Source · Select Committees · Defence Committee
Recommendation 104
104
Rejected
Mothballing retired equipment to create a strategic reserve remains a viable option
Conclusion
Successive Defence Committees have looked at the possibility of mothballing equipment due to be retired220 to create a strategic reserve of equipment which could be utilised in the event of high intensity warfare. In 2018, the Government told our predecessor Committee that: When equipment is approaching retirement, Defence always has the option to retain it in reserve if it might be needed rapidly to provide additional capacity in the event of a major crisis. This will require the consideration of a number of factors, including the availability of suitable storage facilities, the cost of maintaining the equipment and the human resource to support 216 Oral evidence taken on 12 December 2023, HC (2023–24) 54, Q74 217 Q23; 67 218 Oral evidence taken on 18 April 2023, HC (2022–23) 1246, Q20 219 Q349 220 Defence Committee, Tenth Report of Session 2022–23, Aviation Procurement: Winging it?, HC 178, Para 37–38; Defence Committee, Eighth Report of Session 2017–19, Indispensable allies: US, NATO and UK Defence relations, HC 387, Para 41; 44 42 Ready for War? its effective re-mobilisation. Ultimately, deciding to take this option for equipment depends on whether retaining the equipment is considered the most cost-effective decision when all relevant factors are taken into account.221
Government Response Summary
The government clarifies that decisions on retiring equipment are made by Front-Line Commands, considering factors like obsolescence, maintenance costs, and the availability of spares. It explains that long-term storage is often not viable due to expense and unsupportability, and that equipment may be cannibalised for parts for remaining fleets or offered for sale/gifting.
Government Response
Rejected
HM Government
Rejected
The decision as to what happens to equipment when it reaches its Out of Service date sits with the relevant Front-Line Commands. Invariably this is because we are replacing the capability with a modern more capable system that is more economic to support. A range of options will be fully considered for each equipment type, including storage against future contingency, sale or gifting to Allies to help with collective Defence. One of the key factors in the decision-making process is obsolescence: much of the equipment which reaches its Out of Service Date is by definition old and consequently unsupportable through a lack of spares inventory, its material condition and/or excessively priced overhaul costs. Often, long-term storage is not a viable option as not only can this be extremely costly (even with a reduced maintenance schedule) but it is highly likely that the maintenance support and spares would not be available in the future. It would also not be possible to maintain a force of suitably qualified individuals to either maintain or, more importantly, operate the equipment into the future. In all cases, the decision is considered in the round, taking a number of factors into account, including long term financial value to the taxpayer as well as short term affordability. For the disposal of all ships, Navy Command has established a formal Disposal and Exports Programme to manage the effective disposal of assets in accordance with the Defence Plan, ensuring Value for Money and the most appropriate outcome for the present day and future Defence. Aircraft are generally retired when it is no longer cost effective to maintain them, due to either significant obsolescence or regulatory compliance costs, or the amount of work which would be required to extend structural airframe life (which may indeed not be possible). Frequently, ongoing maintenance of the remaining fleet is dependent upon the ‘reduce to produce’ premise, wherein components are removed from retired aircraft to maintain the operational fleet: this is the case for both Hawk and Typhoon Tranche 1. For land vehicles of all kinds, the Department has robust fleet management policies and procedures in place, including for the management of vehicle disposals. The relevant Service will engage with the Defence Equipment Sales Authority, on the potential disposal opportunities, to determine the most appropriate course of action. Again, a range of factors are considered when decisions are made whether to dispose of vehicles, including operational implications, costs of repair and the availability of spares. A vehicle will be considered for disposal if it is surplus to defence requirements if the estimated costs of repair exceed the authorised repair limit or if the vehicle has reached its end of life.