report 2008-09, setting out where exactly these people are.

As at 31 March 2009 there were 172, 596 fully trained military personnel out of which 20,052 (17%) were deployed on operations and undertaking Military Tasks. There are 18 Military Tasks that reflect the full range of tasks and operations which the United Kingdom (UK) Defence should expect to undertake. Military Tasks are grouped under four generic headings: Standing Strategic Tasks, Standing Home Commitments, Standing Overseas Commitments and Contingent Operations Overseas. There are 18 tasks encompassing the independent nuclear deterrent, strategic intelligence and data gathering vital to gaining insight and understanding of the strategic environment, protection of UK sovereignty, security at home in support of Other Government Departments, projection of the Armed Forces public profile, national obligations to Overseas Territories, commitment to international alliances and partners (as a means of safeguarding UK interests overseas), the promotion of UK influence and support around the world, and the range of contingent operations which may demand the commitment of UK Armed Forces.

UK Armed Forces were deployed extensively, principally across Afghanistan, Iraq, the Balkans, Cyprus, Democratic Republic of Congo, Sudan, Dafur, Georgia, Liberia, Sierra Leon, Nepal, Horn of Africa, Northern Ireland, Falkland Islands, Ascension Islands, Gibraltar and British Indian Ocean Territories.

Although figures vary on a daily basis, UK Armed Forces were deployed:

(a) On contingent operations overseas, predominantly in Afghanistan (8,100) and Iraq (5,483).

(b) On United Nations operations in the Balkans (Kosovo (156) and Sarajevo (14)), Cyprus (277), Democratic Republic of Congo (6), Sudan (6), Georgia (5), Liberia (3), Sierra Leon (1), Nepal (1) and EU African Mission in Sudan/Darfur (AMIS) (3).

(c) Meeting continuing standing commitments with forces in Northern Ireland (304), Cyprus (2,277), the Falkland Islands and Ascension Island (1,063), Gibraltar (125) and British Indian Ocean Territories (36).

(d) Contributing to the NATO standing naval presence in the Atlantic and Mediterranean.

(e) Maintaining the UK's independent nuclear deterrent, continued to protect UK airspace and waters and provide support to the civil authorities for search and rescue, fishery protection, bomb disposal and counter-drugs activities.

(f) Contributing to HMG's counter-terrorism strategy by delivering military advice and assistance across all four strands (PURSUE, PROTECT, PREPARE, PREVENT), including training assistance to a number of high priority countries in capabilities such as land and maritime border security, counter-terrorist detention, public order, and aviation security.

(g) Supporting UK led Counter Piracy operations off the Horn of Africa as part of NATO, EU and Coalition initiatives as well as helping protect World Food Programme shipping.

10. When will the concept phase for Trident be announced and what are the reasons for the delay?

We had originally planned to consider the Concept Phase in Autumn, but further time has been required to ensure that we take decisions based on robust information.  We are aiming to be in a position to make an announcement early in the New Year.

11. The Secretary of State agreed to provide the Committee with a copy of the classified Recuperation Directive. The Committee would be grateful for an explanation of the latest state of play on planning for recuperation.

Please see classified note accompanying this document.

12. The Committee would be grateful if the MoD could set out what the sum of £300 million agreed with the Treasury for recuperation will cover, and what the MoD will have to bear from its own budget. Could you confirm that this £300 million will be provided by the Treasury.

Please see classified note accompanying this document.

Ministry of Defence

4/12/2009