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•VOLUME44•ISSUE1•3JANUARY2007
Acutabove?
ICGSmovestoreinforcefaithinDeepwater
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UKconsidersradicaldefence
UKconsidersradicaldefence
spendingcuts–
p4
spendingcuts–p4
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IranreplenishesHizbullah’s
IranreplenishesHizbullah’s
armsinventory–
p17
armsinventory–p17
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Onthecover
ThedeliveryofthefirstDeepwater
asset,anHC-144maritimepatrol
aircraft,totheUSCoastGuard
comesamidnewcontroversyover
thedesignoftheNationalSecurity
Cutter
(
seepage8)
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•VOL44•ISSUENO1•3January2007
Headlines
4
UKconsidersradicalcutstoclawbackbudget
5
USAFseeksnewrefuellersby2011
IEDattacksupinKandahar,downinKabul
6
UKlaunchescontestforHarriertargetingpods
Onlinethisweek
Interview
34
JDW
talkstoCees
vanDuyvendijk,
chairman,TNO
CouncilforDefence
Research
PVoorham;1165453
jdw.janes.com
Francetowithdrawspecialforcesfrom
Afghanistan
7
DebriefingteamsbrandIDFdoctrine
‘completelywrong’
Israelsetforrecorddefencespendin2007
17
IranreplenishesHizbullah’sarmsinventory
ThefirstAustrianEurofighterTyphoonmultirole
fighteraircraftwasrolledouton8December
attheEADSMilitaryAirSystemsfacilityat
Manching,Germany
TheAmericas
8
Deepwaterfacesdesignissuesonflagship
vessel
OptimismasMQ-8Bcompletesfirstflight
9
USMCrethinksscoutsniperroles,missions
Business
18
USaerospaceindustryseeksIndian
partnerships
19
DraysonstallsCVFMainGateuntilindustry
consolidationoccurs
EurofighterGmbH;1165467
"
LockheedMartinandNorthropGrummanwin
ISRcontract
Inordertoimprovethetimelinessand
relevanceofJDWForcesUpdatearticles,from
thisissueonwardseachForcesUpdatesection
willconsistofamixofallsubjectareas,
insteadofdedicatinganyparticularweekto
solelyonesubject.
CommsglitchkeepsRQ-4satBealeAFB
grounded
10
JointventuresnaresUSArmylinguistcontract
Colombialookstoboostitsfighterfleet
Opinion
20
Generatingtherightdecisionsindefence
Analysis
21
RampingupGlonass
Europe
11
SOSIcontendersforFRESlineup
12
ThaleswinsDanishAAWsystemcontract
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Briefing:HomelandSecurity
24
Containingrisk:
Totakeadvantageof
opportunitiesinthehomelandsecuritysector,
industrymustgettogripswiththesector’s
uniquerequirements
HungaryordersSofarunmannedaerial
systems
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AsiaPacific
13
RoKseekstobuilditsownmissiledefence
system
ForcesUpdate
30
Dutchstruggletorecruitashelocommand
forms
31
GermanArmybuysmoreWiesel2s
32
Denmarkbuys29DUROIIIPambulances
Australiabeginsdrivefornewmilitaryrecruits
14
USproposesRoKtakesleadinUNCmissions
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MiddleEast/Africa
15
PolanddeliversBTR-80UPtoIraq
Iranwillbeabletobuildanuclearweaponin
2009,saysMossadchief
16
UShand-overmarksstartofmodernisation
inIraq
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Janes
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4
•
3January2007
•
JDW
•
jdw.janes.com
HEADLINES
Staff
Editor
PeterFelstead
DeputyEditorandMiddleEastBureauChief
RobinHughes
FeaturesEditor
TonySkinner
Asia-PacificBureauChief
RobertKarniol
WashingtonDCBureau:
AmericasBureauChief
StephenTrimble
Reporters
CaitlinHarrington,
NathanHodge
UKconsidersradicalcuts
toclawbackbudget
TIMRIPLEY
JDWCorrespondent
London
AdministrativeAssistant
MarianChiles
SeniorSubEditor
JamesAdlam
SubEditors
KarenDeans,SusieKornell
●
ReportssuggestthattheUKis
planningaradical‘re-balancing’
ofitsspendingplans
●
TheMinistryofDefencehashad
tofindeconomiesofGBP150m
Jane’sAviationDeskEditor
DamianKemp
AerospaceConsultant
NickCook
AirReporter
DonnaRichardson
Jane’sLandDeskEditor
MarkDaly
Jane’sLandForcesContributingEditor
ChristopherFFoss
LandReporter
AndrewWhite
KMinistryofDefence
(MoD)officialshave
drawnupapackage
ofeconomymeasures
tobringtheirdepart-
mentsbudgetbacktospending
limitssetbytheUKgovernments
TreasuryDepartmentin2004.
TheMoDisintheprocessofpre-
paringitsnextspendingbidtothe
Treasuryanddetailsofthebudget
proposalsemergedintheUKmedia
inDecember2006suggestingthata
radicalre-balancingofitsspend-
ingplansandprogrammesisbeing
prepared.Continuingcostover-
runsinprocurementandfailure
toachieveexpectedsavingsfrom
thesaleofassets,redundancies
andre-organisationsarebehind
theexercise,accordingtoministry
officialsinvolvedintheprocess.
