Oral Answers to Questions
Chris Evans Excerpts(2 years, 4 months ago)
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Chris Evans (Islwyn) (Lab/Co-op)
If this is indeed the last Defence questions for the present Defence team, I would like to place on record my thanks to the Minister for Defence Procurement for his kindness and generosity since I started shadowing him over a year ago. He is well known in the House for his attention to detail and he has been a formidable opponent for me.
“Complacent”, “too traditional”, and “resistant to change or criticism” are some of the words used to describe the Department by the Public Accounts Committee. With a new urgency for innovation due to the clear and present danger created by the war in Ukraine, and with deep concerns that the Department cannot manage large projects such as Dreadnought, is the Minister confident that the Department can deliver the new battle-winning capabilities this country needs, on time and in budget?
Jeremy Quin
I very much thank the hon. Gentleman, my shadow, for his question, which started so well. I am very grateful and I hope that we continue our ongoing relationship across the Dispatch Box. I understand his concerns. They have been voiced by the PAC and we have responded to the concerns raised. I am afraid that I am a details bore, and we do go through the projects project by project. Defence procurement is never easy—it is a tough thing to get right—and I have not yet found a state anywhere on earth that can really deliver to the kind of standards that I am sure the hon. Gentleman would wish to see. What I do know is that, in Defence Equipment and Support and throughout the MOD, we have people who are doing a great job. They are becoming more professional, and senior responsible owners are spending more time on the projects. We are making sure that projects are properly set up to succeed at the start and ensuring that they are properly funded. It is that combination, along with working through the defence and security industrial strategy with British companies, that will get us the results we all wish to see.
Oral Answers to Questions
Chris Evans Excerpts(2 years, 5 months ago)
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Chris Evans (Islwyn) (Lab/Co-op)
I am glad that the Secretary of State mentioned that the MOD did not pay General Dynamics throughout 2021; by December 2021, it had paid £1.1 billion less than scheduled. However, the position is not sustainable in the local economy or in the Welsh economy as it is causing real anxiety among the workers, the wider economy and the local supply chain. When will the Government give an answer on what they will do about Ajax? I agree with my right hon. Friend the Member for Warley (John Spellar), who mentioned the report by the PAC. Anybody who has had anything to do with Ajax will say that, after 12 years, enough is enough and a decision must be taken.
Mr Wallace
I understand the hon. Member’s frustration and that of the workforce in Wales, who had hoped and wanted to produce a vehicle that was fit for purpose and would add to the British Army’s important capability. We have to proceed based on science and evidence. Like General Dynamics, we are bound to a contract, and I do not want to say anything that would jeopardise those positions. We have done independent trials and, when those results are forthcoming, we can have a further discussion. I recently met the head of General Dynamics and made my position on the next steps very clear. As I have said from the beginning, we will not accept into service a vehicle that is not fit for purpose.
Oral Answers to Questions
Chris Evans Excerpts(2 years, 8 months ago)
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Chris Evans (Islwyn) (Lab/Co-op)
UK shipbuilding accounts for 42,600 jobs, yet the Government continue to fail to protect that vital industry and those highly skilled jobs by refusing to build British by default. Can the Minister give me one good reason why we cannot guarantee that all future naval ships procured by this Government will be built in Britain using British steel?
Jeremy Quin
Yes, I can give the hon. Gentleman many more than one good reason for why we have the strategy that we do. To name one, let us look at Type 31, which is a fantastic British export success to Poland and Indonesia; I am convinced that there will be others in due course. It was built with the support of an international consortium and we got the best in the world. It is now based firmly in the UK with a lot of it in the UK supply chain, which is giving the best opportunity for UK jobs and for UK shipbuilders to thrive internationally and competitively.
National Shipbuilding Strategy
Chris Evans Excerpts(2 years, 8 months ago)
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Chris Evans (Islwyn) (Lab/Co-op)
After months of delay, I am pleased that the Minister has come before the House with a shipbuilding strategy.
Now, we all know that the Prime Minister loves a photo opportunity or two, so I am sure that he will enjoy his trip to Merseyside today when he can dress up in his favourite fluorescent jacket and his little hard hat and make his historical analogies to Britain’s proud shipbuilding past. Perhaps while he is there, he would like to explain why the Ministry of Defence has given a £10 million contract this week to a Dutch yard for a vessel that could have been built right here in Britain.
