Oral Answers to Questions
James Cartlidge Excerpts(1 year, 2 months ago)
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The Minister for Defence Procurement (James Cartlidge)
The latest estimates suggest that Ministry of Defence investment supports over 200,000 jobs in industries across the UK. I believe that the best way to keep growing jobs in defence is to back the British defence industry. That is why I am delighted to confirm that, this week in London, we are hosting the biggest ever DSEI—Defence and Security Equipment International—showcasing the very best of the British defence industry, with companies large and small. We should remember that they provide not only prosperity in every part of our country, but the means to defend ourselves in an increasingly contested world.
Mr Sharma
The Defence Secretary’s predecessor rightly prioritised British jobs over buying off-the-shelf from America, but The Times recently exposed a difference of opinion with the Prime Minister, who insisted on buying American helicopters. Can the Minister assure the House that the Secretary of State will stand up for British jobs and research and development, or is our only hope to replace him with my right hon. Friend the Member for Wentworth and Dearne (John Healey)?
James Cartlidge
Debate is ongoing in defence procurement, and has been for many years, about the difference between buying off-the-shelf and having our own sovereign capability. The fact is that, until we brought out the defence and security industrial strategy in 2021, arguably the default position of the MOD was to go primarily for value for money. Since DSIS, we have a more flexible and balanced approach, seen in many specific procurements, where we give much greater weighting to social value and local content. This is illustrated in many procurements because, above all, we want to support British jobs and have our own sovereign capability.
Mr Mark Francois (Rayleigh and Wickford) (Con)
My condolences to the Secretary of State.
Babcock is one of the largest defence employers in the country, but as reported in the Sunday press, its record on refits of surface ships is woeful. It took over four years to refit the Type 23 frigate HMS Iron Duke. Its record on submarines is even worse, taking seven years to refit a Trident boat. According to the journal Navy Lookout, which said this online, so presumably the Russians and the Chinese could have read it, a few weeks ago not a single one of our attack submarines was at sea; they were all tied up alongside. This is deeply embarrassing to the Department and to the Royal Navy, whose admirals are tearing their hair out. It is Babcock’s fault. Will Minister get the senior directors of Babcock into the Department for an interview without coffee, and ask them to raise their game for the benefit of the Navy and the defence of the realm?
James Cartlidge
I have the greatest respect for my right hon. Friend, but he will appreciate that we do not comment on the operational availability of submarines, which is a particularly sensitive matter. However, he is absolutely right that we need to focus on the time it is taking to bring ships and all aspects of our fleet back into service. I confirm that I regularly engage with Babcock, and I will visit Devonport very soon.
Maria Eagle (Garston and Halewood) (Lab)
Thank you very much, Mr Speaker.
The Government have wasted £15 billion through the mismanagement of defence procurement, while failing to deliver vital equipment and overseeing the loss of 30,000 highly skilled jobs in the defence and aerospace industry since 2010. Does the Minister accept that preventing another 13 years of Tory failure is key to increasing the number of UK-based jobs in the defence sector, backing British industry and British military resilience?
James Cartlidge
I welcome the right hon. Lady to her new position as my ministerial shadow. We are very proud of our record, because in the past year or so we have been faced with a war on our doorstep in Europe, and procurement has risen to the occasion. Defence Equipment and Support in Abbey Wood has delivered kit to Ukraine in record speed. We have seen the acquisition of equipment such as the Archer on a quick basis, to fit our requirements. I absolutely confirm that we are committed to maximising the number of jobs that come from our procurement, while balancing that with the need to give our armed forces the best possible capability.
Maggie Throup (Erewash) (Con)
Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
The Minister for Defence Procurement (James Cartlidge)
The Government continue to invest significant sums to improve the quality of UK service family accommodation, with £337 million invested over financial years 2020-21 and 2021-22 combined, and £163 million in 2022-23. The forecast for this financial year is £312 million.
Emma Hardy
Ofsted chief inspector, Amanda Spielman, has repeatedly said that she has “deep concerns” about the “continued failures” to improve service accommodation for armed forces recruits over the past seven years. Will the Minister explain why those concerns from neutral Ofsted inspector Amanda Spielman have fallen on deaf ears, and why those improvements are yet to be made?
James Cartlidge
This is an extremely important subject, and we care immensely about improving our estate. Such concerns do not fall on deaf ears. If that were the case we would not have put on the table a further £400 million for SFA in the defence Command Paper refresh. Precisely because of that additional funding, this year our spend will be almost double that of last year.
Sir Edward Leigh (Gainsborough) (Con)
The Prime Minister said he was going to lead by example, and that when it came to the military base at Catterick, he was going to ensure that illegal migrants were housed there. We now understand that the generals have said they do not want a bunch of Afghans and Iraqis next to their squaddies, so nothing is happening with regard to illegal migrants being put there, although the Ministry of Defence is so determined that its soldiers should not be placed near migrants that it is moving them out of RAF Scampton. When will illegal migrants be placed in Catterick, as promised by the Prime Minister? I want a date and I want it now.
James Cartlidge
I visited Catterick on Friday and I discussed precisely that matter with senior members of the armed forces based at Catterick. The characterisation that my right hon. Friend uses is not correct. These matters are being considered objectively and carefully, but that work is ongoing.
Helen Morgan (North Shropshire) (LD)
Mr Philip Hollobone (Kettering) (Con)
The Minister for Defence Procurement (James Cartlidge)
My hon. Friend asks an excellent question. It must be clear to everyone just from what is available on social media that uncrewed air systems, as they are called, have an extraordinary impact in theatre. I reassure him that we are working on a strategy to look at how we can make the most of this capability to ensure that, above all, we have our own cutting-edge sovereign capability.
Matt Western (Warwick and Leamington) (Lab)
James Cartlidge
I did give a statement to the House—I do not know whether the hon. Gentleman was present—in which I confirmed that we would learn the lessons of the Sheldon review, but, above all, confirmed the good news that Ajax was with the field Army for regular training. I hear that that training is going extremely well.
Chris Stephens (Glasgow South West) (SNP)
James Cartlidge
At the moment, we are not releasing specific details because the work is ongoing, but I assure him and the House on two points. First, the Defence Infrastructure Organisation has been undertaking a huge amount of work—in fact, there has been work on RAAC in the MOD context since 2019. Most importantly, we are not aware of any impact from RAAC on service family accommodation.
Selaine Saxby (North Devon) (Con)
James Cartlidge
It is good news on both fronts for my hon. Friend. First, yes, a lot of work is going on to improve the speed of procurement. I am also pleased to confirm that I have already a visit planned to her part of the world in a couple of weeks. I will liaise with her office about meeting those companies.
Jack Lopresti (Filton and Bradley Stoke) (Con)
Ukrainian and UK defence companies are going up against barriers and bureaucracy when trying to set up joint working and joint projects. Could my hon. Friend update the House on how he is reducing that, so that bilateral collaboration can be made easier and quicker?
James Cartlidge
My hon. Friend has been an absolute champion of all matters relating to our relationship with Ukraine. We have seen very rapid procurement, particularly in relation to urgent requirements going into Abbey Wood in his constituency. I understand that he will hold a meeting shortly with some major Ukrainian defence industrialists, which he has kindly invited me to, and I look forward to engaging with him and those companies soon.
Richard Foord (Tiverton and Honiton) (LD)
Last September, the right hon. Member for South West Norfolk (Elizabeth Truss) announced £2.3 billion to be made available for Ukraine in this financial year. We are now in another September, with a new Secretary of State. When can we expect that sum of money to be made available to Ukraine?
