Lord Wallace of Saltaire
My Lords, there are no plans to end the upgrade programme for service accommodation. However, from 2013, defence budget projections foresee a three-year pause in the upgrade of some 800 service family accommodation properties—SFA, in defence jargon—and some single living accommodation bed spaces, or SLA, each year. A further 3,000 upgraded bed spaces will be developed by 2014 and routine maintenance will continue to be fully funded. This decision reflects the substantial financial challenges we inherited from the MoD budget and our determination to protect front-line operations.
Lord Lee of Trafford
Is my noble friend not embarrassed that while the Government pledge support for the military covenant, of which a key element is housing, and while the Deputy Prime Minister yesterday pledged fast-tracking for 40 major infrastructure projects to help the construction industry, the MoD makes its unique contribution to joined-up government by going in totally the opposite direction and deferring essential maintenance expenditure? Apart from the obvious disadvantage to service personnel and their families, have we not learnt by now that deferring this sort of expenditure always costs a lot more in the long term?
Lord Wallace of Saltaire
My Lords, I am glad that the noble Lord has read the excellent speech that the Deputy Prime Minister gave yesterday morning, which I commend to the House. I am sure that many others will want to read it. We are continuing to work within the MoD budget to see whether we can generate additional funds for purposes such as these. We are being deliberately cautious in making forward projections, in contrast to the overoptimistic, even reckless, forward projections of the previous Administration in defence budgeting.
Lord Rosser
My Lords, when the Secretary of State for Defence made announcements in July and September on the welcome procurement of 14 Chinook helicopters, he did not give details of how they were being financed. Maybe we are now beginning to find out, as it now emerges that the housing improvement programme for military personnel, which was put in place by the previous Government, is being halted for three years. When did the Secretary of State publicly announce these specific cuts in the housing improvement programme, and through which channels? Also, what other cuts directly affecting the welfare of Armed Forces personnel are being made that have not been or will not be announced with quite the same vigour as, for example, the Chinook helicopter programme?
Lord Wallace of Saltaire
I should pay tribute to the previous Administration for their efforts to improve service accommodation. The current situation is that 96 per cent of service accommodation has now been upgraded. We are talking about some 2,000 service family houses and about the projection that, in two years’ time, there will be a pause in further upgrades. I am told by officials that the majority of the 2,000 houses that have not yet been upgraded will either have been disposed of or will have been upgraded by 2013.
Lord Craig of Radley
My Lords, does the Minister recall this quotation:
“Poor accommodation is an issue which is creating difficulties in retaining personnel in the armed forces”?
That was Dr Liam Fox as shadow Defence Secretary in 2007. Has the Defence Secretary changed his mind?
Lord Wallace of Saltaire
I assure the House that the Defence Secretary has not changed his mind, and I repeat: we should pay tribute to the previous Administration’s considerable efforts in recent years to upgrade service accommodation, which are continuing. A further 900 houses have already been upgraded since this Administration took office. We are very conscious of the importance of this programme. Perhaps I should also mention that alongside it, a substantial programme is to be undertaken in the next five years of service accommodation adjustment to accommodate troops who will be returning from Germany. That is not part of this pause.
Lord Palmer of Childs Hill
My Lords, as the Minister will be aware, at every stage of the Armed Forces Bill I have raised the dire state of houses for service personnel. I asked whether the Government could look at the use of housing associations in garrison towns to improve housing earlier than he has indicated. Will he confirm that they will urgently look at this in the light of recent revelations?
Lord Wallace of Saltaire
As I have indicated, the MoD recognises the importance of this to service welfare and is doing everything it can to ensure that the programme continues.
Lord Barnett
The Minister referred to what the Deputy Prime Minister said about increased expenditure, capital matters and infrastructure. Did the Deputy Prime Minister have the agreement of the Chancellor?
Lord Wallace of Saltaire
The DPM, as others do, speaks for the coalition Government as a whole.
Lord Dannatt
My Lords, does the Minister agree that, whereas one can count what constitutes as savings in the reduction in the housing expenditure programme, you cannot calculate in the same way the cost of the impact on morale? Is he able to tell the House, either now or later, what steps are being taken by the Ministry of Defence to engage with the service families associations to inform them about the changes to the upgrade of their accommodation, bearing in mind that many of the occupants of those houses will probably now be undergoing their second or third tour of duty in Afghanistan?
Lord Wallace of Saltaire
My Lords, I have asked that question of officials and I am assured that the service welfare charities and other bodies have been fully consulted on this.
Lord Touhig
My Lords, the defence estate represents 1 per cent of the land mass of Britain and is worth over £15 billion. Have the Government looked at disposing of some defence estate assets, a policy that I pursued when I was a Defence Minister? There is a lot of money there that could be used to improve the quality of accommodation for our service men and women.
Lord Wallace of Saltaire
I assure the noble Lord that the Government have looked at that, although I suspect that we will not follow the example of the Icelandic Government in considering selling large chunks of the defence estate to Chinese investors.