Despite the Prime Minister’s jingoism and nostalgia, the reality is this: the Royal Navy has only 13 frigates and six destroyers. Our Royal Navy is being asked to take on increasing responsibilities, but one in five ships has disappeared from our surface fleet since 2010. It is no surprise, therefore, that the Defence Committee has concluded that the Navy cannot fulfil the full ambition of the integrated review with its current fleet. Our Navy needs more ships, but it is also vital that we ensure that they are built right here in Britain. Our shipyards are crying out for an end to the feast-and-famine cycle of procurement, yet, despite the 30-year pipeline, there is no commitment to ensure that ships are built in UK yards.
Our steel industry and shipyards are national assets, which is why Labour has called for a “British built by default” approach to defence procurement. The GMB has said that Ministers are
“again sowing uncertainty with their disastrous policy refusing to guarantee work for UK yards…No other shipbuilding nation would dream of procuring its own vessels in this way.”
I must ask the Minister this: why does the strategy not promise a “British built by default” approach to defence procurement? Why does the strategy not include targets for UK steel in UK ships? Without either, how can the Minister ensure investment in his stated ambition of local jobs invested in our communities?
The strategy also fails to tackle the deep-seated problems of MOD mismanagement and delivery. The National Audit Office currently rates no major shipbuilding programmes as being on time or on budget, and it is only getting worse. The number of MOD projects rated “amber/red” has doubled and fleet solid support ships have moved from amber to “amber/red” in the past year. Why has the strategy been published without a clear timeline for delivery? How will the £5 billion cover the cost of 150 ships, and is this even new money?
At a time of increasing threats, it is not the time for vanity projects, but the Government, and the Prime Minister in particular, continue to push ahead with a new royal yacht. The Defence Committee had stated that it has
“received no evidence of the advantage to the Royal Navy”
in acquiring it. Does the Minister still think that this is the best way to spend MOD money?
Chasing headlines and photo opportunities on shipbuilding is one thing, delivery, value for money and investment in Britain are quite another. Unfortunately, this strategy fails on all those counts.
Jeremy Quin
I make no apologies for taking time to come to the House with this strategy, because we want to make certain that it is a strategy that works, and that is exactly what we are delivering. There is no jingoism or nostalgia about this strategy; it is hard facts that will deliver for our shipbuilding industry. It is a shipbuilding industry that needs to embrace the modern technology of artificial intelligence and environmental sustainability. That is why we are establishing the UK Shipping Office for Reducing Emissions, with £206 million behind it. It is a strategy that will support our ship buyers with a home shipping guarantee system, in the same way that we support our exports with export guarantees. We have a National Shipbuilding Office that is doing great work and is cohering across Government and delivering for the entire industry.
The hon. Gentleman spoke of warships. We can be very proud that we are putting more money into warships —£1.7 billion will be the spend by the end of this Parliament, doubling our current commitment. The Type 31 frigate HMS Venturer had her steel cut in Rosyth, with HMS Glasgow now well under way on the Clyde. Opportunity exists for Type 32, with up to five entering service with the Royal Navy, and a certainty that we will be going beyond our current level of 19 frigates and destroyers by the end of this decade.
The hon. Gentleman referred to FSS ships, which he knows will have a very substantial element of UK build. They are on time to be delivered within a couple of years of the procurement. We are doing our utmost to ensure that we derive value from this strategy and that it will deliver for Britain.
The hon. Gentleman asks why we cannot have a “build in Britain” strategy. As he knows, that is exactly what we do for warships, and it is this Government who have extended that to say that, for every ship being acquired by the MOD, we will make a case-by-case examination to see whether that needs to be a build in Britain. We have broadened that scope.
When we go beyond defence and warships, we cannot, on the one hand, say that we will support the international rules-based order, yet, on the other, ignore rules organisations such as the World Trade Organisation. We need to work within those rules to get the maximum value for our country, which is exactly what the NSO will do. We have a programme of 150 vessels, £4 billion of support going into British shipbuilding over the next three years, and exciting opportunities that our industry can follow.
Defence Supplementary Estimate 2021-22
Chris Evans Excerpts(2 years, 8 months ago)
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Chris Evans (Islwyn) (Lab/Co-op)
I thank the right hon. Member for Rayleigh and Wickford (Mr Francois) for raising that point of order. If anything proves the heartlessness of Vladimir Putin, it is that news. I join the Prime Minister, as I am sure everyone in the House does, in condemning that action.
I begin by thanking my right hon. Friend the Member for Warley (John Spellar) for opening this timely debate. Like him, I wish the Chair of the Defence Committee a speedy recovery from his minor operation. In this debate we have also witnessed the unique sight of my right hon. Friend the Member for North Durham (Mr Jones) finally finding some common ground with the hon. Member for Plymouth, Moor View (Johnny Mercer)—those of us who know both of them will know that that is an amazing sight. Both spoke of how spending decisions affect the morale of our troops.
