The Yes Minister Manoeuvres Used by MoD Civil Servants to Force Drayson Out

The full story behind the decision of Lord Drayson to quit as defence equipment and support minister can finally be told, having been covered up to prevent further embarrassment to Gordon Brown. A number of defence and industry sources said last week that Drayson had stormed out of the MoD after a series of rows with its most senior civil servant over his attempts to revamp defence procurement. His departure followed a testy meeting with Des Browne, defence secretary, who refused to back him in the rows with Bill Jeffrey, the MoD’s permanent under-secretary. The truth behind his subsequent departure contains all the elements of a classic episode of the BBC television series Yes Minister.

After Des Browne refused to back him in his battle with Jeffrey, Drayson stormed across Whitehall and had what one source described as a heated exchange with the prime minister. He was eventually persuaded not to walk out and to say he was resigning because of a "unique opportunity" to become a racing driver in the US. But it was all spin - something Brown came to power promising not to use – and designed to save the prime minister the public embarrassment of losing a high-profile minister. "Drayson came close to doing a Heseltine," one well-placed source said, in a reference to Michael Heseltine’s 1986 resignation from the Thatcher cabinet. "They came up with the silly racing story to cover it up."

The successful businessman, and controversial donor to the Labour Party, was appointed as procurement minister in May 2005 with a brief to revamp the much criticised MoD procurement process. Within months he had published the first part of a new Defence Industrial Strategy (DIS) putting the emphasis on better liaison with defence manufacturers. It was also designed to allow the MoD to sort out its finances by better planning procurement projects so that expenditure was evenly spread out. DIS1 as it became known was well received within the defence companies as a new way forward in their often difficult relationship with the MoD. But the second part of the strategy – which would make defence spending more predictable – was going to cost a good deal of money and so was put off until the end of this year.

Meanwhile, Drayson set about reorganising the defence procurement and logistics systems in the wake of the Iraq War debacle. The failure to order equipment like nuclear, biological and chemical filters for the army’s tanks and body armour and boots for the troops themselves demanded solutions and Drayson set about finding them. He merged the Defence Procurement Agency and the Defence Logistics Organisation into a single ostensibly better coordinated organisation, the Defence Equipment and Supply Organisation. The move was well received by both the military, who saw Drayson’s can-do attitude as similar to their own, and the defence industry. But it was much less well received among senior and middle-ranking civil servants who saw jobs that would carry them through to their pensions disappearing. Drayson was promoted to defence and equipment support minister in March this year to give him more clout. He would soon need it.

As part of his determination to reform procurement, Drayson lighted on the army’s attempts to buy a new family of armoured personnel carriers. The vehicles, known as the Future Rapid Effects System (FRES), had been repeatedly pushed to one side for lack of funding and to allow the navy to get more ships and the RAF its expensive Typhoon aircraft. Drayson made it clear that he was determined to have the new vehicle operating on the frontline by 2012. He formed an alliance with Chief of General Staff Gen Sir Richard Dannatt, who lambasted the failure to procure the vehicle during a Royal United Services Institutue conference in June. A day later, Drayson was surprisingly able to announce a shortlist of three vehicles – General Dynamics UK’s Piranha 5; the French Vehicule Blinde de Combat d’Infantrie (VBCI) built by Nexter and the German-Dutch Boxer.

Within weeks, the rival vehicles underwent "trials of truth" at Bovington ranges in Dorset. The US/British Piranha 5 and the French Nexter VBCI emerged as the leading contenders. When the French offered to have their vehicle in service even earlier than the 2012 deadline, Drayson decided to push it though without further competition. That of course went completely against the ethos of the MoD civil servants. It was fine for the French vehicle and even a German vehicle to go up against a British-built vehicle in the competition. But at the end of the day, the British-built vehicle – and British jobs – had to win. The MoD team responsible for picking the winner wanted Piranha. They complained to Jeffrey who told Drayson in very firm terms that it was "No minister" and the two had a series of rows over the issue.

Drayson’s anger was not helped by the Prime Minister’s decision to axe the Defence Exports Services Organisation, which helps UK arms firms sell their products abroad, without consulting him. He was also heading for confrontation with Des Browne, defence secretary, over his cherished Defence Industrial Strategy. The second and crucial part of the process DIS2 was due to be published on December 13. But with a £2bn black hole emerging in the defence budget there was no chance of it happening.

The issues came to a head on Thursday November 1, Drayson went to Des Browne and insisted he back him in the row over the army’s new vehicle. When Browne sided with Jeffrey a furious Drayson stormed across Whitehall to see the prime minister and threaten to resign unless he was allowed to make his own decisions. "He was furious that he could not get his own way," one well-informed source said. "He came close to doing a Heseltine and storming out right then." Heseltine, the then defence secretary, walked out of a cabinet meeting in fury at Mrs Thatcher’s backing of a US takeover of Westland against his own choice of a merger with BAE (then British Aerospace) and the Italian company Agusta. But Jeffrey had already prepared the ground, briefing his long-term friend and ally Gus O’Donnell, the cabinet secretary.

Brown told Drayson to calm down and come back the next day, but while the meeting on the Friday was less tempestuous, it was described by one ally of the millionaire businessman as "distinctly frosty". Over the weekend, both sides considered their options. Drayson decided that there was no point in doing a job that meant long hours away from his wife and family if he was not allowed to do it properly.

The government’s spin doctors meanwhile were trying to find an exit strategy that would prevent the resignation from turning into yet more disastrous publicity for the prime minister. When Drayson came back and said that if he was not allowed to do the job he was brought in to do he would rather go off racing, they grabbed at it as the way out. They issued just one part of Drayson’s resignation letter in which he spoke of the "unique opportunity" to race in the US, while briefing the media that he had always been a bit of a playboy. As if to ram home the point, they issued a photograph of him which showed him grinning and wearing RAF flying gear alongside a Merlin helicopter.

Drayson declined the opportunity to comment on the new account of his departure last week. But in a previous interview with the Sunday Times, he said: "There is nothing extra behind this. I have a real passion for motor racing, and I have a fantastic opportunity at this stage in my life. I've got to grab it with both hands." He believed ministers who quit should then keep quiet and was confident his Defence Industrial Strategy was on course. "I'm sure that will continue," he said. "That's not something that is down to one person." Last week, his replacement Baroness Taylor told MPs that the second crucial second part of his Defence Industrial Strategy would not now be published next month and she was unable to say when it would. This wasn't how it was all supposed to end.

Comments

[DaveH]

quote
But it was much less well received among senior and middle-ranking civil servants who saw jobs that would carry them through to their pensions disappearing.

Manning control in Whitehall?.......never,LOL

[The 3rd Column]

What could be Drayson's motive for not spilling the beans right then and there, i.e., 'Drayson declined the opportunity to comment on the new account of his departure last week'?

Mick says: He was very clear in a previous interview with us that he did not believe in ministers quitting and then complaining. He is a New Labour supporter who pumped a sizeable sum of money into the party. The last thing he wants to do is undermine his investment.

[William29]

On the occasion of a minor cock up in NI 1977, I suggested to the KK (company commander) that it was as much my fault. I well remember the look of disdain on his face he said with anger that "a gentleman never blames his subordinates for his own shortcomings"! I wonder as the board of inquiry is soon publishing its findings how many "gentlemen" of the Royal Air Force hold the same views on conduct.