Lord Houghton of Richmond (CB)

I draw Members’ attention to my relevant registered interest as a member of the Thales advisory board. I offer some sympathy to the Government regarding their defence inheritance, which must appear to be an appalling mismatch between requirements and resources. When I was in the MoD, when we needed to save money, it often had to be found where savings could be made—that is, in money that was uncommitted—as opposed to where savings should be found, often on money that was committed on historic mistakes. Can the Minister therefore confirm that the process applied has been truly rigorous in respect of operational priorities? Within those priorities, the Minister mentioned the deletion of Watchkeeper. Did its deletion recognise the potential associated sensitivities to defence export sales in the Middle East, including sensitivities that involve GCAP? Secondly, the Statement mentions a “fully fledged national armaments director”. Can the Minister perhaps offer the House some insight into what is the defining element of this fully fledged national armaments director? Particularly, what will define his relationship with the defence industrial primes? Will it be a relationship that ensures that, going forward, defence capabilities are principally bought in the context of benefit to the taxpayer and defence as opposed to shareholders of defence industrial primes?