The management of MOD spending, our equipment and the numbers of our armed forces are always important, but in the current international climate there is no room for mis-steps. The Government must respond to the threats to the UK and to European security that a Russian invasion in Europe poses. Just as Labour reassessed defence spending after the 9/11 attack on the twin towers, we expect the Government to bring forward a budget boost when the Chancellor comes to the House in exactly two weeks’ time.
Other European allies have already made this move. In the light of Russia’s invasion, Germany has announced an increase in its defence spending, including a €100 billion fund to upgrade its armed forces. Denmark also announced at the beginning of the week that it will significantly increase its defence budget. I welcome these announcements. European countries have been quick to respond to Russia’s actions, recognising that they threaten the security of Europe. As my right hon. Friend the Member for Warley mentioned, Germany’s recent decisions have reversed defence and foreign policy positions that have been held for decades. Chancellor Olaf Scholz has described Russia’s invasion of Ukraine as
“a turning point in the history of our continent”
and made it clear that, in order to ensure the freedom and democracy of Europe, an increase in defence spending is needed.
I want to be clear that if the Government act to increase defence spending in the next Budget, they will have Labour’s full support in doing so.
Mr Baron
I was in the House when the shadow Secretary of State made that announcement during the Defence Secretary’s statement earlier today. If we are to move the dial on defence spending, we need the support of both sides of the House. Can the hon. Gentleman confirm that when the official Opposition ask for that increase in defence spending, it will not be just a one-off? It has to match our interests’ requirements, but it has to be sustainable.
Chris Evans
I think the hon. Gentleman has just written my speech for me. If he will allow me, I will develop that argument further.
Any increase in defence spending would benefit the UK economy. If done well, taxpayers’ money can be spent in a way that enables more apprenticeships, the growth of small and medium-sized enterprises, and for the UK to be a world leader in design, innovation and engineering. However, mismanagement and delays of contracts, or contracts being awarded to foreign companies, will damage the UK defence sector. Unfortunately at present, public money is not being used in a way that brings the most benefit to the UK. Without steady investment and supply of contracts, British shipyards, British aerospace and, ultimately, British jobs will suffer.
When I speak with industry representatives, they tell me they want fairness, not favours; all they ask for is a level playing field. UK bids are competing in a race to the bottom with international companies that enjoy state backing. The feast and famine cycles of defence contracts leave British companies unable to prepare, or to sustain investment in apprenticeships and jobs over a long period of time. If these companies suffer, we lose our domestic defence manufacturing sector.
Labour supports the UK defence industry, which is why we believe in a “British built by default” approach to defence procurement. Our shipyards and our steel industry are national assets, and we need to see a clear plan from the Government on how we enhance these capabilities.
Concerns have been raised by the National Audit Office, the Defence Committee and the Public Accounts Committee about the running of the MOD. Now more than ever, at a time when European security is most under threat, Ministers must ensure that the deep-rooted problems in the MOD are urgently addressed. As the NAO suggests, the Government’s new equipment plan still fails to ensure that our armed forces will get all the equipment they need. Sadly, value for money for the British taxpayer is not being guaranteed. Then, of course, there is the Ajax-shaped hole at the heart of the British Army’s future, which I am sure we will hear more about in the coming days.
In 2020, Labour welcomed the Government’s extra £16.5 billion investment in defence spending, with more scope for high-tech research and development, but the Government’s plan only papers over the cracks in the MOD’s budget. Too much of that new money will be swallowed up by the MOD’s budget black hole. The National Audit Office also states that too little has been done to reform the MOD’s controls in order to deliver this plan on time and on budget. There is also no plan to deal with massive MOD waste, despite at least £13 billion of taxpayers’ money being wasted through MOD mismanagement or misjudgment since 2010, with £4 billion wasted in the past couple of years alone while the present Defence Secretary has been in post. Unfortunately, it all points to the conclusion that the MOD is a uniquely failing Department.
If wasted expenditure had been avoided or reduced, funding would have been available to strengthen the UK’s armed forces. There would have been no need for the cuts to troops, planes, ships and equipment forced by financial pressures. For example, in last year’s integrated review, the Government cut main battle tank numbers by a third. Restoring the Challenger fleet to full strength would cost an estimated £430 million, equivalent to the money wasted by the MOD.
Jeremy Quin
As ever, I am listening closely to the hon. Gentleman’s remarks, and we believe the £4 billion figure is wholly spurious. I seem to recall that, when we cut assets, the document called it waste, and when we invested in assets, that was also waste. It is a very odd document.
