Ukraine
Jeremy Quin Excerpts(2 years, 6 months ago)
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The Minister for Defence Procurement (Jeremy Quin)
I beg to move,
That this House has considered Ukraine.
It has been exactly one month since the Secretary of State for Defence last came to this House to provide an update on Putin’s brutal, unprovoked and illegal invasion. In that time, Russian troops have failed to take Kyiv and their initial strategic plans have been thrown into complete disarray. They have suffered heavy losses on a par with those in their nine-year conflict in Afghanistan, including more than 15,000 personnel and hundreds of tanks, vehicles and helicopters. They have also strengthened the resolve of the international community in a way that has not been seen for decades.
Rather than back down, however, Putin has refocused efforts on the eastern Donbas in a bid to entrench control of a land bridge with Crimea to the south. The people paying the tragic cost of his unrelenting war are still the Ukrainian men, women and children who have been bombed in hospitals, blown up in schools and bombarded in railway stations. The number of Ukrainian civilians killed has risen to more than 3,500—including, I regret to say, 250 children—and up to 100 Ukrainian troops are reported to be dying in the battle for the Donbas every day.
The latest intelligence shows that Putin’s troops are currently bombarding and encircling cities including Severodonetsk, Lysychansk and Rubizhne, while in Mariupol, the last Ukrainian fighters have now been evacuated from the steelworks after more than 10 weeks of brave resistance. It is extremely concerning to hear appalling comments about those gallant defenders from certain Russian MPs. Russia must treat these soldiers in full accordance with the Geneva convention.
In the Black sea, Russia is continuing to block shipping lanes and reinforce its troops on Snake Island, but it is clear that their momentum has slowed, and in places Ukrainian forces are beginning to push them back to their borders. In Kharkiv, for instance, the fact that three quarters of the 1.4 million inhabitants are Russian speakers has not had one iota of impact on their resolve. Instead, Putin’s forces have been unceremoniously driven out of Ukraine’s second city—not just a major strategic blow for the Kremlin, but a symbolic one, as it peddled the lie that Russian invaders would be welcomed with open arms.
Sir Bernard Jenkin (Harwich and North Essex) (Con)
My hon. Friend will be aware that the blockade of the Black sea is one of the contributory factors to rapidly escalating food prices in global markets. In fact, 26 countries now have export bans on various foodstuffs to protect prices for their own domestic markets. This is now blockading some 15% of the world’s calorie intake, according to The Economist. Are the Government treating the reopening of the food supply from Ukraine as an urgent matter? I appreciate that it is very complex and sensitive, but will the Government confirm that they are attaching extreme urgency to it? Otherwise, we will have more starvation and more famines in some of the poorest countries in the world.
Jeremy Quin
My hon. Friend makes an acute observation. He is absolutely right to draw the House’s attention to the matter, which is of profound concern. We were in a bad situation with food supplies even before war in Ukraine; we are in a worse situation now. My right hon. Friend the Minister for Europe and North America informs me that, unsurprisingly, the matter was discussed at the meeting of G7 Ministers; it has also twice been the subject of conversations between the Prime Minister and President Zelensky. It is very much a focus for the Government, and we are in discussions with our NATO allies in the Black sea and others. It is a complex situation, as my hon. Friend the Member for Harwich and North Essex (Sir Bernard Jenkin) reminds us, but I assure him that we are very focused on it.
Geraint Davies (Swansea West) (Lab/Co-op)
Given the phenomenal impact on world food supplies, the cost of living crisis here, and the forecasts, which are now increasing, that the global economy will shrink by something like £750 billion thanks to this war, why is more not being done to invest in armoury and defence weaponry to basically kick Russia out of Ukraine? I understand that something like £7 billion of military aid has been provided. Is that enough? Should the world not be doing more, in its own self-interest?
Jeremy Quin
I remind the hon. Gentleman that I said at the start of my remarks that the world has never been more united over the past few decades. We have committed more than £1.3 billion of military equipment. The people who are doing the heavy work are the gallant defenders of Ukraine, the members of the Ukrainian armed forces; they are being supplied by this country and by many allies around the world. We have organised two donor conferences; I was at a donor conference earlier this week. Military supplies and defensive equipment are coming in from all over the world, in addition to a vast package of economic sanctions against Russia.