James Cartlidge
It is always a pleasure to engage with the hon. Gentleman. If I cannot visit that specific company, I intend to hold forums for small and medium-sized enterprises around the country—the next one is in Wales, but we will certainly hold them in his part of the world—and I will let him know the details.
Sarah Atherton (Wrexham) (Con)
While Ukraine continues to combat Putin’s aggression on the battlefield, there is no let up in Russia’s nefarious campaign of espionage and subversion against western democracies. That threat, and the so-called grey zone, spans the public, private and defence sectors, aiming to continually challenge our critical national infrastructure capabilities. What work is the MOD doing across Government Departments, and the private and public sectors, to combat hybrid threats?
Oral Answers to Questions
James Cartlidge Excerpts(1 year, 5 months ago)
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Theresa Villiers (Chipping Barnet) (Con)
The Minister for Defence Procurement (James Cartlidge)
The Ministry of Defence works closely with UK industry and academia, including small and medium-sized enterprises, to identify and invest in innovative technologies that address our most pressing capability challenges, as well as publishing our future priorities to incentivise investment. We are transforming processes to drive this at pace, and we are already testing and deploying these technologies.
Theresa Villiers
The integrated review said that artificial intelligence would be used to strengthen defence capabilities. So in what ways are the armed forces using AI and does the Minister agree that weapon systems should always be subject to direct human control and never be allowed to operate autonomously?
James Cartlidge
My right hon. Friend asks an excellent question and I know there is huge public interest in AI. I make it clear that last year’s defence AI strategy set out our intent to develop and use artificial intelligence ambitiously, safely and responsibly. We do not rule out incorporating AI within weapon systems, but we are clear that there must be context-appropriate human involvement in weapons that identify, select and attack targets. The UK does not possess fully autonomous weapon systems and has no intention of developing them. Finally, any weapon system used by UK military would be governed by the MOD’s robust framework of legal, safety and regulatory compliance regimes, irrespective of the technology involved.
Nick Smith (Blaenau Gwent) (Lab)
Morpheus is a £3 billion next-generation defence communication programme. It is meant to replace the Bowman kit on Ajax vehicles and was originally set for introduction in 2025, but Ministers have recently said that a revised initial operating capability is “to be determined.” When can we please have a statement on the state of play and the delivery of Morpheus?
James Cartlidge
The hon. Gentleman asks an important question on an important programme. We are still committed to Morpheus, but there is a limit to what I can say at the moment because we are having contractual discussions with the supplier. I hope I can say more in due course. On Ajax, I make it absolutely clear that the intention is to upgrade the Bowman operating system within Ajax as the next step.
Bill Esterson (Sefton Central) (Lab)
John Spellar (Warley) (Lab)
The Minister for Defence Procurement (James Cartlidge)
We are driving the delivery of capability to the frontline. Over a two-year period to December 2022, we have seen a one-year reduction in the average programme duration, but we can do more to improve and are committed to learning the lessons of the Sheldon review.
Bill Esterson
On 13 March, the Defence Secretary told me that UK steel was not specified in defence procurement because
“we do not manufacture the type of steel”—[Official Report, 13 March 2023; Vol. 729, c. 529]
required. But according to UK steel producers, this is not true as they adjust production lines to match the needs of each contract. Now he knows our steel producers can deliver, will he do what all other major countries do, for reasons of national security, and guarantee to use domestically produced steel in defence procurement?
James Cartlidge
I do not accept that. I am happy to write to the hon. Member with the details. Our position is that, obviously, we want to use UK steel and we recognise its quality, but there will be cases where the appropriate steel has to be sourced from elsewhere. Ultimately, we have to deliver the equipment required for our capability.
John Spellar
It is probably a bit of a shame but, after missing out on the job of Secretary-General of NATO, the Secretary of State seems to have reverted to “no more Mr Nice Guy” mode today, although it may improve as the day goes on.
I ask the Minister, in an amicable way, why, when every major military-industrial power is relentlessly focused on building domestic industrial capacity following Russia’s invasion of Ukraine, he is stubbornly refusing to do the same. His previous answer on steel shows again that the mindset has not changed. Why will he not back British industry and British military resilience?
James Cartlidge
I am happy to be Mr Nice Guy when it comes to British industry. A central tenet of the defence and security industrial strategy is that industrial capacity is part of our defence capability. I am absolutely clear about that. Of course we want to have a strong domestic industry. There are occasions when acquisition has to be undertaken at pace and, as we have seen in getting equipment out to Ukraine, we have had to be flexible in how we source that equipment. But we are absolutely committed to a strong industrial base for defence, both at SME level and with our primes.
Jack Lopresti (Filton and Bradley Stoke) (Con)
Will my hon. Friend look at how the MOD can support the UK’s domestic supply chain by requiring prime contractors to adhere to a 30-day payment code for all defence suppliers, regardless of where they sit in the supply chain?
James Cartlidge
My hon. Friend is a champion of SMEs and makes an excellent point about prompt payment. I can assure him that the MOD has a standard contract term that requires primes to pay suppliers within 30 days. I am informed this is called DEFCON 534. Obviously, it is not to be confused with other uses of the word “DEFCON”, but it is a very important point. Like him, I want to see our SMEs supported.
Chris Evans (Islwyn) (Lab/Co-op)
When I asked the Minister for Defence Procurement to give a statement on the Sheldon review two weeks ago, he recognised the importance of workers to the defence industry. We have already heard from my hon. Friend the Member for Blaenau Gwent (Nick Smith) about the problems of Morpheus, which I understand is now rated red by the MOD; the problems we had on Ajax are emerging on Morpheus. One of the issues that came out of the Sheldon review was that the company was not listening to the voices of workers on the shop floor. What guarantee is the Minister putting in place to ensure workers have a system for reporting back, so that, when things go wrong, as with Ajax or, potentially, Morpheus, they are reported, listened to and acted upon?
James Cartlidge
As I said in the statement, I recognise the unique angle the hon. Gentleman has on this issue, because the factory in question is in his constituency. I stress that the employment of those employees is the legal responsibility of the company. We engage closely with them. One of the lessons learned is about that close engagement at SRO level through Defence Equipment and Support. Andy Start, CEO of DE&S, has led huge change in improving the way we work together. I suspect we will continue to build on the significant improvement the Secretary of State just highlighted, in terms of both cost and timing, between when the Opposition was last in power and now.
Dave Doogan (Angus) (SNP)
The previous Minister for Defence Procurement impressed many by hitting the ground running. He developed a forensic grip on the manifold issues within this dysfunctional area of defence and he worked up a plan to try to deal with that. Sadly, he moved on before he could implement that plan, so can I ask this latest Minister for Defence Procurement, does he have a plan? What will be the first evidence of that plan that our weary service personnel and taxpayers might see?
James Cartlidge
I am grateful to the hon. Gentleman for his praise for my brilliant colleague, my right hon. and learned Friend the Member for Cheltenham (Alex Chalk), who is now Secretary of State for Justice and the Lord Chancellor, no less. Absolutely, we have a plan, and that plan must take into account the lessons from the Sheldon review. In taking on this job, I recognise that there has been huge focus on Ajax, but I hope the fact that Ajax is now with the Household Cavalry for regular field training is a symbolic moment that shows we are turning the corner. We are going to engage right across defence to develop a better procurement system, and I want to ensure that delivers better outcomes. As I said at the Defence Committee, that is why we have tasked the permanent secretary to undertake an end-to-end review of the whole defence operating model.
Dave Doogan
That response could be loosely regarded as a stab at the previous question, but it was certainly not an attempt to answer my question. Let me try to probe a little further and give the Minister some examples that he may wish to bombast us with about the progress he is making. How has he challenged the pedestrian progress towards the next phase of the new medium-lift helicopter tender? What is the delay with the Type 32 or Type 31 successor announcements? Why does his element of defence not procure ground-based anti-aircraft missile systems to protect these islands in a more responsible way?