Chris Evans
I am very pleased and quite proud that the Minister has looked into that document so well—it shows his due diligence. However, many of the figures in the waste dossier he refers to came from the National Audit Office’s figures. I was a member of the Public Accounts Committee for five years, and sat through many of those uncomfortable hearings with Defence civil servants. It is not just land capabilities that have suffered: last year’s defence Command Paper announced that the entire fleet of Hercules aircraft would be scrapped. At a cost of about £150 million per aircraft, the fleet of 14 would have cost £2.1 billion, comparable to the amount of money that the MOD has wasted on write-offs since 2010.
I am sure Government Members will ask, “What would Labour do differently?” In Government, we would commission the NAO to conduct an across-the-board audit of MOD waste. We would also make the MOD the first Department subject to our proposed office of value for money, with a tough regime on spending decisions. The Public Accounts Committee concluded last year that the MOD’s procurement system is “broken” and “repeatedly wasting taxpayers’ money”—those are the independent Public Accounts Committee’s words, not mine. With any spending announcement on defence, a similar announcement must be made outlining the methods for tackling waste.
As the Minister refers to, Labour’s dossier on waste in the MOD between 2010 and 2021 found 67 officially confirmed cases of waste, the cost of which could have been reduced by better management. All defence projects carry a degree of financial waste, but the level of waste in the MOD goes far beyond this. Some examples that Labour has uncovered are simply embarrassing, such as £64 million wasted on admin errors. When waste on this scale is occurring alongside cuts to our armed forces and cancellations of, or reductions to, armed vehicle projects, Ministers must ensure the chronic mismanagement within the MOD is immediately addressed. Can the Minister guarantee that our troops will get the right kit when and where they need it, and does he accept that defence spending plans are forcing further cuts to our personnel?
Given the threat that Europe now faces from Vladimir Putin’s aggressive regime, it is clear we must do all we can to halt the cuts to our armed forces. Now is the time to reassess our defence spending. We must ensure that our armed forces have the equipment they need, when they need it. We must build a strong defence industry and use public money effectively. We must respond to the new threats in Europe. Labour stands ready to support an increase in defence spending, support our NATO allies, and—above all—support the brave men and women who are serving in our armed forces.
Oral Answers to Questions
Chris Evans Excerpts(2 years, 9 months ago)
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Chris Evans (Islwyn) (Lab/Co-op)
I am going to do something quite surprising and agree with the Secretary of State when he says, of the helicopter competition, that he does not want a “here today, gone tomorrow” supplier. What are the Minister’s plans to ensure that there is long-term investment in the UK helicopter industry, particularly in high-value engineering design and manufacturing jobs; apprenticeships; and enduring skills development in this vital industry?
Jeremy Quin
On the NMH, to which the hon. Gentleman refers, it is likely, given the timescale—we want to have the helicopters in service in 2025 or as close to that as possible—that we will be seeking to procure an existing platform. However, that absolutely does not gainsay the fact that we will want to see real social value created in terms of engineering skills and capabilities in this country. That will be part of the competition.
Oral Answers to Questions
Chris Evans Excerpts(2 years, 10 months ago)
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Jeremy Quin
I congratulate my hon. Friend on her elevation; that is good to see. She refers to the approval process for Ajax, which was indeed under the last Labour Administration. I think it passed maingate business approval in March 2010, around the same time that the National Audit Office was pointing out the multi-billion pound black hole that the Labour party was leaving in Defence at the time. I do not believe that Fort Blockhouse will be disposed of until 2023, so there is time to get it right. I would be more than happy to meet my hon. Friend if that is helpful.
Chris Evans (Islwyn) (Lab/Co-op)
I join other voices in expressing my own sadness at the loss of our colleague Jack Dromey. Jack was someone who committed his entire life to improving the lot of others. He was, and is, an example to us all.
Last month, the Government’s own report found that Ministers were in the dark about the serious issues surrounding Ajax for a whole two years before the current Minister was informed in 2020. During that time, soldiers were put in a vehicle that could cause harm. What new measures have been put in place to ensure that Ministers are fully on top of what is going on in their Department?
Jeremy Quin
There is a whole raft of measures. I have met the hon. Gentleman and he is aware from reading the report of what has been set out. We immediately accepted the vast majority of recommendations. There are about two recommendations that need to be worked on, but the intent is there and our intent is to adopt them. One of the most important aspects is to make certain that all people with a view on safety are part of the decision making process, so that everyone with a view has an opportunity to air it and everyone is listened to with respect. We are also putting health and safety input into the highest ranks of the decision making process, so that major decisions cannot be made, either by Ministers or by other parts of the organisation, without that health and safety input right at the top of the organisation. These measures will help to ensure that such a situation does not reoccur.