Dr Andrew Murrison (South West Wiltshire) (Con)
The blockade of Odesa is a matter of extreme seriousness. Unless the silos are emptied in the next few weeks, there will be nowhere for the harvest to go. Tens of thousands of people in some of the most vulnerable countries in the world will starve, with all the geopolitical consequences that that will bring. Does that not mean that we need to lift the blockade in Odesa as a matter of urgency? What are we doing to provide Harpoon missiles, for example, to ensure that the ships currently blockading Odesa are dealt with? Unless we can clean up the Black sea so that mines do not pose a threat, we cannot expect insurance companies to insure merchant shipping. That will mean that ships will not leave port.
Jeremy Quin
My right hon. and gallant Friend is right that the situation adds a significant risk to starvation globally, with many of the poorest areas of the world most affected; that has been caused directly as a result of the illegal and brutal invasion by Putin. He is also right that we need to work consistently and hard to get a solution that gets grain out of Ukraine and into world markets; I assure him that we are working on that. I can further assure him that coastal defensive missiles are absolutely a part of the package of equipment that we and others are supporting in Ukraine.
Jeremy Quin
I shall give way to the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone), as he got in first, but then I should make a bit of progress, if that is all right with my hon. Friend the Member for Brigg and Goole (Andrew Percy).
Jamie Stone
The Minister is being extraordinarily generous. As the flip side of what he says about our supplying the Ukrainians with equipment, it would be interesting to know what things are like on the Russian side. The Russians’ shells and missiles will be finite. Have we any knowledge of whether there is a chance that they might start to run short of the kit that they need?
Jeremy Quin
The hon. Gentleman raises a very good point. There is considerable evidence of significant depletion of Russian equipment and stocks. Clearly, ammunition stocks are less visible, but there has been open source reporting about T-62s—tanks that were designed 60 years ago, although some were upgraded in ’83—being brought out of garages. There is significant evidence that Russia is suffering serious depletion, as the fact of 15,000 personnel being killed in the conflict would suggest.
As I am in a generous mood, I shall give way to my hon. Friend the Member for Brigg and Goole if he is still keen to intervene, but then I must make progress.
Andrew Percy
The Minister has highlighted the outrages committed by the Russians. Those outrages include reports of attacks on ambulances and first responders, so I thank him for his work helping us to secure export licences for the battlefield ambulances produced by the brilliant team at the O&H Venari Group ambulance factory in Goole. He knows the project very well: former British military vehicles are converted into battlefield ambulances, 58 of which have been produced so far. They are now in service in Ukraine, so I thank the Minister and his team for their work on securing the export licences. Will he pay tribute to the workers at O&H?
Jeremy Quin
I pay tribute to the company’s workers and to my hon. Friend, who was very assiduous, at all hours of the day, in making certain that Ministers were aware of the project and the need to get those export licences through. I am glad that officials in the two Departments have moved very swiftly to achieve those export licences. The brutality shown by Russian forces in this conflict is shocking. I am glad that we are doing our utmost to support the humanitarian effort in Ukraine, having provided civilian ambulances, battlefield ambulances and simple things such as generators.
We were discussing the fact that Kharkiv was a real and symbolic blow to Russian plans, which we have to believe are coming unstuck. The firing of seven Russian commanders in recent weeks—including the lieutenant general who headed up the invasion of Kharkiv—reeks of a culture of scapegoating and cover-ups, and there is a record of aggression, brutality and incompetence. No wonder the veteran Russian diplomat Boris Bondarev said, as he bravely resigned his post this week, that he had “never been so ashamed” of his country.
At this critical juncture, our aim remains clear: Russia cannot win. We will continue to support our Ukrainian friends, focusing on three key aspects. First, there is the military response, which is about providing a wide range of support to Ukraine so that it can defend itself and its sovereignty. We were the first European country to supply lethal aid, and we have committed to spending at least £1.3 billion on military support. So far, we have delivered in excess of 6,500 anti-tank missiles, many of which have been used successfully to repel columns of tanks, as well as eight air defence systems, including Brimstone and Starstreak missiles—the fastest in the world, travelling at some 2,000 mph. We have also delivered 15 Wolfhound armoured vehicles, which provide increased protection for essential supplies, as well as a small number of armoured Stormer vehicles fitted with Starstreak launchers to further enhance Ukraine’s short-range anti-air capabilities.
Mr Tobias Ellwood (Bournemouth East) (Con)
I commend my hon. Friend for the work that he and the Ministry of Defence have done in supporting the Ukrainian forces in their hour of need. We face a dilemma, in that as we empty our quartermasters’ stores, they need to be replenished. If he needs help persuading the Treasury to give the Ministry of Defence money to make sure that those Starstreaks, next-generation light anti-tank weapons and Brimstones are replenished, please will he get in touch?