James Cartlidge
The hon. Gentleman has ranged a long way, from air to ground. The key element is to strengthen our speed and agility, whatever the platform in question. Some of the platforms he refers to are at a conceptual phase. I am committed to driving pace because, although times are improving overall, ultimately we do not want to have the delays we have had in some notable programmes. We need pace because that is how we maintain our competitive edge against our international adversaries.
John Spellar (Warley) (Lab)
The Minister for Defence Procurement (James Cartlidge)
The right hon. Gentleman is very persistent. I will have to check that point for him.
Tom Randall (Gedling) (Con)
Matt Western (Warwick and Leamington) (Lab)
James Cartlidge
That is an amusing way of putting the question but it is a serious point. Our plans have not been affected in operational terms because it was always planned that the Prince of Wales would return to flight trials this autumn, and that remains on schedule.
Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)
Forty years ago, Sir Galahad was struck during the Falklands crisis, and many Welsh Guardsmen lost their lives and burned to death. I have just attended a meeting of the widows and children, and some of the veterans, who have been desperate to get to the bottom of exactly why that happened but have been blocked through “no releases”. I beg my right hon. Friend to allow colleagues from across the House to come and see him about the release of that information.
Helen Morgan (North Shropshire) (LD)
On 24 October 2021, the former Defence Minister, the right hon. Member for Horsham (Jeremy Quin), wrote to my predecessor and confirmed that a badly injured veteran in my constituency would receive adaptations to his home. Delays ensued, and last week I had a meeting with someone from the Defence Infrastructure Organisation, in which he declined to turn his camera on and said that the work had not been signed off by a person with the right authority. Will the Minister confirm whether the former Minister had the authority, and will he honour that commitment?
James Cartlidge
The hon. Lady is more than welcome to write to me with the details, and I will look into this as soon as possible.
Cherilyn Mackrory (Truro and Falmouth) (Con)
As we have already heard, we were lucky enough to welcome the national armed forces family to Falmouth on Saturday for the national Armed Forces Day. From cadets to veterans, and those involved in their air display and all the national armed forces personnel, will the Secretary of State join me in thanking everybody for their efforts, and does he agree that this was the best Armed Forces Day we have ever experienced?
Military Accommodation: Safety Inspections
James Cartlidge Excerpts(1 year, 5 months ago)
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The Minister for Defence Procurement (James Cartlidge)
The Ministry of Defence is responsible for some 47,800 military homes in the United Kingdom. Since 1 April 2022, the management and maintenance of the vast majority of that accommodation has been delivered by three contractors: Amey in the central and northern regions; VIVO in the south-east and south-west; and Pinnacle who run our national service centre.
There are 27 different statutory and mandatory housing safety inspections that apply to each property, which contractors are required to complete at different time intervals. These inspections are each undertaken by the contractor on a regime planner, with the schedule dates at least 12 weeks in advance of the expiry date of any certification.
By law, all occupied rented homes are required to undertake landlord gas safety inspections (LGSI) every 12 months. As part of the standard protocol, all personnel who move into Defence accommodation should have an LGSI, alongside an electrical installation condition report (EICR), completed within 28 days.
Since April 2022, more than 12,000 families have moved into military houses and been provided with valid statutory and mandatory certificates at the point they move in. However, it has become clear that progress to update gas certificates and electrical inspections for a number of existing residents which had already elapsed was not quick enough. Consequently, as of 20 June, there are 795 homes currently occupied by service families without valid gas certificates.
A number of factors have led to this situation. It appears that in many cases operatives were unable to gain access to properties due to miscommunication. On other occasions, contractors missed agreed appointments. Then there were supply chain resource problems, including sourcing suitably qualified gas and electrical tradespersons and a backlog of work inherited from the previous contract. Furthermore, legislation has reduced the currency of existing electrical safety certificates from 10 years to five, increasing this battery of checks.
The expiry of a certificate does not immediately render a house unsafe, but, clearly, the longer a home is left with expired certificates, the greater the risk that it could become so. During checks to date, no issues have been identified that would represent a serious safety concern for the families involved. That said, the safety of our personnel is paramount and it is unacceptable for any family to be living in a home without the necessary checks.
I was made aware of this issue in early May and immediately acted to address the problem, speaking with the FDIS contractors personally, making it clear to our industry partners that we expect this backlog to be cleared, less any exceptional cases, by the end of June at the latest and preferably sooner.
Although not a statutory requirement, the Ministry of Defence also requires its accommodation contractors to maintain current certificates on unoccupied homes—minimising the safety risk to neighbours or those required to visit for maintenance purposes. It is anticipated that all these unoccupied military homes will have up to date gas safety certificates by mid-July.
Finally, all electrical safety certificates should be up to date by the end of August.
One immediate lesson that has emerged is the need for improved communications. Until now contractors had relied on email to notify residents of upcoming checks. It appears that, for numerous reasons, these were not always seen in enough time to ensure that someone was available at the property.
That has now changed with contractors contacting families through letters, by telephone and through house calls. Instead of the usual individual house appointments, gas engineers have been attending military housing estates on nominated days and, supported by the military chain of command where necessary, have moved between homes to carry out the required inspections.
Service personnel have been notified in advance of these changes and are working closely with the military chain of command and our industry partners to ensure staff balance the need for availability with operational demands. If a service person living in SFA has not received a letter notifying them of this process, they can be assured their home is not in scope.
This is not the first time issues have been raised about military accommodation. Problems will always arise to some degree when you are dealing with an estate of this size and scale and with residents whose job by its very nature is demanding and time constraining. Nonetheless, we must do better. Since Amey and VIVO have not met the acceptable level of performance in this case, the relevant performance credit for fixed and variable profit for the service period has been withheld.
There are signs of improvement, but we are closely monitoring the performance of our contractors over the coming weeks to see the deadlines are met and I receive regular updates on progress.
We are also putting in place a lessons learned process for the medium and long-term. Specifically, what can we learn from the failures here that we can apply to future contracts to avoid similar mistakes.
The safety of our personnel remains our top priority. We rely on them to keep us safe and they rely on us to provide them with safe homes.
[HCWS867]
Armoured Cavalry Programme: Sheldon Review
James Cartlidge Excerpts(1 year, 5 months ago)
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The Minister for Defence Procurement (James Cartlidge)
With permission, Madam Deputy Speaker, I would like to make a statement to update the House on the review conducted by Clive Sheldon KC on the lessons to be learned from the armoured cavalry programme, which is the Army programme centred on the Ajax vehicles. The Defence Secretary has previously acknowledged that the programme was a troubled programme. Albeit that he has more recently announced that it has turned a corner, it is against the backdrop of concerns he had about the programme, and those of this House about what was known at the time of publishing the integrated review, that he commissioned an independent review by a senior legal figure to investigate the circumstances.
In May last year, Clive Sheldon KC was appointed to lead a lessons learned review into the armoured cavalry programme. The review’s terms of reference were to
“identify lessons and make recommendations to help Ministry of Defence (MOD) deliver major programmes more effectively in future, with a particular focus on how MOD shares and elevates issues across the Department.”
An earlier Ministry of Defence report, by David King, specifically relating to the health and safety concerns about noise and vibration, was published in December 2021. We continue to make good progress on implementing the recommendations from that report, some of which are echoed in Mr Sheldon’s review.
Mr Sheldon submitted his report to Ministers on 19 May, and I am today publishing that report, unredacted, on gov.uk, and placing a copy in the Library of the House. I wish to formally thank Mr Sheldon and his team for the painstaking work that they have undertaken to enable us to better understand how the MOD can improve the governance, culture and leadership of our major programmes. They interviewed some 70 people and considered tens of thousands of pages of evidence.
