AUKUS

Baroness Smith of Newnham Excerpts

Thursday 16th September 2021 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, I thank the Minister for repeating the Statement today. I am sure I am not alone in welcoming the fact that the Statement was actually repeated, rather than our just jumping into questions on it. In thanking her for being here—I know she has made considerable efforts to do so—perhaps I may say that it is disappointing that the noble Baroness the Leader was not able to be present for the prime ministerial Statement. In fairness to her, she said that she could be here for the end of today’s business, but I think it is much better that we have it earlier on, and I am grateful to the Minister that we can do so.

I have said many times at this Dispatch Box that the first duty of any Government is the security and safety of its citizens at home and abroad. International co-operation and strategy is essential to achieving that. Given that many on these Benches, and indeed across your Lordships’ House, have long called for closer co-operation with our democratic allies, we all hope that this presents an opportunity to put that principle into practice. By sharing information, intelligence and resources, we should have the capacity to enhance security.

In their integrated review, the Government identified the region as being at the

“centre of intensifying geopolitical competition with multiple potential flashpoints”.

Assuming that that is the driver for this partnership, it would be helpful to hear from the Minister more detail about what this agreement means in practice and how it fits with—and what is—the Government’s broader strategy. There are also implications for at least two other countries outside this partnership: the French, following what is now their previous submarine procurement arrangements with the Australian Government; and for our relationship with China, as illustrated not least by the comments of its Foreign Ministry this morning.

The Government have now termed China as a systemic competitor and have recognised its military assertiveness, but they also want the UK to maintain a strong commercial relationship with the country. As we need to work together on key global issues, such as climate change, and with COP 26 just six weeks away, this could not be more important. It is clear to everyone that, without a diplomatic strategy and enhanced diplomatic skills, those goals will come into conflict.

I do not know whether the Minister has yet had the opportunity to read the Lords’ International Relations and Defence Committee report from last week, but it gave us a clear warning that:

“Current levels of China expertise within Government and the civil service are insufficient when compared to the ambitious agenda and the tilt to the Indo-Pacific”.


What are the Government doing to change that? I am sure that the Government have also considered how they can ensure that the AUKUS partnership increases, rather than decreases, our ability to influence China. If there is any detail, or at least reassurance, the Minister can provide on that, it would be helpful.

There are still questions about exactly what our role will be in this partnership. According to the White House, the US sees the partnership as an opportunity to

“leverage expertise from the United States and the United Kingdom, building on the two countries’ submarine programs to bring an Australian capability into service at the earliest achievable date.”

The Minister alluded to this in the Statement, but is there anything more she can say about what UK expertise will be used in this programme? For those of us who are glued to Sunday night television, watching “Vigil”—for those who are not aware, it is about a murder on a nuclear-powered submarine—we just hope that life does not imitate fiction. As an immediate priority, the focus will be on delivering nuclear-powered submarines to Australia. With the expectation to develop other defence systems, including cyber, AI and quantum computing, will this time be used to identify other areas where the UK can contribute?

The Prime Minister’s commitment that this pact will create hundreds of highly skilled jobs across the UK is welcome, but it would be helpful to understand exactly what those jobs will be. We need to know what jobs will be created and where they will be based, because we need to know what skills will be required. Whatever defence contracts result from the announcement, we need to make sure the UK gets its fair share of well-paid, highly skilled jobs within the defence sector. We need to be preparing now to ensure we take advantage of any opportunities available.

To get maximum benefit, we also need to secure our defence supply chains. The Minister will be aware that, recently, there have been a number of attempted takeovers of British defence companies by US organisations. The potential takeover of Ultra Electronics, which provides the control systems for Trident submarines, was referred by the Government to the CMA just last month. Can she explain how she thinks this new partnership will impact on such deals?

Finally, I just want to make the point that, with new international security partnerships, we should never forget or in any way diminish our long-standing relationship with our allies. NATO remains our most important strategic alliance. It has delivered peace and stability in Europe for more than 70 years. That stability in our immediate neighbourhood must always take precedence.