Jeremy Quin
I know that the door of my right hon. Friend, the Chair of the Defence Committee, is always open for such discussions. The Treasury has been very clear that we need to replenish our stocks, and that it will support us in ensuring that they are replenished. I can also assure him that we are making certain that we remain well within our tolerances. There are tasks here for which we always need to be ready, and I can assure him that we remain ready for them.
The equipment that we provide must be as effective as possible, so we are training specialist Ukrainian units in its use. Last month, for example, Ukrainian troops learned how to use our armoured fighting vehicles on Salisbury plain, and those vehicles have now started to arrive in Ukraine; the number will build to 120 in total. Our support does not end there. The House will be pleased to hear that the challenge laid down by Putin’s brutal war has been seized by UK industry. I have been delighted by the agility that the UK’s defence sector has shown, working closely with Defence Equipment and Support, in bringing through innovative ideas; in some cases, those ideas literally go from desktop to theatre in a matter of weeks. I am determined to maintain this innovative drive, so that we capture every idea, support the best of them, and then swiftly put the results in the hands of our Ukrainian friends.
Dave Doogan (Angus) (SNP)
Can the Minister set out how support for Ukrainian forces will be updated or augmented to deal with increased and intense artillery bombardment from better supplied Russian forces? They have retreated much closer to their own borders, and their supply lines have greatly opened up. Given that, how can we further support Ukraine in defending itself?
Jeremy Quin
The hon. Gentleman knows that we are doing our utmost to support our Ukrainian friends. There are intense discussions between our Ukrainian friends and the Ministry of Defence at a number of levels, including between myself, my hon. Friend the Minister for the Armed Forces and our opposite numbers in Ukraine. We are ensuring that the equipment that we source to support Ukraine is tailored to its needs and its battle plan in the weeks and months ahead. The hon. Gentleman is right that opportunities may well open up, but I do not for one second underestimate the fierceness of the fight and how intense it is at present in Donbas.
Robert Jenrick (Newark) (Con)
My hon. Friend will be aware that a small number of us in this House have constituents who have been fighting with the Ukrainian armed forces and who are now held in captivity, either by the Russian authorities or their associates. The Foreign, Commonwealth and Development Office is providing a degree of consular support to us and to their families, but could I encourage him and other Ministers to give this priority? I urge them to speak with the British and International Red Cross—I suspect that they will prove to be the best interlocutors—to help secure a satisfactory outcome and good treatment for these individuals, who are British citizens, and to help to secure their speedy release and return either to Ukraine or the United Kingdom.
Jeremy Quin
That is something that we take extremely seriously. These are, of course, British citizens who have been caught up in the conflict, and they will be provided with all possible consular assistance. My right hon. Friend the Minister for Europe and North America has confirmed that, which should come as no surprise to my right hon. Friend the Member for Newark (Robert Jenrick). Although we really do discourage anyone from going to Ukraine in these circumstances, the Ukrainian Government have made it clear that where other nationals have been combatants, they are prisoners of war and should be treated as such, in full compliance with the Geneva convention. That is exactly what we expect of every nation.
In addition to providing lethal and non-lethal equipment, we have been facilitating the delivery of equipment from other countries by convening two international donor conferences and providing logistic support. We have been speaking to partners across eastern Europe to encourage them to donate their former Soviet kit, with which Ukrainians are more familiar. For example, Poland is now donating T-72 tanks to Ukraine in return for a temporary deployment of Challenger 2 tanks from the UK.
At a time of heightened tension, it is vital that we continue to provide reassurance to our NATO allies in eastern Europe. As part of this effort, we have sent Typhoons to Cyprus to patrol south-east European skies, have deployed frigates and destroyers to the eastern Mediterranean and the Baltic sea, and have temporarily doubled our military presence in Estonia to 1,700 personnel. In other words, where Putin wanted less NATO, he is now getting much, much more.
Paul Blomfield (Sheffield Central) (Lab)
There is clearly considerable agreement across the House on these issues. One of the important areas in which we have played our part, and should play our part more, is the provision of refuge for those who are seeking a home away from the conflict. People in Sheffield responded very generously to the Homes for Ukraine scheme, but are expressing enormous frustration at the inability of the Home Office to deliver visas within the timeframe that we would expect. At the beginning of April, when Lord Harrington—for whom I have a high regard—took responsibility for the scheme, he set a public target of 48 hours from when people “download the application form” to when they are given permission to travel. I have constituency cases in which families who applied on 26 March still do not have permission to travel two months later, and it is clear that my experience is shared by Members across the House.