The resulting report makes for difficult reading, highlighting a number of systemic, cultural and institutional problems across several areas of the Department. These problems include: fragmented relationships and the conflicting priorities of the senior responsible owner role. It also points to a reticence to raise, and occasionally by seniors to listen to, genuine problems in a timely, evidenced manner.
We accept these findings and most of Mr Sheldon’s 24 formal recommendations, with 15 accepted and nine accepted in principle. Crucially, the review did not find that either Ministers or Parliament were misled. Equally, the review team did not see any evidence of misconduct by any individual, let alone gross misconduct, and nothing that would justify disciplinary action. It is, though, true that many of the behaviours highlighted in the report are far from ideal, but in many cases they have already been recognised and acted on, both specifically on the armoured cavalry programme as well as across the Department.
Where work is not already under way to implement a recommendation, we commit to making the necessary changes at pace. In the interest of time, Madam Deputy Speaker, I will address the recommendations in the themes set out by Mr Sheldon in his executive summary, rather than going through each of the recommendations.
A number of recommendations relate to MOD’s internal relationships, including with the Defence Science and Technology Laboratory. Considerable effort has already been made to address these issues within and beyond the Ajax programme. This has resulted in much improved working and reporting arrangements, in particular with the Defence Equipment & Support organisation and also the newly established acquisition safety cell that advises the Investment Approvals Committee on equipment safety matters. Escalation routes also exist for DSTL through the chief science officer where concerns are not acted on.
Another area of focus is SROs. I know that many colleagues are interested in this point. We fully agree with the need to improve how senior responsible owners are supported and much work has gone into upskilling and supporting SROs, ensuring that they have the time and space to focus on delivering their programmes and can build skills through the Major Projects Leadership Academy.
Today, four in every five of our major project SROs are committing at least half their time to leading their programmes—half the Army’s 19 SROs dedicate 100% of their time. We also agree in principle with Mr Sheldon’s presumption for a minimum tenure, subject to compatibility with employment law.
Finally, the report comments extensively on a culture that led to issues not being escalated and makes recommendations to improve that and the flow of information. Transparency has improved since the period of this report. For Ajax, there are detailed updates through the SRO to Ministers that ensure the potential issues are exposed early should they arise in the future. Processes will be further strengthened through the defence acquisition operating model and guidance. Work is also under way to implement a project delivery data strategy to strengthen the use of data to both support performance reporting and assist in early identification of issues. Of course, the main aim of commissioning this review was to learn lessons to improve procurement—not just on Ajax, but across the MOD’s programmes.
Ultimately, the core of our intent is to ensure that the equipment we procure for the British armed forces is of the highest possible standard and, furthermore, that our service personnel have faith in the system and the taxpayer has faith in our spending of money from the public purse. Quite simply, we need to deliver change across the Department, turning widespread desire for acquisition reform into tangible reality, in particular driving increased pace and agility into acquisition, so that we can keep pace with technology and maintain our competitive edge.
Although I recognise the many challenges in this programme to date and the need to learn lessons, I would stress that there is already intense work under way in the Department—especially at DE&S—to improve performance, with encouraging signs. For example, between December 2020 to December 2022 we saw a reduction from 6.1 years to 5.1 years in the time that it takes to go from outline business case to delivering equipment into the hands of our armed forces.
In further positive news, I hope the House will welcome the significant progress made to recover the Ajax programme. I can confirm that, as of Tuesday afternoon, the Household Cavalry has been undergoing standard Army field training on Salisbury plain in a range of Ajax vehicles. Focused on individual and crew training, this step marks the restarting of British Army training on these sophisticated vehicles, and I hope underlines that this project really has turned the corner. Indeed, last Friday I had the great privilege of visiting Bovington to experience the Ajax vehicle at first hand.
I am pleased to report that the soldiers I met described the vehicle and its capabilities as “night and day”—a phrase used repeatedly—compared with their current equipment. In describing Ajax’s strengths, the soldiers I spoke to emphasised the platform’s high mobility, increased firepower from the new cannon and a highly sophisticated sensor suite that really helps them do their job, representing in totality a very real and positive step change in capability—all packaged in a vehicle with high levels of crew protection and survivability. As training increases across other field Army units on the 44 vehicles already delivered, in parallel General Dynamics’s personnel in Wales continue to run their production lines to build the operationally deployable vehicles, with the end goal of 589 fully operational vehicles by 2029.
To conclude, I reiterate my gratitude to Mr Sheldon and his team for their considerable efforts and for distilling his findings into clear lessons and recommendations for the future. Our focus now is on understanding and applying those lessons, ensuring that they are implemented in the armoured cavalry and other major defence programmes, as well as ensuring that we deliver the game-changing capability that Ajax will provide to the British Army as quickly as possible. I commend this statement to the House.
Chris Evans (Islwyn) (Lab/Co-op)
Before I start, if you will allow me, Madam Deputy Speaker, I want to pay tribute to Glenda Jackson, our former colleague, given the sad news that she recently passed away. She was a doughty champion for social justice and was the greatest actor of this or any other generation. I am sure further tributes will be paid in the coming days.
What the Sheldon review has shown without a shadow of a doubt is that Ajax is the biggest procurement failure for a decade. The review is beyond damning. For a report to state,
“Reporting was at times lacking, or unclear, or overly optimistic. That led to senior personnel and Ministers being surprised to discover in late 2020 and early 2021 that the programme was at much greater risk than they had appreciated”,
is frankly embarrassing.
There is no place to hide any longer. The failure to manage this contract was on this Conservative Government’s watch. It was they who allowed the relationship with General Dynamics to break down to such an extent that every time Ajax was mentioned, here or in the press, there was fevered speculation that the contract was about to be cancelled. That has caused anxiety for the Army and above all for the workers in General Dynamics in both Merthyr Tydfil and Oakdale in my own Islwyn constituency. Even the threat of losing 400 jobs would be devastating for the south Wales economy.
This programme has cost £5.5 billion and has been running for 13 years, but has yet to deliver one deployable vehicle. If this was the private sector, heads would roll, so I ask the Minister this: has any action been taken against anyone responsible for this mess? What new procedures have already been put in place on other major programmes to stop similar mistakes happening? Ministers must ensure that our NATO obligations are met in full, but, whether it is Ajax, delays to Wedgetail or a modern war-fighting division, NATO must have concerns. Have any been raised with the Government about Ajax?
I well remember the sense of excitement from workers at Oakdale when this contract was signed in 2010, just after I was elected. The Ajax contract was then labelled a game changer, not only for south Wales, but for the Army. It is truly sad that we have arrived at a point where Ajax has become a byword for waste and incompetence.
Workers at General Dynamics should have been listened to, but they were not. There was a
“lack of appreciation of diverse and contrary voices, especially from those working on the ‘shopfloor’. These voices were not fully included, and were too easily dismissed.”
Those are not my words, but the words of the report. Perhaps if workers had been listened to, we would not be standing here now.
As the Minister knows, Ajax is not an isolated case: 37 out of 39 defence equipment contracts being run by the Ministry of Defence are marked red or amber by the National Audit Office. That includes Morpheus, which is extremely important to our armed forces. Have the problems with that programme’s communications system been fixed, or are they unfixable? What contingency plans are being made for Morpheus?
For a contract as important as Ajax, with so much speculation around it, it is amazing that we have not had an oral statement on Ajax since December 2021. For too long, the Government have avoided scrutiny on this issue. On this and other future contracts, will the Minister commit to giving regular updates to the House? We are, after all, ensuring soldiers’ safety—the most important thing about the contract—and spending taxpayers’ money. I find myself in agreement with the Minister when he says that change has to come. It is not a moment too soon.