Can the Minister confirm whether any resources will be redirected from western Europe to the Pacific as a result of this new agreement? Can she also say something about what strategy the Government have to protect our bilateral relationships with allies who have raised concerns about the partnership? The Five Eyes sharing arrangements remain critical to our security, and I hope today she is able to confirm that we will act to ensure that AUKUS will not lead to a two-tier alliance or weaken our arrangements for intelligence-sharing capacity.

I hope the whole House will welcome this announcement and new partnership, but the agreement alone will not be enough to achieve the stated mission. The onus is now on the Government to ensure that the security pact allows us to better respond to emerging threats and better protect the existing alliances, but also ensure that we make the most of the economic opportunities for our defence industry.

[Baroness Smith of Newnham (LD)]

My Lords, my welcome to the AUKUS announcement is possibly slightly more muted than that of the other noble Baroness, Lady Smith. Clearly, co-operation with the United States and Australia is important and, as the Statement said, clearly this is supposed to be part of global Britain and the tilt to the Indo-Pacific. However, could the Minister explain to the House how security concerns in the Indo-Pacific are more relevant and important to the United Kingdom than security concerns in our own region? We need to pay particular attention to the question of our relationship with our European partners, in particular with France. Could the Minister tell the House what conversations the Prime Minister might have had with President Macron, or what conversations the Foreign Secretary—if there was one in post at the right time—might have had with the French Foreign Minister ahead of this announcement?

Clearly, the response from the other side of the channel has been one of deep frustration. While on a business level it might be entirely appropriate for us to work with the Australians to deliver the nuclear-powered submarines that they apparently want, if that means that we are damaging our long-standing and vital relationship with France, that is somewhat unfortunate. We might have left the European Union and changed some of our relationships with our European partners, but that does not change our own fundamental security concerns and questions. As the noble Baroness, Lady Smith of Basildon, said, our other traditional alliances are important. Did the Government take them into consideration when making this announcement?

Beyond that, clearly it is important to look at our defence industry. I realise that the noble Baroness, Lady Bennett, might raise her hands or look up in horror but I attended DSEI this week, where I had the opportunity to talk to some British businesses which are indeed absolutely passionate about being able to export. They are small and medium-sized enterprises for whom the opportunity to work with allies, whether from Europe, the USA and Australia, is important. I therefore pay tribute to those companies. In the original Statement the Prime Minister mentioned them; have the Government thought through how supply chain issues and working with SMEs might be supported by the initiative announced last night? Clearly, there are some areas where there are opportunities.

I have a final point of concern. The American approach to leaving Afghanistan left the United Kingdom unable to look after some of the people we might have wanted to repatriate. It seemed rather redolent of Suez, when we could not rely on the United States or the Commonwealth and we were closest to France. How has the world changed so that AUKUS is now the right answer to British security concerns?

[Baroness Goldie (Con)]

My Lords, I thank both noble Baronesses, Lady Smith, for their contributions—it is a pleasure to address both of them. I say to the noble Baroness, Lady Smith of Basildon, that my noble friend Lady Evans is extremely sorry not to be here. She found it difficult to avoid an impossible diary conflict between times suitable for the usual channels and times suitable for the House. I realise that I am a very inadequate and poor substitute but I am pleased to be standing here with pride on behalf of the Government—or at least just now, which is the relevant phrase at the moment. I shall do my best to respond to the points raised.

First, I thank the noble Baroness, Lady Smith of Basildon, for her welcome of the development. I think that, universally, this has been regarded as a positive development, for the United Kingdom, for the Indo-Pacific area and for our relationships, particularly with Australia, the United States and, of course, our regional partners in the area.

The noble Baroness, Lady Smith of Basildon, asked me what this agreement means in practice, and I will do my best to slightly fill that out. It will strengthen our collective ability to ensure our security and defence interests. We will enhance the development of joint capabilities and technology sharing and will foster deeper integration of security and defence-related science, technology, industrial bases and supply chains, which I know the noble Baroness was concerned about. I can say that it was also anticipated that AUKUS—as a Scot, I keep thinking of, “Och, it’s great—it’ll be fine” but I know that is somewhat unclear for this Chamber. I can say that it will promote a significant increase in other aspects of Australia-UK-US defence collaboration, with early focus on artificial intelligence, cyber capabilities, quantum computing and additional undersea capabilities. This could create hundreds of additional highly skilled scientific and engineering roles across the UK and secure further investment in some of our most high-tech sectors. That was an area in which, rightly, the noble Baroness, Lady Smith of Basildon, expressed an interest.

