Military Aviation Industry

Debate between Lord Hanson of Flint and Peter Luff

Wednesday 15th September 2010 Commons Chamber

[Peter Luff]

The Select Committee’s statement was constructive and thoughtful. I have not read every word of it yet, but it is a very helpful document. In some areas, it has not quite understood the process, but never mind—it is a good response, and today’s debate shows that Members on both sides of the House, including me, understand how important it is to maintain these capabilities and to ensure that we can take part in the next generation, particularly of unmanned aerial systems, which are the future of fast jet production. I will not labour the £38 billion point any more, but it does set the framework of what the Government have to contend with.

For Britain’s defence, and despite all the financial constraints we linger under—both inherited ones and the structural problems caused by irresponsibility in fiscal policy generally—that means taking strategic decisions for the long term. These are the realities we face as we approach the critical decision-making phase of the SDSR. I reiterate that no decisions have been taken on any of the issues debated in the House this evening. The right hon. Member for Delyn (Mr Hanson) referred to the A400M. Everything is in the pot, including the Nimrod MRA4. Everything is there together, and nothing has been singled out or decided. We have to do that to ensure we address both the fiscal challenges and the defence issues facing our country.

[Mr Hanson]

The contracts for the A400M were signed by my right hon. Friend the Member for Coventry North East (Mr Ainsworth) before the election, but that has been put in abeyance by the coalition Government. So a decision has been made on something that would, it had been decided, go ahead.

[Peter Luff]

I would like to be more explicit, but I cannot be. We are, and I quote:

“Pleased that agreement in principle on the future of the A400M programme has been reached between Partner Nations and Airbus Military (AMSL); this is an important stage in agreeing an amended contract.”—

the contract now needs to be amended—

“Work on the amended contract continues, and we expect it to be concluded later this year. However, as these discussions are ongoing and at a critical state, it would be inappropriate to provide any further details at this stage.”

I hope that the right hon. Gentleman will accept, therefore, that the issue is not just about the SDSR; negotiations are also going on at present.

I said that no decisions had been taken. However, my right hon. Friend the Defence Secretary made one such commitment at Defence questions earlier this week: he is keeping the RAF. I hope that provides some reassurance to hon. Members.

The potential prize is great: modernised, well-supported armed forces ready to defend and promote British national interests and successful manufacturing industry to support that. The UK military aviation industry is a strategic asset, and this Government will ensure that it remains so. We are committed to increasing the exportability of our equipment and delivering the industrial and technology support our armed forces need. The MOD’s defence industry and technology policy Green Paper will be a significant step towards achieving those aims. I welcome the opportunity to engage with our industrial partners in the coming months to ensure that, despite the serious financial challenge we face, these aims will become a reality.

Question put and agreed to

Oral Answers to Questions

Debate between Lord Hanson of Flint and Peter Luff

Monday 5th July 2010 Commons Chamber

[Peter Luff]

Like my hon. Friend, I have severe doubts about that particular practice, and I can assure him that I am watching it very carefully.

[Mr David Hanson (Delyn) (Lab)]

Can the Minister tell the House when he expects to agree the contract signed by my right hon. Friend the Member for Coventry North East (Mr Ainsworth) for the A400M, which is built in Bristol and serviced in north Wales? Twenty-two planes with 22 sets of wings are under contract by the Labour Government, but they have been frozen by the Conservative-Liberal Government.

[Peter Luff]

I wish I could answer the right hon. Gentleman’s question at length, but all I can say is that the A400M, like all other major projects, is part of the strategic defence and security review—the long overdue strategic defence and security review.