James Cartlidge
I begin by agreeing with the hon. Gentleman on Glenda Jackson; I do not think she was in the House when I was here, but she was an amazing actress and I join in his sentiments and echo them entirely.
I recognise that the hon. Gentleman is not just the shadow spokesman but has a clear constituency interest, and I respect that. He talks about fevered speculation and the impact on the workforce, and I totally understand that. We do not want to see that. He talks about coming to the House: I am here today to be absolutely clear with everyone about the latest position. In fact, my colleague the Paymaster General regularly updated the House on the position around Ajax when he was the Minister. My predecessor, now the Lord Chancellor, also issued a written statement earlier this year that was very detailed about the programme, so I think we have been consistent in updating the House.
On some of the hon. Gentleman’s specific questions, he asked about action on individuals. What we said when commissioning this review was that disciplinary action would be taken only if there was evidence of gross misconduct, and Mr Sheldon found no evidence of misconduct, let alone gross misconduct. That is the clear reason why individual action has not been taken.
In terms of action across programmes, I point the hon. Gentleman to the very significant investment by the Army of £70 million over the next 10 years in Army procurement programmes, including in the past two years a doubling in the number of SROs and a doubling of the amount of time that SROs spend on their responsible major projects. Those are significant investments.
I also point out to the hon. Gentleman some of the improvements we have seen. I accept that we need to go further but, if I may draw a contrast, this is not the first review of acquisition. Bernard Gray issued an independent “Review of Acquisition for the Secretary of State for Defence” in 2009, which described a poorly performing procurement system. That review found that
“the average programme overruns by 80% or c.5 years from the time specified at initial approval through to in service dates”,
and that was under a previous Government.
These problems have been around for some time and it is disappointing. I have pointed to the improvements we have seen, but let me be absolutely clear: the ultimate reason we have this report is to learn lessons and the way we respond to it is to deliver a fundamentally better acquisition system. I totally agree with the hon. Gentleman on that and I hope we can all work together to that end.
Madam Deputy Speaker (Dame Rosie Winterton)
I would like to just take this opportunity to add my thoughts about Glenda Jackson, as I can see there are colleagues in the Chamber who were here in the House at the same time as her. She was a wonderful colleague and a great Minister, and I think we all want to send our condolences to her family. I call the Chair of the Defence Committee.
Mr Tobias Ellwood (Bournemouth East) (Con)
May I immediately associate myself with your kind words about Glenda Jackson, Madam Deputy Speaker?
We now have in the Chamber not one, but three current or former procurement Ministers who bear the scars of this project. I am pleased that we are able to discuss the matter so openly and I commend the recent work that the MOD has done to get on top of the issue.
Ajax is now a case study that the MOD and DNS should use on how not to do procurement. This is all about the British Army’s recce vehicle. The current one being used, the Scimitar, was introduced in 1971. It is good to hear that the soldiers the Minister met said that the replacement is better than the last—that is brilliant, because it was built in 1971. Ajax’s journey has been miserable. It started in 2010 and the delivery date was 2017, yet it is not expected to enter service until 2030. Something very serious has gone wrong.
I absolutely welcome Clive Sheldon’s report. The Committee will look into that in more detail and, rather fortuitously, a Sub-Committee study on procurement, by my right hon. Friend the Member for Rayleigh and Wickford (Mr Francois), is currently under way. I am sure that he will have more words on how we will digest the report in more detail.
The Minister covered some of the issues. Concerns include the relationships between different entities within, or associated with, the MOD. The senior responsible officer has been criticised for not being a single point of contact or owning the actual project itself but having to have a number of projects going concurrently. Concerns got stuck because of people taking a rigid view of their remits. It is not just with Ajax that there is a problem; there is also with the land warfare capability. We have similar problems with the main battle tank and the armoured fighting vehicle. I hope that those problems will be addressed when the defence Command Paper comes out.
James Cartlidge
I am grateful to my right hon. Friend the Chairman of the Select Committee. Of course, we are absolutely committed to engaging with his Committee and, indeed, with the Sub-Committee, before which I will appear next week. I was born in 1974. He makes a striking point about the existing vehicle being from 1971—it is the same age as my elder brother. I take his point that one might therefore expect servicemen to say that it is night and day.
I put great store by meeting those on the frontline, and I will always continue to do that. It was a great privilege to go to Bovington. One of the soldiers I sat next to in the Ares version had been in a Challenger 2 when it was hit by an IED—I think it was in Iraq or Afghanistan; he did not say. He felt confidence in the protection. It is so important that we interact with the soldiers on the frontline. Ultimately, that is the point: we want to deliver a better acquisitions system for them and I look forward to working with my right hon. Friend’s Committee to that end.
James Cartlidge
I did not have the pleasure of appearing before the hon. Gentleman in the Select Committee. Obviously, we bring forward this capability to ensure that it can add huge capability on the frontline when it really matters—that is what it is being tested for. That is why it is really good news that the Army is now training on that vehicle at Salisbury Plain. Of course, that has happened much later than we wanted. That is why we are here and have the Sheldon report. Ultimately, we want to improve our acquisitions system, but procurement can be complex, even for simple things such as ferries, as the Scottish Government have themselves discovered.
Mr Mark Francois (Rayleigh and Wickford) (Con)
The Ajax programme has been an absolute debacle, first initiated in 2010. Thirteen years and some £4 billion later, we still do not have a new armoured vehicle in frontline service. We will not have it until late 2025, and it will not be fully in service until 2030. This report starkly reveals in exquisite, agonising detail just how massively bureaucratic and broken the MOD’s procurement really is. With war under way in Ukraine, will the Minister assure the House that he is now genuinely personally committed to root-and-branch reform of how we buy military equipment in this country? The taxpayer and our armed forces deserve no less.
James Cartlidge
It is no exaggeration to say that no one in this Chamber has greater passion on the subject of procurement and acquisition reform than my right hon. Friend. I look forward to appearing before his Sub-Committee next week to discuss the important role of Defence Equipment and Support, on which, of course, so much of the report is focused. He is absolutely right: we need fundamentally to improve acquisition. A key reason for that is technology. We have to have a system that is faster, leaner and more agile so that we can respond more quickly to evolving technology. It must be self-evident to us all from the theatre in Ukraine—the way that uncrewed systems, one-way attack drones and all the rest of it are being used—that war is changing rapidly and we need to respond to that. Our acquisitions system needs to be able to do so, too.
John Spellar (Warley) (Lab)
May I first express concern that there was in the Minister’s statement no estimate of the extra cost that will be incurred or of the capability gap? To echo the comments of others, the excellent workforce in Merthyr Tydfil are certainly not to blame in this debacle. Indeed, one of the issues highlighted in the report is that they were not listened to when they expressed concerns about the progress of the project. What I am unclear about is why, yet again, no one is to blame. It is probably because Ministers change so quickly that they can evade responsibility. Certainly, the system, and individuals’ roles in it, are to blame.
Why did we need a KC and a year of examination to deal with the blindingly obvious failures in the procurement system, of which this programme is merely an extreme example? Why did Ministers not do a rapid assessment and get on with the job? Will the Minister actually get on with changing the system and not let the natural inertia within the civil service get back to business as usual, as we have seen so often before and as we are seeing again in health with the vaccines programme—this system is failing the British people and, in this case, the British armed forces—or will a successor stand up there and make the same lame excuses in a few months’ time?
