(3 months, 2 weeks ago)
Commons ChamberIt is a great pleasure to see you in the Chair, Madam Deputy Speaker. I look forward to you extending your authority to unruly fourth parties, even if they are new to that role.
I welcome this statutory instrument, which gives effect to the convention on the establishment of GCAP. GCAP is not important but vital to a range of different priorities, to which I urge the new Government to pay very close attention. It is vital to the United Kingdom’s ability to play its role in defending our values against peer or near-peer adversaries and the threats that they present to our way of life. We will not do that in the very near future if we cannot command a sixth-generation capability. It is vital to developing and maintaining sovereign air capability. If we had no legacy of manufacturing complex combat air systems, we could not start it. That enterprise cannot be begun from nothing.
The flipside of that inevitable truth is that if we neglect what we have developed, at great cost to the public purse over the past 100 years, we defeat the legacy of world-leading extraordinary aircraft, civil and military, that have come out of the United Kingdom over the past 100 years. We also create an extraordinary gap in our ability to defend the realm—the first duty of any Government. The programme is vital for the 600 stakeholders in the UK alone who have been engaged with GCAP to date, and it has not even got up to speed yet. Those are just a few elements of why this is vital. In a geographical sense, it is extraordinarily important to defence manufacturers in the central belt of Scotland and the north-west of England, but I see no reason to disbelieve the claim that it has positive effects for constituencies all across the United Kingdom.
I seek to impress on the Minister for the Armed Forces—who I know gets it, and I am glad that he is here today—that he should challenge any rise in Treasury dogma when it comes to GCAP. It is an opportunity for the United Kingdom to repeat the world-leading performance of Harrier and the Blackburn Buccaneer, the extraordinary capabilities of the Panavia Tornado and the exceptional abilities of the BAE Typhoon. That is what it can do. What it expressly must not do is repeat the incredibly self-defeating cost to the public purse and defence capability of the TSR-2 fiasco in the 1960s. Unfortunately, an incoming Labour Government scrapped that at huge cost to our defence capability and huge cost to the public purse. It was a demonstrable exercise in a Treasury obsessed with the price of everything and myopic about the value of everything. I repeat, in case I sound political, that I know the Minister for the Armed Forces gets it. We trust him to do the right thing.
The hon. Gentleman is quite right to highlight what happened to TSR-2, which was a generation ahead of its time and a world beater. It was scrapped because the Treasury wanted to buy the F-111 instead, which was an American aircraft, and then it did not end up buying it. There is a lesson from history there too, is there not?
If we take, as the United Kingdom has, an extraordinarily complex programme somewhere down the road, then the opportunity cost, much less the financial and operability cost, of turning back on that must be well set out. I am afraid that those are the details the Treasury has a history of not being that interested in. It is more focused on the number at the bottom right-hand side of the balance sheet, but this is far too important to yield to that level of priority.
It is much to be regretted that the future combat air system and GCAP are proceeding in the European theatre in parallel. That is a grossly expensive duplication. I greatly fear that there is nothing we can do about it now. Nevertheless, it is much to be regretted. I am not certain that the partners in the competing French-led FCAS programme will be happy partners throughout, but that remains to be seen. The Minister for the Armed Forces must ensure that the door is left open for any latecomers or laggards who want to get on board with GCAP. I would appreciate his assurance, either today or at a later date, on that willing acceptability and acceptance.
As it is a Foreign, Commonwealth and Development Office Minister who is leading today, let me say that the one thing the extraordinary aircraft I listed did not enjoy was particularly healthy export success. GCAP must have exceptional export success because, quite apart from the standard avionics engines and air frames that we have to deal with in conventional traditional aircraft, this aircraft is a breed apart in terms of its electronic warfare capability. It is a combat system, which happens to be in an aircraft, that is extraordinarily expensive. If the price of that is left to the Italians, the UK and the Japanese, we will face no small measure of difficulty.
On the statutory instrument itself, article 34(2) of the convention makes provision for host countries experiencing “serious balance of payment” issues. I draw Members’ attention to the sovereign debt liabilities of both Japan and Italy—and the UK itself, although it would be the third of that list. But the convention merely seeks—to inform the Minister—to “consult” in such circumstances. It would be appreciated if we could know what type of consultation that would involve. Further, article 19(1)(c) clarifies that funding from each party will
“be set out in a further arrangement”.
However, the convention does set out that the steering committee will have equal representation from each of the parties. How will the convention decide what the funding will be based on? Will it be based on orders, or on the number of national employees employed in the steering committee? How will that work? It is unclear.
In closing, Leonardo in Edinburgh is the brain and nerve centre of GCAP; it is the central nervous system of this world-leading capability. The system is being designed and finalised in Edinburgh, and it will be built in Edinburgh at Leonardo. That brings me on to the final provision in the SI, which states that the headquarters of GIGO will be established at a later date, but that it will be in the UK. It is really important that wherever it is established, it has close connectivity with the key prime manufacturers of GCAP: Rolls-Royce, Thales, BAE and Leonardo. It must be in a part of this island where an outstanding quality of life can be enjoyed, with access to good schools, good quality of life, transport infrastructure, an international airport and good links with London. That place is Edinburgh.