People have told me that they are now applying a second time, particularly when children are involved, because they face such long delays and they have no faith that their original application is still being worked on. Obviously that will only cause further complications and congestion in the system. What assurance can the Minister give me that he will take this up with the Home Office, and that we will do something to meet the obligations we took on, and the ambition that we set, when we launched the Homes for Ukraine scheme?
Jeremy Quin
The hon. Gentleman asked his question very sincerely, and I know that his experience is shared by many Members. As a constituency MP, I have encountered such cases myself.
We are all keen to see these visas processed as soon as possible. As the hon. Gentleman will know, a significant number have been provided—I think it is more than 107,000 now—but I appreciate that that makes no difference to those who are sitting outside Ukraine with diminishing amounts of money, wanting to come to this country and to a home that is desperate to have them and embrace them. I know that the Under-Secretary of State for the Home Department—my hon. Friend the Member for Torbay (Kevin Foster), who is sitting beside me—recognises that there are issues relating to children in particular; the Home Office is working assiduously to try to get on top of all these issues. In my personal experience, the system seems to be getting faster and better, but we are not there yet, and that work continues to be done by my friends in the Home Office.
Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)
Before the Minister moves on to the subject of NATO commitments, may I raise the subject of direct support for Ukraine? As he knows, it has historical debt problems, and the invasion will obviously have a huge economic impact; the statistics are clear to us all. Can the Minister say something about the co-ordination of direct international financial support for Ukraine, and how we can keep the country solvent during a time when that is a very pressing matter for it?
Jeremy Quin
We have supplied significant funds directly to Ukraine to help it through this incredibly difficult period. I cannot lay my hands on the exact amount, but the House may be blessed with the figure later in my remarks. We are also working with the G7 and others. Clearly, Ukraine is suffering from extraordinary problems at present, and the international community recognises that. It also recognises that Ukraine is standing up for a cause that means so much to us all, so the hon. Gentleman’s point is well made.
If I may, I will move on to our economic response. We are escalating our sanctions regime still further to stymie the Russian war machine and isolate Putin. The UK has now sanctioned more than 1,000 individuals and 100 entities, including oligarchs with a net worth of more than £100 billion. In recent days we have focused on his inner circle and the shady financial network surrounding him. This is alongside the asset freezes, trade bans and tariffs that we and other G7 nations have imposed in recent months. Over time, this economic contraction and the restriction of access to complex components will have an ever-deepening impact on the Russian war machine. As time goes on, despite their daily dose of propaganda, it will be harder and harder for the Russian people to ignore the evidence that their leaders are betraying them and their interests.
Jeremy Quin
I am conscious that other hon. Members want to speak, but I will of course allow the hon. Gentleman to intervene.
Geraint Davies
The Minister is probably aware that Putin signed a deal at the Olympics in Beijing for Russia to provide 10 billion cubic metres of gas per year from 2025, compared with 1.25 billion a year now, and that it is supplying more to Indonesia and India as well. Would he accept that, by working with China, Russia will be able to avoid the impact of sanctions over time, and that the imperative is to provide military assistance to get Russia out of Ukraine?
Jeremy Quin
There is an overall strategy to achieve the objective to which the hon. Gentleman refers. It is part defensive military aid, part economic and part diplomatic, and all those parts have a role in achieving our overall objective. Analysts are suggesting that, as a result of the economic package of measures delivered by the global community against the Russian economy, there has been a contraction of 10% to 15% in Russian GDP. That is extraordinary contraction. It takes the Russian people back to where they were before the Putin regime commenced, which has to have a direct impact—not only on them and the way that they think about the regime that is betraying their interests, but on the Russian war machine.
Jeremy Quin
I will, but then, if hon. Members will excuse me, I should probably make progress. I am conscious that I have perhaps been speaking for too long to allow others a chance to speak.
Janet Daby
I am extremely grateful. My intervention is similar to that of my hon. Friend the Member for Sheffield Central (Paul Blomfield). I have constituents from Ukraine. They are a family of five, but their children have been unsuccessful in obtaining visas. I recognise that there is a priority for visas for Ukrainian people who are outside the UK. Could the Minister ask his ministerial colleagues at the Home Office to look at this case and perhaps give it a degree of priority, so that this family can get their benefits and so on?
