Defence expenditure
Joined: Sep 2004
Posts: 2,580
Likes: 10
From: Darling - where are we?
LJ,
Nice post (especially on some of the assumptions on selling real estate!), which I think, if I have read you correctly broadly concurs with my thinking that all sides are guilty of pushing their own point regardless of any link to the reality of the situation. It was once explained to me that rather than considering currency levels as an abstract concept, think of them as the share price of the nation. In that sense it becomes slightly less abstract and you can start to understand how in the long term much more of the future is in our own hands, so things really could go either way. Of course, that doesn't sell copy or lead to fat fees, so it won't ever become the prevailing line of thinking.
Of course, it could mean utter disaster, and if you are correct on the L85 upgrade and barring any urgent requirement (I'm not sighted to any of that stuff), that's the sort of bizarre decision making that will cost us in the long run.
Nice post (especially on some of the assumptions on selling real estate!), which I think, if I have read you correctly broadly concurs with my thinking that all sides are guilty of pushing their own point regardless of any link to the reality of the situation. It was once explained to me that rather than considering currency levels as an abstract concept, think of them as the share price of the nation. In that sense it becomes slightly less abstract and you can start to understand how in the long term much more of the future is in our own hands, so things really could go either way. Of course, that doesn't sell copy or lead to fat fees, so it won't ever become the prevailing line of thinking.
Of course, it could mean utter disaster, and if you are correct on the L85 upgrade and barring any urgent requirement (I'm not sighted to any of that stuff), that's the sort of bizarre decision making that will cost us in the long run.
Joined: Jul 2002
Posts: 1,439
Likes: 54
From: Under a recently defunct flight path.
'Focus' article in today's Sunday Times:-
Billions wasted on trophy kit leave a big hole in the realm’s defences
snip:-
Billions wasted on trophy kit leave a big hole in the realm’s defences
snip:-
Examples uncovered by The Sunday Times include: warships so noisy Russian submarines can hear them 100 miles away; a frigate that now costs so much we can only afford to buy just over half the number envisaged; aircraft carriers that cannot defend themselves against the latest generation of ballistic missiles; and light tanks that are too big to fit into transport aircraft.
So why do so many British defence *procurement projects go wrong?
So why do so many British defence *procurement projects go wrong?
Joined: Apr 2010
Posts: 7,056
Likes: 2
From: London
not much new in that "Sunday Times" report TBH that hasn't been thrashed to death on here for several years................
I wonder who set them up for that article - I'd look at the Treasury - time to "crack down on waste at the Mod" perchance?
I wonder who set them up for that article - I'd look at the Treasury - time to "crack down on waste at the Mod" perchance?
Joined: Dec 2001
Aviation Qualifications: Military
Posts: 2,965
Likes: 484
From: The Roman Empire
There was another thread on here a few days ago on the same basic topic:
http://www.pprune.org/military-aviat...rate-hole.html
On it I asked what I thought was a fairly basic/obvious question:
..Some (most?) of these procurement programs, such as F-35/JSF, run over many years. Presumably we don't pay all the costs up front, but in a series of payments, so do not exchange rate fluctuations effect costs throughout the life of the program, and who is to say that the exchange rate might not be more beneficial in a year or so, saving us money?..
Someone was kind enough to reply saying that I was correct in my assertion.
The dollar/pound exchange rate could get much better from our point of view a short while from now - so alleviating the problem.
Of course, it could also get worse!!
Talk of £3-6 billion black holes are based on a snapshot using today's exchange rate.
http://www.pprune.org/military-aviat...rate-hole.html
On it I asked what I thought was a fairly basic/obvious question:
..Some (most?) of these procurement programs, such as F-35/JSF, run over many years. Presumably we don't pay all the costs up front, but in a series of payments, so do not exchange rate fluctuations effect costs throughout the life of the program, and who is to say that the exchange rate might not be more beneficial in a year or so, saving us money?..
Someone was kind enough to reply saying that I was correct in my assertion.
The dollar/pound exchange rate could get much better from our point of view a short while from now - so alleviating the problem.
Of course, it could also get worse!!
Talk of £3-6 billion black holes are based on a snapshot using today's exchange rate.
Joined: Apr 2005
Posts: 2,158
Likes: 49
From: UK
It's a one-way valve unfortunately. If you 'save' money on your project due to unusually favourable exchange rates you don't get to keep it - HM Treasury sucks it back. If your project takes a major hit at a contractual payment point then you either swallow the hit in some way or buy less - HM Treasury is unlikely to help.
HMG does not hedge money either, as a commercial company would, as that would be akin to insider dealing on the UK economy! Anyway, the Treasury does not lose if the exchange rate rises or falls as the MoD takes the hit.
HMG does not hedge money either, as a commercial company would, as that would be akin to insider dealing on the UK economy! Anyway, the Treasury does not lose if the exchange rate rises or falls as the MoD takes the hit.
Joined: Oct 2004
Posts: 82
Likes: 3
From: UK
BBC reporting NO RN attack subs cyrrently on station due to maintenance overruns................
We no doubt have a number of attack boats which is at least two or three down on the sensible minimum.
And the population of experienced officers in the branch drops as well. Makes for a small community - and it just takes a few extra to make early departures and you lose critical mass there too.
Joined: Feb 2003
Posts: 3,311
Likes: 365
From: uk
So why do so many British defence *procurement projects go wrong?
SA80 upgrade? So the replacement didn't hit its In Service Date (2015)?
