(3 years, 8 months ago)
Lords ChamberThe MoD routinely evaluates and reviews all major contracts as they near their end dates. It conducted a review of the governance model in place for the management of AWE plc, and it was following that review that the MoD decided that AWE should revert to a direct government-ownership model. We believe that will simplify and further strengthen the relationship between the MoD and AWE.
My Lords, will the Minister confirm that the Government’s defence priorities include cyber and space projects, and that they continue to recognise, as they said in the 2018 defence review, that security challenges involve non-state actors, migration, pandemics and environmental pressures? How will the Trident programme fit their own priorities or help to tackle any of those threats?
I agree with the noble Baroness’s assessment of the threats of cyber. That is why the recent defence financial settlement reflects the importance that the Government attach to both cyber and space activity. The nuclear deterrent, which was overwhelmingly mandated by Parliament in 2016, is a very important but separate part of our capability. It is there to deter, and it has proved to be an effective deterrent.
(3 years, 10 months ago)
Lords ChamberI reassure the noble Lord that it would be a very curious defence capability that did not have a maritime capacity. As we look to the challenges of the global world in the years to come, it seems that a maritime capacity will be an essential part of our capability. The Government are aware of the importance of the UK’s maritime industries. As the noble Lord will be aware, the Prime Minister appointed the Secretary of State for Defence to be the shipbuilding tsar for this very reason. The challenges which the noble Lord articulated are recognised.
My Lords, on the possibility of awarding this contract within the UK, hopes have been raised and dashed countless times over the past few years. Does the Minister agree that the UK’s post-Covid industrial recovery strategy must weigh up the benefits of enabling some 6,500 skilled jobs in the shipbuilding industry against the long-term damage to people, local industries and the wider economy of losing those jobs? Will the Government support retention of shipbuilding by awarding these contracts within the UK?
Like the noble Baroness, coming from Scotland, I am well aware of the significance of shipbuilding to Scotland, not least to our communities on the Clyde. The process has been put in place to proceed with the three new fleet solid support ships. Making them exempt from the EU procurement regulations will put us in a position to make informed decisions as to the approach that represents the best chance of success while realising our ambition to bring shipbuilding home.
(5 years, 9 months ago)
Lords ChamberTo ask Her Majesty’s Government what assessment they have made of the impact that the process for awarding contracts for building complex warships will have on shipbuilding in the United Kingdom.
My Lords, as set out in the national shipbuilding strategy, the Type 31e programme is the pathfinder for a new streamlined competitive procurement process which allows the Ministry of Defence to work collaboratively with industry to deliver warships to meet the Royal Navy’s needs. The Type 31e procurement is still under way. However, industry has welcomed the approach, and initial engagement indicates a healthy interest throughout the supply chain.
I thank the Minister for his Answer, but there is a strong case for awarding contracts for all Royal Navy ships, including those serving under the Royal Fleet Auxiliary, to UK shipyards. The Government are making an unnecessary distinction by insisting on putting RFA ships to international tender. Does the Minister agree that awarding these contracts to UK shipbuilders would provide certainty, and enable shipyards to grow in size and capacity, train more apprentices, help sustain their supply chains and, importantly, keep prices down? Does he also agree that this would be one of the MoD’s objectives: to contribute to UK prosperity?
My Lords, I absolutely share the noble Baroness’s ambition for the prosperity of the UK shipbuilding sector. Future warship procurement will be restricted to UK-wide competition for reasons of national security. However, we think it right for other naval ships to be subject to open competition. This is not just because of the rules of the EU treaty. Of course, we hope that UK shipyards will be able to compete for those contracts, but they will win them only if they are internationally competitive. It is that competitiveness that will ultimately secure their prosperity, not only as suppliers in the UK context, but as potential exporters in the global marketplace.