James Cartlidge
I have the greatest of respect for the right hon. Gentleman’s experience as a former Defence Minister. There are three points to address. In relation to the cost, it was a fixed-price contract. The point about the workforce is extremely important. As I said in responding to the shadow spokesperson, the hon. Member for Islwyn (Chris Evans), I am seized of that point. The defence sector is incredibly important to every single part of the United Kingdom, but particularly to Wales and in terms of General Dynamics UK.
Finally, the right hon. Gentleman asks why there was the need for all this time and a KC. If only there were such a simple answer. This is incredibly complex territory: 10,000 pages of evidence and 70 people interviewed on complex matters. It has taken time, but we now have the report in front of us and the key thing, as I have said, is to learn the lessons from it.
James Gray (North Wiltshire) (Con)
I welcome the sharp and cleansing light that the report will shine into the shambolic Ajax programme and, by extension, into the whole of the defence procurement programme, which has been a problem—we have been saying so for years. The report shines a light into it. I very much welcome the Minister’s commitment to listening to the lessons learned from the report and to change things fundamentally in wider procurement. In that context, will he let us know when the defence Command Paper is due out—it will presumably reflect some of those lessons—and, in particular, whether a defence industrial strategy will be published separately or alongside the Command Paper, and whether it will genuinely reflect the changes that he intends to make?
James Cartlidge
I am grateful to my hon. Friend. We are hoping to publish the Command Paper imminently, and it is certainly my hope that it will contain important statements on the issue of acquisition reform. For me, it is an absolute priority; obviously, I would say that as the Minister for Defence Procurement.
My hon. Friend referred to the defence and security industrial strategy. The key point about that is that we see the defence industry as part of our military capability. That has never been more the case, because of the urgent strategy that we need to get replenishment under way due to the stocks we have gifted—for entirely the right reasons—to Ukraine. He makes a very good point.
Richard Foord (Tiverton and Honiton) (LD)
I would like to build on the searching question from the right hon. Member for Warley (John Spellar). The Government announced in March that they would resume payments for Ajax towards the £5.5 billion cost. We had been expecting the CVR(T)––combat vehicle reconnaissance (tracked)—to be retired this year and for Warrior to be retired in 2025, but if Ajax is not to reach full operating capability until 2029 at the earliest, how will the capability gap be closed? If that is by extending Warrior, how much additional taxpayer’s money will be spent on extending the life of Warrior?
James Cartlidge
The hon. Gentleman asks a very good question. Obviously, it is important that the Army is satisfied with the capability it has, so that it can fulfil its key operational requirements. I am assured that that is the case. Inevitably, if there is delay in one capability coming forward, there will be some impact. We estimate that there is a cost of roughly £200 million to extend the life of Warrior and Challenger 2 in response to delay in this programme and the timescale in relation to Boxer coming forward.
Sarah Atherton (Wrexham) (Con)
At its height, the Ajax project supported 850 jobs across Oakdale and Merthyr and a further 22 Welsh small and medium-sized enterprises. That is considerable investment in Wales and a void we cannot easily fill. Paragraph 7.8 of the Sheldon review details a number of examples of personnel feeling that there was not a “psychologically safe” environment in the MOD to raise concerns, as it would be “career limiting”, despite Joint Service Publication 492. This meant that “optimism bias” towards the project succeeding ran riot. How is the Minister going to change the culture, because that is not procedural?
James Cartlidge
My hon. Friend, who speaks with the expertise of a former Army officer and someone who serves on the Defence Committee, has hit the nail on the head in terms of the issue of optimism bias. [Interruption.] Did I say “former Minister”? I correct the record if I said that, but she is certainly on the Defence Committee.
James Cartlidge
I apologise; she is a former Minister. She knows what she is talking about—that is for certain. She made an extremely important point about optimism bias. It may be that I was a bit pessimistic in my answer.
This is a serious point, because Mr Sheldon talks about optimism bias at length. Obviously, the new initial operating capability and full operating capability are much later than we wanted them to be, but I think what happened is that DE&S sat down with General Dynamics and said, “This time we’ve got to be realistic. Let’s have a programme we can actually deliver to.” I know it is disappointing, but that is the key thing; we want to actually get this equipment delivered.
My hon. Friend’s point about having psychological confidence to speak up is incredibly important, and she is a champion on that. We conduct the pan-Defence people survey, and the last iteration of the survey asked questions in relation to psychological confidence—are people confident in coming forward and challenging the system? In the last survey, the Army was eight percentage points above the civil service benchmark, so there is improvement happening in this space.
Jim Shannon (Strangford) (DUP)
I thank the Minister for his statement. This report makes for hard reading, and yet the humility with which he has accepted the critique is to be admired in these days of blame-shift. Mistakes were made; that is clear. It is also clear that transparency and efficiency go hand in hand. Will he confirm that the application of these lessons and new procedures will be armed forces-wide and that every officer stationed in Northern Ireland and Wales, and from the top of Scotland to the tip of England, will be made fully aware of the dangers of doing what has been done before and will embrace these changes for the better?
James Cartlidge
It is always a pleasure to receive questions from the hon. Gentleman; we always keep the best until last on the Opposition Benches, in my view. It is a matter of pride for me that I will be going to Northern Ireland to mark Armed Forces Week starting next Saturday, and I am looking forward to that immensely. I can confirm to him that I will not blame-shift; I will take responsibly. I am the Minister for Defence Procurement: I have the responsibility of delivering a better procurement system, and that must apply across the forces, as he rightly says.
James Sunderland (Bracknell) (Con)
Notwithstanding the technical and procurement difficulties that have been reported, and the Sheldon review, which I welcome, Ajax has probably had more TLC than any British-made platform in history. Members may feel free to accuse me of optimism bias, but does the Minister agree that when it is finally rolled off the production line, it will be an excellent platform and fit for export?
James Cartlidge
My hon. Friend speaks with huge experience as a former senior Army officer, and he is absolutely right. I referred to visiting Bovington last Friday. For the soldiers there, Ajax is a step change from the vehicle from 1971, but there is another very serious point. They talked about the extra lethality of the cannon, the manoeuvrability and the amazing sensors in that machine, which gives them such huge oversight of the battlefield. It has great capability.
On my hon. Friend’s final point, as someone who is passionate about exportability and our defence sector exporting around the world, I would like to see it get to that phase, but the good news is that we have got it out there, and the Army is now training on it.
Richard Drax (South Dorset) (Con)
I commend the Minister—a conscientious Minister, if ever there was one—and his predecessor, my right hon. and learned Friend the Member for Cheltenham (Alex Chalk), to whom we have spoken on many occasions in the Defence Committee, on which I sit. I know that they are just as alarmed by this as we all are.
We have to learn the lesson about attention to detail. On our visit to General Dynamics, there were two sets of headphones on the table. One set was used by the civilian operators, and one was used by the military, for which the vehicle was being built. The civilian one had double protection, but the military one did not, so when the military used their headphones, it affected their hearing. That was 10 years after the vehicle had been built. As it took another while to drive this vehicle, as we can no longer afford to do so, it took another year before the fault was eventually found. It is attention to detail, quite apart from everything else, that we need, to ensure that this never happens again.
James Cartlidge
My hon. Friend makes an excellent point and reminds us about the background of the noise and vibration issues. It is my understanding that part of that was because this vehicle came forward in the wake of Iraq and Afghanistan, and had what is called a rigid body design, which has its own characteristics of noise and vibration. He is right to highlight the issue of the headphones. We do not believe that the first headset that was used was responsible for those noise and vibration issues, but the good thing is that we worked with General Dynamics and brought in the second headset. That is the one I wore one on Friday. To put it crudely, there is a smaller black one that goes right into your ears—a bit like the sort of thing we are given when we go on a factory visit—and then there are the bigger external ones that sit on top of the helmet. It was very effective.
