12 May 2006
MPs have called for an overhaul of civil service skills at the Ministry of Defence, warning that a failure to develop commercial awareness could undermine the government's Defence Industrial Strategy.
A report on the DIS by the Commons defence select committee, published on May 10, calls on the MoD to 'identify improvements to its acquisition arrangements' and to 'ensure that best practice is promulgated and the commercial skills of its officials are improved'.
In particular, MPs are worried that the legal and contract compliance skills necessary to ensure that the MoD has adequate 'legal and production agreements' with its commercial partners are currently not as good as the DIS requires.
The government published the DIS last December. It aims to provide greater transparency to future defence requirements and, for the first time, set out the industrial capabilities that the UK needs to maintain appropriate sovereignty and operate military equipment independently. It places heavy emphasis on the MoD working closely with its commercial partners to develop those capabilities.
The DIS has largely been well received, but it has highlighted some areas where MoD skills require improvement, particularly in procurement.
Earlier this year, MoD procurement minister Lord Drayson told the committee that he 'aimed to surprise' people over the 'pace of change' at the department. But MPs this week reiterated that 'it will be important for these improvements to be implemented quickly'.
The report also calls on MoD officials to improve their understanding of small and medium-sized companies that could be involved in the defence market. It warns that the government's desire for a competitive defence market based on UK suppliers could otherwise be undermined by a lack of suppliers.
Just one UK company, BAE Systems, supplies the MoD with fixed-wing aircraft such as the Typhoon fighter jets, for example, which potentially leaves the MoD vulnerable to future BAE changes and raises value-for-money issues in contract negotiations.
The MPs call on the MoD to develop a long-term focus when dealing with potential suppliers and subcontractors.
The committee, chaired by Conservative James Arbuthnot, also recommends a funding boost for defence research and technology.
'Defence R&T has experienced a decline in funding which, if not addressed, will result in lower quality defence equipment in the future,' the committee warns. It calls for new investment to be prioritised by Treasury officials in next year's Comprehensive Spending Review.
Responding to the MPs' report, Drayson said he 'concurred' with many of its observations. 'It is gratifying that they, like we, recognise that both industry and the MoD had to change our approach if we are to sustain in this country the industrial capabilities we need to maintain our national security.'
The government will publish its formal response this summer, but Grayson added that the MoD would shortly be able to demonstrate 'practical examples' of its long-term commitments to its private sector partners.
Equality minister puts Whitehall gender pay gap at 5%
Newly promoted women and equalities minister Meg Munn has claimed the civil service's gender pay gap could be as low as 5%, rather than the 25% reported by many Whitehall experts.
Munn told the Commons that Whitehall's gender pay gap was far lower than some groups have reported once accurate comparisons of civil service responsibilities are taken into account.
Organisations such as the FDA and Public and Commercial Services unions have said the gap is as high as 25%. But recent analysis by the Cabinet Office suggests that this reflects the fact that at least 50% more women than men work in lower-grade civil service jobs.
Responding to a parliamentary question last week, Munn said: 'The median gender pay gap in the civil service is 25%, but [it] does not compare work of equal value. When the gender gap is compared by responsibility level, the pay gap is around 5%.'
Munn was promoted in Tony Blair's reshuffle last week from unpaid minister for women at the Department of Trade and Industry to a new salaried post at the Department for Communities and Local Government. She will focus on reducing gender and other pay inequalities.
The Cabinet Office recently published a diversity plan outlining how Whitehall departments plan to tackle pay inequalities and a lack of representation among many minority groups.
However, a Whitehall trade union this week urged Munn and the Cabinet Office to stay focused on the median pay gap.
A PCS spokesman said: 'We accept Meg Munn's argument about pay differentials across jobs of equal responsibility. But the median 25% gap is too large and reflects the fact that the majority of people on lower pay scales are women. Whitehall must focus on improving career pathways for women so that they are proportionately represented at higher grades. And it must tackle low-grade gender pay inequalities.'
PFmay2006
