Source · Select Committees · Public Accounts Committee
Recommendation 11
11
Support costs include the cost of maintaining, repairing and upgrading equipment.
Conclusion
Support costs include the cost of maintaining, repairing and upgrading equipment. Operating costs include items like fuel, port fees and stock.27 The Department is developing its understanding of the requirements of a carrier strike group when on deployment, and believes that its cost estimates are beginning to mature.28 It has used the sea trials to improve its understanding of what it takes to operate Carrier Strike, and collect more information on the associated costs. However, the Department told us that these trials are not representative of routine operations and that it would not develop a fuller understanding of future support and operating costs until 2022.29 The first operational deployment in 2021 will therefore provide the Department with a crucial opportunity to understand what operating a carrier strike group costs.30
Government Response
Not Addressed
HM Government
Not Addressed
6.1 The government agrees with the Committee’s recommendation. Target implementation date: June 2021 6.2 The department will address the capabilities required to support the carriers as part of the Integrated Review, reporting in the first quarter of 2021. Although taut and requiring mitigation in 2022 when RFA Fort Victoria undergoes maintenance, the support shipping needed to keep the carriers supplied with fuel, munitions and stores is in place for the period up until Full Operating Capability for Carrier Strike in 2023. To allow declaration of the wider Full Operating Capability for Carrier Enabled Power Projection from 2026, and the associated routine operating model, the Fleet Solid Support requirements have been informed by operating experience and a new competition will be launched in the first quarter of 2021. Building on the success of the Type 31 Programme, the department intends to allow international partners to work with UK firms to bid for this British-led shipbuilding project. 6.3 The Integrated Review will consider the requirement for the movement of people and goods within the carrier group, noting that the department will not have a full understanding of the requirement until the capability has been “road tested” in 2021. The task is currently performed by existing utility helicopters as an interim solution. The Rotary Wing strategy element of the Integrated Review will address the out of service dates of existing helicopters, so this maritime intra-theatre lift task is one of a number that require a long-term solution. The Review should also set out the maritime elements of the future joint force including the role and numbers of anti-submarine warfare frigates. Once the Review is published, the department will evaluate the outcomes in detail and present the future investment plan accordingly.