The Commons defence committee has uncovered continuing major problems with the procurement of military equipment.

In a new report released on Wednesday the MPs found that the Ministry of Defence suffered from cost over-runs of £3.1 billion in 2002/03 and average delays on major projects of 18 months.

They called on the department to get a tighter grip on its purchasing practices by clamping down on "endemic" and "systemic" problems in its "woeful" Defence Procurement Agency (DPA).

The committee concluded that the "smart acquisition" policy introduced by Labour in 1998 has not been a success, despite good intentions.

The report predicted that problems will persist while cultural shifts are made within the civil service, putting pressure on other areas of the already overstretched defence budget.

A "fear culture" exists in the DPA, the report found, while poor internal review practices have led to shortcomings failing to be addressed.

Major projects such as the Eurofighter, the Joint Strike Fighter and the Future Rapid Effects System are all suffering from delays with the committee lacking confidence that the armed forces will get the equipment they need, when they need it.

Chairman Bruce George said political problems were also having an impact on the important British defence industry.

"Our armed forces are having to deal with many new security challenges in conditions where they are already overstretched and under-staffed. The last thing they need is to worry about is whether or not critical equipment will turn up on time or at all," he said.

"Our report has highlighted some quite staggering problems in the way that the procurement of vital defence equipment has been handled.

"Only now is the Defence Procurement Agency making concerted efforts to identify best practice in procurement and contracting. We remain to be convinced that these actions will have a positive impact and it is imperative that the situation is monitored closely.

"It is also clear that delays in MoD decision making have resulted in uncertainty and expense for defence companies. This cannot carry on. British firms need to know that a level playing field exists if they are to be able to compete with defence companies in other countries."