The Parliamentary Under-Secretary of State for Defence (Mr Andrew Robathan)
I congratulate the hon. Member for Hayes and Harlington (John McDonnell) on securing this Adjournment debate on the very important issue of the future of the Royal Fleet Auxiliary, and on providing me with an opportunity to speak on the issue, albeit rather more briefly than I had expected. I understand his relationship with the National Union of Rail, Maritime and Transport Workers, and I applaud him for speaking up for the work force. I absolutely accept that that is right and proper. I will put a plug in for myself and mention that, when I first came into the House—in 1983, I think—I served on the Employment Select Committee, as it then was, and instigated and chaired an inquiry into employment in the merchant navy, which was then under serious pressure—as indeed it has been since.
I shall deal in a few moments with the review mentioned by the hon. Member for North Durham (Mr Jones). I say to everyone in the Chamber—there is a surprisingly large number of Members present for an Adjournment debate—that this is not the place from which we would have wished to start. I do not want to get into party political point scoring, but everyone understands that we are in a difficult financial and economic situation and that the Government cannot go on spending money that they do not have.
Mr Robathan
As I said a moment ago, no one would have wished to start from here, but we have to look at all options. Some programmes in the defence budget have already been cancelled—they have been announced—even though we have spent a lot of money on them. We did not wish to do so, but we had no further money to pour into them.
Let me speak briefly about the Royal Fleet Auxiliary. It was established in 1905, providing coaling ships to supply the Royal Navy’s network of bases around the world. It has continued to evolve into what we see today in the global reach that the RFA delivers for defence and the Royal Navy. Although its origins are the merchant navy, the RFA has developed in a specialised way to meet the Royal Navy’s requirements. It is linked to the Royal Navy by heritage, which has been mentioned, tasks, management, chain of command and ethos.
The commercial merchant navy has had a long history of working with the Royal Navy over many centuries and has had to fight and defend itself to develop commerce around the world. Defending itself against piracy, for instance, is not a new challenge. More recently, developments in warfare and warships, specialisation of commercial ships and their design limit the utility of commercial shipping to providing core support to military operations. While commercial shipping has little knowledge of warfare, over the past 30 years the RFA has developed to meet the specialised needs of 21st century warfare.
The RFA is the modern example of merchant shipping working and prepared to fight alongside the Royal Navy. It is the means by which the Navy operates globally. Equally exposed to the risk, it is a key enabler for worldwide reach of the UK’s armed forces. The RFA has essential qualities that make it different, as the hon. Member for Hayes and Harlington said, and that enable it to deliver operational quality effectively to the Ministry of Defence and the Navy, blending the commercial manning and ship management models into military operations. As a result of the versatility of the ships and the knowledge that the work force has accumulated over many years, the RFA has become a deliverer of operational capability as well as an enabler.
Oliver Colvile (Plymouth, Sutton and Devonport) (Con)
I congratulate the hon. Member for Hayes and Harlington (John McDonnell) on securing this debate. May I ask the Minister whether he would be willing to consider Plymouth as one of the homes of the port basing when he has to decide the location?
Mr Robathan
My parents-in-law live just outside Plymouth, which might make this a bit personal. We will consider and review everything, but I make no promises one way or the other to my hon. Friend.
The responsibilities of today’s RFA are far from commercial in nature, but wholly integral to the Royal Navy’s continued deployments and presence around the world. For instance, RFA ships currently operating east of Suez are part of the wider maritime security effort for stability in the region. RFA Cardigan Bay is in the northern Gulf and is the logistics hub supporting the training base for the Iraqi navy, defending its oil platforms. RFA Lyme Bay is the headquarters ship for allied mine counter-measure ships. Fort Victoria has a large team of Royal Marines, a number of boats and a Merlin helicopter and is working with HMS Northumberland on counter-piracy operations off the Somali coast. I suppose I cannot use visual aids, but there is a very good one on the front of the magazine, Navy News. I cannot show it, but it says “Busted” and it is about an RFA ship.
Without describing the RFA in too much detail, I turn to deal with the review, as I believe that it is the review and the strategic defence and security review that really concern the hon. Member for Hayes and Harlington. The RFA’s novel approach to delivering maritime operational support is not bought at the expense of its professionalism. I pay tribute, as did the hon. Gentleman, to the work of the RFA and the dedication of its staff.
The review of the RFA was initiated by the previous Administration. Some have suggested that it was driven by a decision to commercialise the RFA. It says here that I cannot speak for the intention of the last Administration, but I was glad to hear the hon. Member for North Durham explain that it was indeed driven by the Treasury.
Mr Robathan
I believe that candour is important in politics.
The Government are anxious to ensure that we deliver the capability that is required, and do so as efficiently as possible. To that end, we undertook an informal market exercise over the summer to test the assertion by some that industry could deliver the tasks currently conducted by the RFA more efficiently. I should emphasise that that was not a formal process, but was undertaken to ascertain the extent to which the question was worth addressing—as some, including my hon. Friend the Member for Canterbury (Mr Brazier), who questioned General Richards a few days ago, have suggested it is.
While there was strong commercial interest in contractorisation of the RFA and the industry would be prepared to operate the service at all threat levels, and although the study concluded that there might be scope for some market efficiency savings, no enthusiasm was expressed for either acquiring the existing RFA flotilla—in whole or in part—or assuming both the capital and operating risks. On that basis, therefore, there is insufficient evidence in favour of changing the current RFA business model, which has served us well for a number of years. However, we are keen to ensure that it delivers the required responsibilities as efficiently as possible.
The strategic defence and security review has involved some very difficult but unavoidable decisions for the armed forces, none of which has been made lightly. They will lead to changes in the size of the RFA that will reflect the changing size and shape of the Royal Navy. Final decisions have not yet been made, beyond the decommissioning of one Bay class amphibious support ship that was part of the SDSR announcement in October. My right hon. Friend the Secretary of State hopes to be in a position to announce the detailed force structure changes shortly, but the House will understand that some reductions in the size of the RFA will be involved. They will include personnel reductions, but, like the hon. Member for Hayes and Harlington, we hope that they can be made as much as possible through natural wastage. The hon. Gentleman made a good point about the age profile of the work force.
The Department is currently discussing with the departmental trades unions the need for early release activity to manage what will, I fear, be surplus RFA manpower. Until those consultations end, I cannot give the details of how members of the RFA might be affected, or the terms on which reductions will be managed.
My speech has been rather curtailed, but let me end by saying that although the challenges to be faced by the RFA after the SDSR and the value for money study are not insignificant, they are challenges that we believe the organisation has accepted head on, and they reflect an element of the difficult decisions that we have had to make throughout the SDSR. What I understand is known, in nautical terms, as the headmark for the Government remains Future Force 2020. We need to manage expectations and uncertainty—which we do not like—for both uniformed and civilian personnel, and that will be a key leadership challenge at all levels.
Let me again commend the Royal Fleet Auxiliary for the work that it does, and for the capabilities it brings to the naval service and defence now and into the foreseeable future. I am always happy to have a talk with the hon. Member for Hayes and Harlington, and look forward to doing so again.
Question put and agreed to.