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ianstone
08-13-2010, 06:40 PM
Top officers face axe to fill £37bn MoD black hole as Fox reopens Trident row



By Mail Online Reporter (http://www.dailymail.co.uk/home/search.html?s=y&authornamef=Mail+Online+Reporter)
Last updated at 2:51 PM on 13th August 2010


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Senior officers and civilian staff could be cut as part of a radical shake-up to make the military 'leaner and less centralised'.
The Ministry of Defence will be restructured with more power handed to top brass to run their own services.
Defence Secretary Liam Fox refused to be drawn on how many jobs at the MoD will be slashed but admitted the shake-up would not be 'painless'.
He insisted the needs of British forces on operations had to take priority over spending on support staff in Westminster.
And Mr Fox ruled out any of the three forces merging together, but kept open the possibility the hierarchy will change with the RAF downgraded.
http://i.dailymail.co.uk/i/pix/2010/08/13/article-1302711-0AC8ED4D000005DC-690_468x290.jpg Reform: Defence Secretary Liam Fox (left) and Vice Admiral Rory McLean talk about the Ministry of Defence budget today

The Defence Secretary also raised the stakes in his battle with the Treasury as he made public his irritation over the future of Trident.

Dr Fox is trying to stop Chancellor George Osborne including the £20 billion cost of the nuclear deterrent in the Ministry of Defence's overall budget.

In India last month, Mr Osborne made clear the MoD would have to foot the bill, rather than leaving it to the general Treasury reserve. Today, Dr Fox hit back, even citing the last Labour regime's role in renewing Trident.

'Did the previous government choose the Trident replacement because it was the most expensive system, the most inefficient system? No. They chose it because it was the most efficient, the most cost effective,' he said.

'Which is why that is the best programme to take forward. In the long term, how will it be paid for? ... ultimately as it has been directly via the defence budget. How that budget is funded is a conversation that is constantly ongoing with the Treasury.'

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Speaking at a Royal United Services Institute event, Dr Fox said: 'Ultimately all our defence capabilities have to be paid for. Which bits are paid, over what timescale, is part of the discussions we are having, and I'm not going to entertain them in public. I have enough time entertaining them in private.'
Dr Fox repeatedly cited Labour's 'appalling legacy' and blamed the savage cuts on the previous government's profligacy while in office.

He said the 'ghastly truth' was that Labour's financial mismanagement had left a £37billion black hole in the MoD budget, making deep cuts unavoidable.
Lengths of soldiers' tours in war zones and the intervals between deployment will also be reviewed to improve efficiency.

'We need to review all our current practices to ensure that we are using our greatest asset - our people - the best of our ability,' Dr Fox said.

He added: 'We will also consider whether the current senior rank structure across the services is appropriate for the post-SDSR (strategic defence and security review) world. We cannot demand efficiency from the lower ranks while exempting those at the top.'

http://i.dailymail.co.uk/i/pix/2010/08/13/article-1302711-0AC93902000005DC-690_468x286.jpg Cuts: David Cameron addresses Officer Cadets during their passing out ceremony at The Royal Military Academy in Sandhurst today


He set out plans to reshape the MoD into three pillars - Policy and Strategy, the Armed Forces, and Procurement and Estates.

A Defence Reform Unit headed by Lord Levene will guide the 'hard-thinking' on the changes, complementing the ongoing strategic defence and security review.

Dr Fox said: 'This Government will not shirk our responsibility, however had the task may be... It will be a root and branch reform. I don't pretend that it will be painless.'

The SDSR is looking at all options as it assesses Britain's future defence needs, apart from the question of whether to replace the Trident nuclear deterrent, which is already a Government commitment.

Chancellor George Osborne made it clear last month that the full £20billion cost of renewing Trident must be paid for out of the defence budget. Previously it was funded directly by the Treasury.

Dr Fox indicated that Britain's Trident fleet could be reduced from four to three nuclear submarines after what he described as 'the absolute mother of horrors of a spending review'.

Today, it was clear Trident is still a major bone of contention. Dr Fox said: 'How our budget is funded to take account of that [Trident] is a conversation constantly ongoing with the Treasury'.


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