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The Report of the Iraq Inquiry
602.  In June 2005, PJHQ advised Dr John Reid, the Defence Secretary, that
discussions were under way with the Treasury for an additional £38m to fund a
successor programme to Project OSIRIS.373 The Treasury had taken “a close interest”
in the bid and was keen to ensure that there was “no duplication” with funding allocated
to the FCO and DFID.
603.  Mr Des Browne, the Chief Secretary to the Treasury, wrote to Dr Reid on
23 August, approving £16m from the Reserve for the package of vehicles, infrastructure
and communications equipment that had been presented by MOD officials.374 Mr Browne
continued:
“Looking ahead, I hope that it will be possible for you to find other means of funding
the remaining elements [of the £38m programme] – either by negotiating with
Baghdad, for a larger share of what is available … or by encouraging our allies –
most of whom are spending far less than we are in maintaining forces on the ground
– to play a bigger role.”
604.  Dr Reid wrote to Mr Browne on 30 November, seeking a further £19.6m
(for 734 Iraqi Police Service vehicles and 11 ISF infrastructure projects).375 Dr Reid
advised that the MOD had secured funding from the US, Australia, Italy and Japan,
reducing the amount that the MOD needed to provide.
605.  Mr Browne replied on 20 December, approving an additional £19.6m from the
Reserve.376
606.  Section 12.1 describes the equipment provided to the ISF under Project OSIRIS.
Better Basra Plan, July 2006
607.  In June 2006, Mr Blair asked Mr Des Browne, the Defence Secretary from
May 2006, to focus on the situation in Basra.377
608.  Mr Browne sent Mr Blair an update on Basra, including details of the additional
projects needed to deliver a “better Basra”, on 4 July.378 Mr Browne reported that
departments had not yet found the £30.7m, “a relatively small sum given the strategic
importance of Basra”, required to fund the projects. Section 10.2 describes the
development of the Better Basra Plan.
373 Minute Scholefieldt to PS/Secretary of State [MOD], 15 June 2005, ‘Funding for a Further Programme
of Security Sector Reform and a Civil Effects Fund for MND(SE)’. The full request was for £58m, £20m of
which was for a Civil Effects Fund.
374 Letter Browne to Reid, 23 August 2005, ‘Iraq: Funding for Security Sector Reform and for a Civil Effects
Fund for MND(SE)’.
375 Letter Reid to Browne, 30 November 2005, [untitled].
376 Letter Browne to Reid, 20 December 2005, ‘Security Sector Reform’.
377 Minute Sheinwald to Banner, 8 June 2006, ‘Iraq and Afghanistan’.
378 Letter Browne to Blair, 4 July 2006, [untitled] attaching Paper, [undated], ‘Annex A – Background on
Additional Basra Work’.
544
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