The noble Baroness also raised our relationship with China and indicated that she felt there was a perception that there could be a conflict between our diplomatic and defence strategies. I humbly suggest that that is not the case, and it is important that we put all this in context. Yes, this is about the long-standing and deepening defence and security relationship between the United Kingdom, Australia and the United States. Both are trusted allies that share our vision of the world and the international order in which free societies can flourish, and Australia has one of the largest maritime domains in the world. However, that is not exclusive of or inimical to a good or a positive relationship with China. We have been very clear that we want our relationship with China to be mature, positive and based on mutual respect and trust. I suggest to the Chamber that there is considerable scope for constructive engagement and co-operation but, importantly, as we strive for that positive relationship, we will not sacrifice either our values or our security. So, on the one hand we have a defence partnership that we are discussing this afternoon, which is positive and helpful to the geopolitical character of the Indo-Pacific but, on the other, we recognise that China is an important member of the international community. Its size, rising economic power and influence make it an important partner in tackling the biggest global challenges, and this provides enormous scope for positive, constructive engagement. However, as I say, where we have concerns, we raise them, and where we need to intervene, we will do so.

The noble Baroness, Lady Smith of Basildon, asked how this will help us to influence affairs in the Indo-Pacific. I suggest that it is reflective of the strength of partnership we have. Our record in the Indo-Pacific area is already proven; we recently had the carrier strike group in the area, which was very well received, and we have carried out joint exercises with a number of countries, not least Australia. That is all part of reassuring south-east Asia that our interest in and commitment to the region and the area are real—not in some provocative, bellicose fashion but in a genuinely constructive fashion where we want to influence. Interestingly, I detect that that is exactly how our friends and partners in that region see the United Kingdom and our role. It is worth remembering that the genesis of what we are discussing this afternoon was Australia extending an invitation to the United Kingdom and the United States; it is interesting that it felt confident and impelled to do that. That is a very positive reflection on the United Kingdom and that is why the United States and the United Kingdom responded to that invitation. All this is therefore part of a holistic approach to the region, which is certainly about helping to create stability and support values.

The noble Baroness mentioned the Sunday night drama “Vigil”, which has certainly gripped my attention, although I emphasise that I regard it as a drama with a degree of dramatic licence. Nonetheless, it has good acting but we can all understand that the reality is somewhat different. The noble Baroness asked whether we were confident about the partnership and what we brought to it—what are our skills and experience in this? I observe simply that we have built and operated world-class nuclear-powered submarine capability for more than 60 years. So we bring deep expertise and experience to this partnership, not least, for example, through the work carried out by Rolls-Royce near Derby and BAE Systems in Barrow.

The noble Baroness also raised the specific issue of skills and jobs, to which I have alluded briefly. We anticipate that this partnership, particularly in phase 1—what is to happen in trilateral discussions over the next 18 months—will be an important contributor to skills and jobs.

The noble Baroness, Lady Smith of Basildon, echoed by the noble Baroness, Lady Smith of Newnham, also raised the role of NATO. That is a legitimate question. The noble Baroness, Lady Smith of Newnham, also asked: what about our regional partners in the area? These are important questions. I simply want to reaffirm that this is not about NATO operations but about enhancing the long-standing defence and security relationship between the UK, Australia and the US. NATO will continue to deploy and conduct operations as deemed appropriate by the organisation’s members.

Regional partners are important to us. I am pleased to say that we have strong relationships with a number of the countries within south-east Asia, not least Japan and the Republic of Korea. These relationships are cordial and constructive and those countries will see this partnership as an enhancement to what they all want—stability and an ability to trade effectively in that important part of the globe.

Finally, the noble Baroness, Lady Smith of Newnham, asked about France. I reaffirm that France is an important friend and ally of the United Kingdom. We have a long-standing security and defence relationship with France that is underpinned by the Lancaster House treaty and is exemplified by our combined joint expeditionary force. We are close NATO allies and we have co-operated in areas from the Sahel to the Baltic. That is a measure of the strength of the relationship with France. We value and respect that relationship and would wish it to continue in a strong and sustainable fashion.