This has been a very difficult programme, and I have been completely open in acknowledging that to the House, but I believe that we can use this moment as an opportunity genuinely to improve our acquisition system.
Mr Deputy Speaker (Mr Nigel Evans)
I thank the Minister for his statement and for responding to questions for over half an hour.
Defence Estate Update
James Cartlidge Excerpts(1 year, 6 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Minister for Defence Procurement (James Cartlidge)
The Ministry of Defence (MOD) continues to review its estate with a view to securing better value for money. The MOD therefore welcomes the High Court’s decision dismissing the recent challenges from Annington.
In 1996, the Ministry of Defence, in what was effectively a sale and leaseback agreement, granted a 999-year lease of over 55,000 service family accommodation homes to Annington Property Ltd and immediately leased the homes back on 200-year underleases. In 2018, the National Audit Office concluded in its review of the arrangements that taxpayers are between £2.2 billion and £4.2 billion worse off as a result of the sale and leaseback arrangements.
In January 2022, the then Minister for Defence Procurement informed the House of the steps MOD was taking to explore the extent of its statutory leasehold enfranchisement rights. MOD sought to test these rights through the issuing of enfranchisement notices for eight properties. These notices were designed to explore the extent of the MOD’s statutory rights, which are available to all qualifying leaseholders, and to help determine whether enfranchisement can secure better value for taxpayers. Annington was aware that the MOD could seek to enfranchise and had previously referred to that possibility in public facing documents.
Since then, claims have been brought against the Secretary of State for Defence by Annington, Annington Limited and Annington Holdings (Guernsey) Limited in respect of these test notices on both private law—declaratory—and public law—judicial review—grounds in relation to the notices and MOD’s right to enfranchise more generally. The ensuing trial was held in February 2023 and judgment has now been handed down.
We welcome the decision of the High Court, which has dismissed all the challenges brought against MOD. The High Court has confirmed that the MOD acted lawfully, that the MOD was entitled to issue the enfranchisement notices and that those enfranchisement notices were valid.
Given our obligations to secure value for money, this decision has the potential to provide the MOD with more flexibility in the management of its estate to the benefit of service personnel and their families and potentially wider Government objectives. I note three points:
Firstly, no formal decision has been taken on further enfranchisement of the estate, but the MOD will consider further the potential implications for securing better value for money for the taxpayer in light of the High Court’s findings. The MOD will consider relevant factors, including the ongoing operational requirement for the properties and the economic case for enfranchisement, which may differ between sites.
Second, if the MOD does pursue enfranchisement of other units and the parties cannot agree the enfranchisement premium, the relevant premium will be determined by an independent tribunal in accordance with the relevant legislation by reference to a market value, with both parties having the opportunity to present their respective views. If the tribunal were to determine that the cost of enfranchising the units is less than the present value of the rental liabilities, then enfranchisement is likely to represent value for money for taxpayers.
Third, we continue to work with Annington and, most importantly, the MOD is focused on providing good quality, desirable homes for service personnel and their families.
[HCWS789]
Oral Answers to Questions
James Cartlidge Excerpts(1 year, 6 months ago)
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Christian Wakeford (Bury South) (Lab)
The Minister for Defence Procurement (James Cartlidge)
In the last seven years, the Ministry of Defence has invested more than £936 million in service family accommodation improvements. Currently, just under 97% of the MOD SFA meets or exceeds the Government’s decent homes standard. Only those properties are allocated to service families.
Christian Wakeford
Over the last couple of years, I have been fortunate enough to visit bases across the UK and speak to many servicemen and servicewomen. The recurring theme is that accommodation is beyond poor. Having seen family accommodation at first hand, with cracks and mould on the walls of bedrooms, I have to agree. The Minister responded to an urgent question on this topic on 20 December, so what has his Department done since then to improve this awful situation for our heroes and their families?
James Cartlidge
We all want to see our armed forces service personnel living in good-quality accommodation. The key to that is investment, of course, which is why I hope that the hon. Gentleman will recognise and welcome the huge investment that we have put into that space: £936 million in the last seven years, as I said, including £185 million in 2022-23 alone, and I can confirm that we are investing at least a further £1.8 billion over the next 10 years.
Mr Ranil Jayawardena (North East Hampshire) (Con)
I welcome the investment that has been put in over the last seven years, which my hon. Friend the Minister mentions, but he is of course dealing with a backlog from the last 20 years. Will he visit RAF Odiham in my constituency to see some of the problems caused by poor contractors and to discuss solutions with the service families there?
James Cartlidge
I would be more than happy to visit—this is an important issue. I recognise the challenges. It is a complex issue that has built up over many years, as my right hon. Friend says, but we are putting the investment in place and are determined to deal with it.
Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)
In March, Labour launched Homes Fit for Heroes, our campaign to highlight the failings of defence housing for service personnel. One member of the armed forces who has served for more than two decades told us that they feel pushed to leave the Army because their house is in such a state of disrepair that they described it as “unfit to live in”. The Government could have solved that crisis over the past 13 years if they had wanted to, but it is getting worse and worse, with personnel leaving because of poor housing. Will this problem be fixed before the next general election, or will the Minister leave it to the next Labour Government to clean up this Tory mess?
James Cartlidge
It is a pleasure to engage with the Labour Defence Front Bench for the first time. It is interesting that the hon. Gentleman does not welcome the significant investment that we have put in place. Of course, we recognise that we have had long-standing issues with mould and so on. I emphasise that the maintenance backlog from December is now down by 75%. He might want to reflect on the fact that his party’s Government oversaw private finance initiative contracts for service properties in Bristol, Bath and Portsmouth, which, I can confirm, had a cost of £25,000 per home whether or not they were occupied.
Janet Daby (Lewisham East) (Lab)
Marco Longhi (Dudley North) (Con)
The Minister for Defence Procurement (James Cartlidge)
The UK scores highly in the global rankings for defence exports, which create jobs and prosperity across the country, building the industrial resilience and capacity we need for our national security. Through the defence and security industrial strategy, we and the industry are strengthening our position by diversifying our exports and target markets, and by collaborating more closely.
Paul Holmes
I welcome the Department’s announcement that both Germany and the United Kingdom will work together on the development of advanced armour-piercing tank ammunition. Given that these new rounds will be able to be fired from both British and German tanks, supporting compatibility within NATO, what export potential does this new capability have?
James Cartlidge
I am grateful to my hon. Friend, who is right to highlight this important collaboration with one of our major allies. Enhanced kinetic energy munitions are a key part of the Challenger 3 and Leopard 2 main battle tanks programmes, and will deliver battle-winning capabilities to UK and German armed forces. I am confident that their advanced performance will be recognised as world-leading, and their export potential to NATO and other allies will be promoted by the MOD, as ever in close partnership with the Department for Business and Trade.
Marco Longhi
I congratulate the Defence Secretary and all Ministers past and present who may have played their part in securing the £1.9 billion export deal with Poland for missiles. Does he agree that significantly strengthening our defence and security relationship with Brazil can increase exports to that country, too?
James Cartlidge
I am grateful to my hon. Friend, and he is absolutely right to celebrate a great British success story. The MBDA British-designed common anti-air modular missile is the latest-generation air defence system in service with the Royal Navy and British Army; it can engage targets up to 25 km away and is capable of hitting a tennis ball-sized object travelling beyond the speed of sound. It is already deployed in Poland to protect its airspace following Putin’s barbaric invasion of Ukraine. We work closely with the Department for Business and Trade in supporting Energy UK’s export campaign through dedicated teams. This network is supporting delivery of numerous CAMM campaigns, and I can confirm to my hon. Friend that we have a positive defence relationship with Brazil: he makes a very good point, and the MOD continues to work with the Brazilian Ministry of Defence and armed forces on how we and UK industry can support their equipment capability shortfalls and development requirements.
