Last year, an investigation by the National Audit Office (NAO) discovered that the Royal Navy is being forced to strip parts from its vessels in order to maintain its fleet of ships and submarines.
The practice has increased 49% from 2012 to 2017 and the spending watchdog said budget cuts in the last two years could be the cause.
Rear Admiral Richard Stokes defended the procedure of moving parts across the Royal Navy’s fleet, he described it as a "valid method for protecting the programme of the highest priority operating units".
The NAO report also describes the practice as an effective way to keep vessels operational during high-intensity operations.
However, it can also cause increased costs - in 50% of cases involving Type-23 frigates the cost of moving the part between ships was equal to or greater than the value of the part in question.
Mr Lovegrove told the committee that if spares were to be held in stock, it would require a further £920 million of "capital tied up” which “doesn't make sense".