Earlyin2007UKDefenceSec-
retaryDesBrowneisexpectedto
approvehisministrysbidintothe
TreasurysComprehensiveSpend-
ingReview(CSR)fortheperiod
2009-12,whichsetstargetsforall
UKgovernmentspending.
Browneandhisministerialteam
arealsoexpectedtoagreeafurther
packageofeconomiestoensurehis
ministryremainswithinthestrict
financialtargetssetinthe2005-08
CSR.
Defenceministryinsidershave
told
Janes
thatstrictinterpretation
oftheCSR2005-08spendinglim-
itsandtightnegotiationsinthenext
CSRroundareputtingsignificant
pressureonitsspendingplans.
Janes
understandsthatinthe
currentfinancialyeartheministry
hashadtofindeconomiesofaround
GBP150million(USD295mil-
lion)tobringitbackwithinbudget.
Internalministrydocumentsleaked
Jane’sNavalDeskEditor
NickBrown
Jane’sNavalConsultant
RichardScott
NavalReporter
DeniseHammick
Jane’sDefenceIndustryEditor
GuyAnderson
IndustryReporters
KeriSmith
JonGrevatt
BenVogel
Jane’sBusinessConsultant
JamesSmith
Astute-classnuclearsubmarine
procurementcostover-runsofGBP164millionhave
contributedtotheUK’sbudgetproblemsin2006alone
BAESystems;1148581
tothemediainAugust2006sug-
gestedthatthisincludesGBP44
milliontobesavedbycutting
BritishArmyexercisesandammu-
nitionpurchases.
By2008afurtherGBP1billion
hastobesavedtoensuretheMoD
meetsitsCSRtargetofannual
spendingofGBP33.4billion.In
2004theMoDannouncedapack-
ageofefficiencysavingsworth
GBP2.8billionbutthisiscurrently
projectedtoonlysavejustunder
GBP2billionbecausethereturn
fromthesalesofassets,redundan-
ciesandre-organisationshave
failedtomeetexpectations.
Ambitiousplanstocomputerise
militarypersonneladministration
hasparticularlyfailedtodeliverthe
expectedsavings.Procurementcost
overrunshavecontinuedwiththe
Astutenuclearsubmarineproject
risingbyGBP164millionin2006
alone,accordingtotheUKNational
AuditOffice.
Amenuofproposedcutbacks
havebeendrawnupbyministry
officialstosavemoneyonprojects
notdirectlyassociatedwithongoing
operationsinIraqandAfghanistan.
ThisincludeswithdrawingRoyal
Navydestroyersandfrigatesfrom
frontlineservicetosaveGBP150
millionandsignificantscalingback
ofRAFflyinghoursforUK-based
trainingandoperations.
TheMoDsspendingprob-
lemsdonotlookliketheywillbe
resolvedbythesetworoundsof
economiesandleakedministry
documentssuggestthatitfacesan
GBP868millionover-commitment
intheperiod2009-12.Economies
beingproposedinthenextCSR
roundincludethecessationof
parachutetrainingbytheBritish
Armysairborneforces.
AnMoDspokeswomansaidit
wasnotpolicytoprovidedetails
tothepublicandmediaofinternal
governmentbudgetdiscusssions.
“WhatwecansayisthattheMoD
doesnotexpecttooverspendinthe
currentfinancialyearand,aswe
donotyethaveabudgetsetforthe
FinancialYear2007-08,itisbizarre
toclaimapredictedoverspend,”
shesaid.
“Thefuturedefencebudget
willbesetintheComprehensive
SpendingReviewnextyearandwe
arecurrentlydevelopingplansto
ensurethatnextyearsprogramme
isaffordableandallocatedinline
withdefencepriorities.”
■
ProductionController
MelanieAris
e-Publishing
BichNguyen
GroupManagingDirector
AlfredRolington
Correspondents
TheAmericas:
ScottGourley;JoséHiguera;SharonHobson;
AndrewKoch;JoshuaKucera;Jeremy
McDermott;PedroPauloRezende;CesarCruz
Tantalean
Asia/Pacific:
IqbalAthas;RahulBedi;JosephBermudez;
MacWilliamBishop;FarhanBokhari;
IanBostock;YihongChang;AnthonyDavis;
ShinichiKiyotani;PhillipMckinnon
Europe:
JohnBerg;PiotrButowski;ThomasDodd;
TimGlogan;GrzegorzHoldanowicz;
DavidIng;HenryIvanov;JiriKominek;
JACLewis;GeorgMader;NikolaiNovichkov;
TimRipley;LaleSariibrahimoglu;RaduTudor;
TheodoreValmas;PaoloValpolini
MiddleEast/Africa:
SegunAdeyemi;AlonBen-David;
NicholasBlanford;Helmoed-RömerHeitman,
MohammedNajib,LeslieNeuhaus
NATOandEUAffairs:
NicholasFiorenza
UN:
ThalifDeen
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jdw@janes.com
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