Defence – in the House of Commons on 13th June 2022.
What assessment he has made of the effectiveness of the Ajax vehicles programme.
I think that Question 13 was not grouped with this one to give Mr Jones a whole theatre of his own to ask his question. I will be first to support that when we come to it.
We have been clear that this is a troubled programme, and we have not paid a penny to General Dynamics under the Ajax contract since December 2020. Ajax will be a formidable capability. We want it to work and for General Dynamics to deliver it, but we will not take a vehicle into service that is not fit for purpose. We benefit from a robust contract and will make use of it.
But look, the Secretary of State has effectively admitted the failings of the Ajax programme, which are very public and have been comprehensively exposed by both the Defence Committee and the Public Accounts Committee. Unfortunately, since then, we have not had any indication—not even in his reply—that the fundamental problems have been resolved, and the Army is facing a dangerous gap in capacity. Will he either announce that he will scrap the failed programme or give us an early, fixed and firm timetable for such a decision? Stick or twist, Secretary of State?
The Ajax programme is a troubled programme. We agree with many of the recommendations in the Public Accounts Committee’s report. We are independently testing a number of the issues arising with that programme and we must ensure that, when we take another step, it is evidence based. As I said, we are clear to make sure that we bring it into service. In the meantime, we have withheld payment—a considerable amount of money—since December 2020. That is really important. General Dynamics wants this resolved, and we want it resolved.
I am glad that the Secretary of State mentioned that the MOD did not pay General Dynamics throughout 2021; by December 2021, it had paid £1.1 billion less than scheduled. However, the position is not sustainable in the local economy or in the Welsh economy as it is causing real anxiety among the workers, the wider economy and the local supply chain. When will the Government give an answer on what they will do about Ajax? I agree with my right hon. Friend John Spellar, who mentioned the report by the PAC. Anybody who has had anything to do with Ajax will say that, after 12 years, enough is enough and a decision must be taken.
I understand the hon. Member’s frustration and that of the workforce in Wales, who had hoped and wanted to produce a vehicle that was fit for purpose and would add to the British Army’s important capability. We have to proceed based on science and evidence. Like General Dynamics, we are bound to a contract, and I do not want to say anything that would jeopardise those positions. We have done independent trials and, when those results are forthcoming, we can have a further discussion. I recently met the head of General Dynamics and made my position on the next steps very clear. As I have said from the beginning, we will not accept into service a vehicle that is not fit for purpose.