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I echo the remark made by the shadow Minister, the hon. Member for Merthyr Tydfil and Rhymney (Gerald Jones), that the debate has been very consensual. Looking around, I can see that no one in the Chamber would disagree that the first duty of Government is the security of the nation, and this Government are absolutely committed to maintaining a strong defence through well equipped and highly trained armed forces.
The UK’s armed forces are rightly renowned and respected around the world. People from every corner of our country and our Union share pride in what the armed forces achieve. Wales’ contribution to our defence and to the ongoing success of our armed forces is immense. I am delighted that, for my first outing as a Defence Minister, I have the opportunity to reply to this debate, and I congratulate my hon. Friend the Member for Brecon and Radnorshire (Fay Jones) on securing it and on her excellent speech. I will respond by drawing out three themes: Wales’ contribution to capability, to defence support, and to recruitment, which is the lifeblood of our armed forces, as many hon. Members have mentioned.
In determining the location of our armed forces, our priority is to have units that not only fight together, but live together and are based close to their training areas, generating centres of military specialisation, which gives the UK the best possible operational capability. Currently, there are 2,200 Regular Army forces personnel based in Wales, many at Brecon’s infantry battle school and associated training facilities and the headquarters of 160th Brigade. I reiterate to my hon. Friend that 160th Brigade headquarters will remain in Wales. My Department is undertaking an assessment study to determine the precise location. She is lobbying hard for the Brecon area, and we hear her loud and clear. We are sympathetic, and I look forward to ongoing discussions.
On balance, the defence estate review is neutral for Wales, as my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) mentioned and as was picked up by other Members including the shadow spokesman, the hon. Member for Merthyr Tydfil and Rhymney. Some planned defence closures are envisaged, including Cawdor barracks—I know I will hear a lot more about that from my right hon. Friend. Questions tomorrow will be interesting, although I would not say that I am anticipating them eagerly. We plan to relocate an infantry unit to Wales, however, and have identified our preferred location as MOD St Athan, on which there will be more to come.
In the air, RAF Valley is our Air Force’s key Welsh location. All new fighter pilots pass through RAF Valley’s fast jet course before reaching their frontline squadrons. Its runway was restored as part of a £20 million refurbishment.
May I press the Minister to revisit the estate strategy? Please will he ask his Department to produce a paper specifically looking at whether one of our Welsh regiments could be based in Brecon? This afternoon, we have heard cross-party support for that idea. It would be great if the Ministry of Defence and the Minister on his first outing—he is doing brilliantly—supported that consensus.
At the risk of labouring the point, as the hon. Member for Blaenau Gwent (Nick Smith) mentioned, there is cross-party unanimity on that. The Minister would therefore not only ensure that a Welsh regiment was based in Wales, but succeed in getting the support of all parties represented Wales. He would also achieve the rare feat for a Minister of fulfilling a recommendation of a Welsh Affairs Committee report on the issue.
I thank both hon. Gentlemen for their honeyed words and kind remarks. I am afraid that I will not respond with an answer to satisfy them fully. We have made clear our preference for the location of the extra infantry unit at St Athan. We recognise the case for Brecon as the ongoing location in some form—in that area—for the 160th Brigade headquarters. I cannot fully satisfy the hon. Gentlemen, but defence is always an area in which tough decisions have to be taken, and we will not always make the ones that either of them like, but we are where we are. There is a decision, in preference, for St Athan as the location for the new military unit.
We have discussed the RAF, so moving on to the Royal Navy, the £11 million Royal Naval Reserve base in Cardiff will be completed in 2020. I see that the hon. Member for Cardiff South and Penarth (Stephen Doughty) is pleased with that, and he referred to it in his speech.
In addition to the physical presence of thousands of armed forces personnel, vital elements of our military equipment capability are manufactured and maintained in Wales. For example, the Army’s next generation of Ajax armoured fighting vehicles are made at General Dynamics UK in Merthyr Tydfil and Oakdale. The RAF’s Shadow aircraft will be supported by Raytheon in Broughton for the next decade under a £250 million contract. Furthermore, MOD Sealand has been designated as the global F-35 component repair and maintenance hub. Sealand is also the home to the Defence Electronics and Components Agency which, as mentioned in the debate, makes north Wales a national centre of excellence in this field.
Not only does Wales supply invaluable equipment to the armed forces, but it generates prosperity and jobs. The F-35 programme alone will generate more than £2 billion in revenue over the next 30 years. I was delighted that my Department’s procurement spend in Wales increased by 11% in the last financial year to £1.08 billion—the highest percentage increase in all the UK’s regions and countries. That investment supports more than 7,500 jobs directly and thousands more across wider supply chains, including 1,150 highly skilled private sector jobs at RAF Valley, making it the second biggest employer on Anglesey. There is more to come, with 200 jobs on Shadow at Raytheon’s intelligence and surveillance hub, additional Qioptiq personnel at St Asaph, and the new Cardiff Royal Naval Reserve centre supporting about 300 jobs locally.
Defence equipment investment supports vital roles across Wales, but all in the Chamber would agree that the most important jobs are those undertaken by the men and women who join our armed forces. Traditionally, Wales has always been a strong recruiting area for our services, especially our land forces, and that proud tradition continues. I have some reassurance for my right hon. Friend the Member for Preseli Pembrokeshire. Capita was discussed during the debate but, over the past year, it has been reinvigorated and there has been a far better performance on the contract. I am delighted that 77,000 people applied to be regular soldiers alone in the course of the past year, which is a 33% increase. Change needed to be made, and we have made changes, so that contract is performing far better.
The hon. Member for Cardiff South and Penarth referred to the need to have diversity, and I could not agree more. It is absolutely the Army’s intention to ensure that the armed forces reflect the country that they serve. If the hon. Gentleman looks at the most recent recruiting campaign, he will see that that is absolutely front and centre to how we perform.
I am afraid I cannot be precise about the numbers of recruits from Wales as we do not maintain regional recruitment figures, but given the strengths of the connections of the Welsh regiments—the Welsh Guards, the Royal Welsh and the Queen’s Dragoon Guards—I am absolutely certain they will get more than their fair share.
I wish to say so much more in the debate, but I am being tugged down to allow my hon. Friend the Member for Brecon and Radnorshire to respond. I hope on other occasions we will be able to talk about veterans and service families accommodation. I would be delighted to speak to the hon. Member for Islwyn (Chris Evans) in particular on that issue. I apologise that I have not been able to respond to more of the points made in the debate, but I wish to allow my hon. Friend an opportunity to respond.