Henry Smith (Crawley) (Con)
Neale Hanvey (Kirkcaldy and Cowdenbeath) (Alba)
The Minister for Defence Procurement (James Cartlidge)
The Dreadnought submarine programme remains within overall budget and on track for the first of class, HMS Dreadnought, to enter service in the early 2030s. As the programme is in its preliminary phases, it is too early to provide cost estimates for the replacement warhead programme.
Neale Hanvey
The financial cost of weapons of mass destruction is one thing; the potential human cost from radiation leaks is quite another. On 7 November last year, I raised concerns from a whistleblower about a serious radiation breach at Coulport on Loch Long. The Secretary of State promised that he would provide a detailed written response. Despite my persistence, six months later I have still not had a reply, other than a leak to the media saying:
“The alleged radiation incident referred to…did not”
take place. Will the Secretary of State confirm today from the Dispatch Box whether HMNB Clyde staff were moved from building 201 in Coulport to building 41 elsewhere due to a serious radiation breach?
James Cartlidge
Obviously, I will have to look into the matter and will write to the hon. Gentleman further. I would make one point. He talked about the other costs. If I may, while the SNP has a merely quirky position of unilateral nuclear disarmament but supposedly remaining in NATO, the position of the Alba party is both nuclear disarmament and withdrawal from NATO. What would be the cost of that policy? In the light of the current situation where Russia has invaded Ukraine, what would happen if we were to announce our withdrawal from NATO?
Mr Speaker
Order. That was a long answer, which did not really answer the question. What I am more concerned about is that there has not been a reply to a letter that was put in six months ago. Can somebody check that? I am bothered about MPs getting replies from Ministers, not scoring points.
Dan Jarvis (Barnsley Central) (Lab)
The Minister for Defence Procurement (James Cartlidge)
We are driving the delivery of capability to the frontline. When requirements, budget and risk are clear, we have proven our ability to deliver. The majority of our programmes are on or ahead of time and budget. The Ministry of Defence has set out an affordable 10-year equipment plan to ensure that our armed forces are being given what they need, while living within our means.
Dan Jarvis (Barnsley Central) (Lab)
I heard what the Secretary of State said about Atlas. He has previously given me a commitment that there will be no loss of capability, but today, Deborah Haynes at Sky News is reporting that the UK will be left dangerously exposed when the C-130J is cut next month. That comes amid concerns that its successor, the Atlas A400M, has yet to be cleared to perform the niche but mission-critical functions of the C-130J. Will the Minister give an absolute assurance that our defence procurement system will ensure no loss of operational capability?
James Cartlidge
I am more than happy to give the hon. Gentleman that assurance. There is a great deal of affection for the Hercules, but to go back to what the Secretary of State said about the recent performance in the important operation in Sudan, the largest number of evacuees that the Hercules carried out from Sudan was 143. The largest number in an A400M was about 100 more than that.
James Cartlidge
I look to my left and my right and I see continuity. I am grateful to follow in the steps of my right hon. and learned Friend the Member for Cheltenham (Alex Chalk), now Lord Chancellor and Secretary of State for Justice, who did a sterling job. To give one example, the hon. Member for Llanelli (Dame Nia Griffith) mentioned the issue of replenishment. I recently had the privilege of visiting British troops training Ukrainian forces, as referred to by the Chair of the Select Committee, my right hon. Friend the Member for Bournemouth East (Mr Ellwood). We have to remember, it is not just that we are training 15,000 personnel to go back out to Ukraine and defend their homeland; every time they go we are giving them high-quality kit. There are lessons to learn from what has happened in Ukraine, but we should be incredibly proud of that effort. We have procured at pace, gifted in kind and ensured that Ukraine has been able to sustain its fight to this day.
Dave Doogan
Well, that’s crystal clear. One of the things the Minister said when talking about Ukraine, in answer to my question about procurement, was about replenishment. He will know, even in his short tenure in the job, that small and medium-sized enterprises are the lifeblood of any military-industrial complex. Can he explain why, in answer to my parliamentary question a couple of weeks ago asking if the Ministry of Defence would attend a public sector meet-the-buyer event in Edinburgh, which is attended by other UK Government Departments, the MOD—a £50 billion-resourced organisation—cited a lack of resource as the reason it could not attend? Is that a special kind of indifference that is reserved for Scotland?
James Cartlidge
Of course not. I am happy to look into that. I want to assure the hon. Gentleman that the latest figures show that the proportion that the MOD spends with SMEs has increased from 19.3% in 2018-19 to 23% in 2021. I ran an SME before coming to this place—it was not a defence SME but I know how important they are. They give us creativity and innovation, and I want to work with them and the primes in delivering the British defence industry, because we see that as a key part of our own defence capability.
Jason McCartney (Colne Valley) (Con)
Simon Baynes (Clwyd South) (Con)
James Cartlidge
Wales plays an integral part in all aspects of the UK’s defence policy, with a number of the MOD’s major suppliers and small and medium-sized enterprises having a presence there. In 2021, for example, the MOD awarded a £110 million contract to the Raytheon UK plant in north Wales, which is providing the RAF with one of the world’s most modern and capable intelligence-gathering assets. We are also working with the Welsh Government and the Defence Electronics and Components Agency to create an advanced technology research centre at MOD Sealand. The centre will develop cutting-edge sovereign capability to support international collaboration, job sustainment and skills retention while meeting our changing defence requirements.
Kim Johnson (Liverpool, Riverside) (Lab)
I would like to thank the PCS union and the staff at Defence Business Services for their work on negotiating important wins for disabled and non-mobile staff, who have been offered flexible and hybrid working as a reasonable adjustment. Not forcing staff to move without their agreement, along with the creation of a voluntary release package, is a positive step. Can the Secretary of State commit to ongoing negotiations with PCS and the Liverpool staff to keep their terms under review, to ensure that staff are given the support necessary to keep their jobs under reasonable conditions?
James Cartlidge
I am glad that the hon. Lady recognises that these have been constructive negotiations. She mentioned the offer of flexible working and, as she knows, there have to date been no compulsory redundancies. I would just stress that, even with the £30 million cost of the new site, there will be a total £40 million saving, so this is good value for taxpayers as well as a good deal for the workforce.
Robert Courts (Witney) (Con)
I welcome the new Minister to his place. It was great of him to make his first visit to Carterton recently, where we discussed the upgrading of existing MOD housing and the purchase of new housing. I look forward to discussing that with him further following the Defence sub-Committee report that will be produced shortly. He also saw the large brownfield site known as REEMA North, where MOD housing has been demolished and not yet replaced because the money has not been found to do it. We always talk about prioritising brownfield land. This is a prime site where housing is much needed but the money has not yet been found. Will he work with me to ensure that we not only use this brownfield land but protect West Oxfordshire’s land supply and give the RAF the homes that it needs?
James Cartlidge
I very much enjoyed my visit to Brize Norton. It was actually my second visit after Abbey Wood. Just to be clear, we remain fully committed to the development of new housing for service personnel at the REEMA site. We are in discussions with industry partners to facilitate this, but given the time that has elapsed, I am happy to continue to engage with my hon. Friend, who I know is a champion of his local service personnel, many of whom serve in the RAF. I am more than happy to stay engaged with him.
Alex Norris (Nottingham North) (Lab/Co-op)
In March, 8,000 Afghan relocations and assistance policy scheme families were given eviction notices from their hotel accommodation by the Home Office. What assurances can we hear from Defence Ministers that these people will not become homeless?