UK squandering millions on defence, say MPs
IRNA - Islamic Republic News Agency
London, Mar 4, IRNA -- Britain’s Ministry of Defence (MoD) is squandering hundreds of millions of pounds a year on unproductive activities because it has commissioned more work than it can afford to pay for, a parliamentary report warned Thursday.
The practice of delaying projects to reduce costs in the early years of a program is adding to overall defence procurement costs and further increases the funding gap, the Defence Select Committee also said.
The report highlights last year's National Audit Office criticism of the MoD's "save now, pay later approach" that was driving up costs and accuses ministers of giving "misleading" answers to MPs scrutinising its budget.
"The Defence Committee cannot fulfil its scrutiny role for Parliament if the MoD refuses to provide such information about its activities,” said committee chair James Arbuthnot.
During the inquiry, the MPs were told that the overall equipment funding gap was reduced from £21 billion ($32 bn) in 2008 to £6 billion in 2009 but could not explain how this had been achieved.
Concern was also expressed about cuts to the research and technology budget from an equivalent of £947 m fifteen years ago to only £439 m in 2010/11.
"Spending less on research and technology will make the UK defence industrial base progressively less competitive and will make the Defence Industrial Strategy inoperable,” Arbuthnot warned.
“To compromise the future development of defence technology, in order to make proportionately small short term contributions to the management of the equipment program funding gap, is ill-judged,” he said.
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End News / IRNA / News Code 993804
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