prOOne
First I never said which government introduced RAB, if it was the Tories then it was the Tories (I did not support them at the last 2 general elections so not sure what your point is).
Secondly RAB and all its effects hit the MOD in 2002/03, under the LABOUR government. RAB may be a good way for industry and business to keep an eye on their holdings/net worth etc but largely is immaterial to a non profit making organisation. The effects of RAB have been rediculous within the MOD, probably through poor advice and lack of training. Why else did we see armoured Land Rovers (which the MOD have bought and paid for) being sold off to avoid RAB and depreciation charges only to be bought back (at much inflated prices) when we needed them. Good use of the taxpayers money? I think not.
I see you do not deny the main thrust of the argument which is that ON PAPER the MOD receive £30B, but they do not get £30B cash. £6-7B is "returned" to HMT in RAB and depreciation charges. The MOD do not therefore get to "spend" £30B on people and equipment.
Next as the MOD/DPA now work in 'whole life costs', the decisions to procure new kit are made on the costs of all elements including infrastructure etc. Much of the infrastructure would not need to be changed nor would much of the GSE. As to unproven design etc etc much of our kit would never be procured if we stuck to the "Well its a Land Rover* replacement so we must buy a new Land Rover*" argument that you seem to advocate.
*- Insert as required; Hawk, submarine, aircraft carrier, Harrier, Hercules.
Much of the "experience" we have on the Hawk T1 will be of limited benefit as the 127 is significantly different from the T1 anyway.
And you also miss the point that government directed procurements such as the Hawk do have a major impact on what else is bought. The additional costs required to buy Hawk (approx 1/3 more expensive than the opposition) have to be found from within the Defence budget - it is not provided by HMT. So the MOD and DPA recommend the alternative, the Government direct the Hawk but do not provide additional funds, so the extra 1/3 has to be found from within the EP. That means other procurements are delayed, or reduced in size, or cancelled. The decisions as to what goes are decision conferenced by staffs from DEC (MOD), DPA, RP Staffs, DGE's Dept etc etc. All decisions go to the IAB and the budget is signed off by SofS. Sadly therefore government directed procurements, directed by individuals who sit around the Cabinet, do have an impact on what is procured at other levels. If you need to find another £ x million for the government directed and therefore mandated kit something else has to go - simple!
Sorry - bit off topic, I apologise.