Oral Answers to Questions
Chris Evans Excerpts(3 years ago)
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Mr Wallace
I have read the report and, while it makes some very important points, I am sad to say that it is actually no different from the series of reports that I have read over decades. It is not any worse than some of the ones from 2008 and 2009. There are repeat problems, which is why, in seeking defence reforms, I have been determined to make sure that we get on top of these issues. [Interruption.] I distinctly remember the report that was delivered in 2010, which showed that, in one year under the Labour Administration, they spent £3 billion without even knowing where it was coming from. My right hon. Friend is right that there are lessons to be learned. We will get on it. I would be delighted to meet him to discuss what we think we can do. Many of the programmes referred to not only pre-date me and this ministerial team, but predate my right hon. Friend and his ministerial team and we need to make sure that we get on top of that issue. There are solutions to this, but we must also enforce tight timetables and then we will deliver.
Chris Evans (Islwyn) (Lab/Co-op)
It is welcome news for the British aerospace industry that the Government have published a draft plan to buy between 36 and 44 aircraft under their long-awaited New Medium Helicopter acquisition programme. Like other Members on both sides of the House, we, too, could not let this pass without mentioning the National Audit Office report. The Government have been in power for 11 years. They have overseen a Ministry of Defence that has created a black hole of £17 billion. The Defence Secretary has stood here and said that the helicopter will be ready by 2025. Why, given the evidence that the MOD has difficulty in fulfilling its contracts, is he confident that this will happen? How long will it be before the Ministry of Defence takes these NAO reports seriously, and will it take positive action to bring some positivity around procurement contracts?
Mr Wallace
The reason why I am confident about the 2025 timetable is that the expected bidders in the new medium-lift helicopter programme are expected to bid mature products that have been in production not only in the United Kingdom, but in Europe and around the world. The only negotiation would therefore be around European content and European build and all the other factors that are very important to hon. Members. I am pretty confident about 2025, but it does of course depend on what extras the services want to have added on. On the issue of 10 and 20-year programmes, it is, as hon. Members who have served in the Ministry will know, that if we change the plans half way through, we incur costs or delays. That has been part of the problem for many, many decades, but it does not change the fact that defence procurement programmes are decades long, which has a greater impact than if we were just going out there and buying a car.
Oral Answers to Questions
Chris Evans Excerpts(3 years, 2 months ago)
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Jeremy Quin
I am hoping to send an exact message. I reassure the right hon. Gentleman that, as I have said, we have made it absolutely clear that the contract will go to a British company, solely or as part of a consortium. We have introduced the social-value model, which is included in the defence and security industrial strategy, and it will play a significant part in the overall assessment phase. The right hon. Gentleman has pushed for this competition for a long time; it is ongoing and is going to happen, and I am looking forward to it. I am certain that British companies will be absolutely embedded throughout the process.
Chris Evans (Islwyn) (Lab/Co-op)
The Minister will know that companies in the defence industry have been subject to a spate of takeovers. Many familiar names, such as Cobham and GKN Aerospace, are now in foreign hands, while Meggitt has recently been subject to a takeover bid from a US-based company. Even though the companies involved have promised to protect jobs and research and development, that has not prevented them from selling assets and closing factories. Workers at GKN Driveline at Erdington in Birmingham are going on strike to protest against a proposal for 500 redundancies next May. What are the Government doing to ensure that when British companies are taken over, promises to keep jobs and research and development in this country are kept?
Jeremy Quin
As you will be aware, Mr Speaker, the legislation that we passed broadening the scope in which intervention can take place was cleared through this Parliament and is ready to be introduced. We take very seriously our responsibilities under the Enterprise Act 2002. This is a matter for the Secretary of State for Business, Energy and Industrial Strategy acting in his particular capacity, but guarantees can be sought and enforced as part of that process.
Oral Answers to Questions
Chris Evans Excerpts(3 years, 4 months ago)
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Jeremy Quin
We are delighted to be playing our part in delivering this first-rate asset, which will be a tremendous boost to the UK and global Britain. We should recognise that we will have greater clarity on the costs and the profile of that when we have completed our market engagement. The prior information notice has just gone out. To put it in a helpful context for the right hon. Gentleman, over four years we are talking about an impact on the overall defence budget in the region of 0.1%. I would like to put that into perspective for him.
Chris Evans (Islwyn) (Lab/Co-op)
With the National Audit Office having judged the defence equipment plan to be “unaffordable” for the fourth year in a row, the continuing well-publicised disaster and rising cost of the Ajax project, and the cancellation of Warrior, can the Minister explain why this vanity project has become a spending priority for the Ministry of Defence?