Jeremy Quin
I ask the hon. Lady to write to the Under-Secretary of State for the Home Department, my hon. Friend the Member for Torbay, who is sitting beside me on the Front Bench; he has generously said that he will assure her of a response as soon as possible to the question she has asked on behalf of her constituents.
Thirdly and finally, there is the diplomatic response. We are working intensively with our allies and partners to make it clear to the Russian Government that they must withdraw their forces and engage genuinely in peace negotiations. The Prime Minister has visited in Sweden and Finland to agree increased co-operation on security, and to discuss their applications to join NATO, which I am delighted have now been formally received. We have been clear about our view that those countries should be integrated into the alliance as soon as possible. Meanwhile, the Foreign Secretary was in Germany to attend the G7 and NATO Foreign Ministers’ meetings, where she pressed the need for further support for Ukraine. The Defence Secretary met his US counterpart, Secretary of Defence Lloyd Austin, at the Pentagon two weeks ago, and he is in Madrid today for similar discussions ahead of the NATO summit. I will likewise be heading to Canada in a few days’ time.
We are working closely with our allies to hold Putin and his regime to account for their appalling war crimes. This week we have seen the first Russian soldier jailed for life in Ukraine for murdering 62-year-old civilian Oleksandr Shelipov, but the Ukrainian authorities believe that more than 11,000 other war crimes have been committed, from the indiscriminate targeting of civilians to rape and sexual violence, so we have sent support into the country to help collect evidence, including witness statements and video recordings. We have provided additional funding to the International Criminal Court, as well as technical assistance via UK military and police personnel. We have also appointed Sir Howard Morrison to support the Ukrainian prosecutor general in her investigations.
Even as we work to stop Putin, we must continue to support the Ukrainian people who are bearing the brunt of Russian brutality. The UN estimates that more than 6 million people have been forced to flee the country, while a further 8 million have been internally displaced. That is why we have committed nearly £400 million of humanitarian and economic aid so far, including more than 5 million medical items, 42 ambulances and more than 500 mobile generators.
At home, the British public have demonstrated their great generosity once again, with more than 200,000 individuals and organisations signing up to offer help. The Ukraine family and sponsorship schemes have, together, issued more than 107,000 visas so far.
We are also preparing to help Ukraine rebuild when this war is finally over. The Foreign Secretary spoke to G7 leaders about the need for a new Marshall plan for the country, which could be paid for in part using Russian assets—the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) will be pleased to hear that.
We have already pledged £174 million in aid to help Ukraine’s economy to recover, including a three-year package of support for energy security and reform. In reference to the point raised by my right hon. Friend the Member for South West Wiltshire (Dr Murrison), the Secretary of State for Transport recently met his Ukrainian counterpart to discuss ways of getting grain out of the country, which would provide a vital lifeline to the local economy and a much-needed global commodity.
Mr Ellwood
My hon. Friend has been very generous in giving way. I was pleased to attend the Lennart Meri security conference in Tallinn last weekend, and my right hon. Friend the Minister for Europe and North America, who is in his place, also attended. The support for Britain was overwhelming, reflected not just in those who attended the conference but in the result of the Eurovision song contest, in which we rightly came second to Ukraine.
The Minister is speaking about what other assistance we can provide. Will he clarify whether there is any truth in the reports that we will now be providing hard-power support—troops—to Moldova, in addition to our support for Ukraine?
Jeremy Quin
To answer the question precisely, I am aware of no current plans to do that, but we have a close relationship with Moldova. We work co-operatively with Moldova, and it is a relationship we are keen to foster and build on.
The Ukrainians won the battle of Kyiv and the battle of Kharkiv. They are more than holding their own in bitter fighting, but there remains a long way to go before this war can be won. We must therefore continue to stand by our Ukrainian friends for the long term. They are fighting not just for their survival but for the values of freedom, democracy and justice that are the essence of our society. That is why they must succeed, and this House can rest assured that the United Kingdom will continue to do everything in its power to make sure that outcome is achieved.
Ajax Update
Jeremy Quin Excerpts(2 years, 6 months ago)
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The Minister for Defence Procurement (Jeremy Quin)
As part of my commitment to keep Parliament informed on the programme, I wish to provide a further update on the Ajax equipment project being delivered as part of the armoured cavalry programme.
Programmatic issues
Work continues on the noise and vibration issues.
The independent Millbrook trials have now concluded. The initial findings informed the consideration by the safety panel on the next step of conducting user validation trials.
The aim of the user validation trials is to help establish the effectiveness of the modifications to address the noise and vibration problems and thereby deliver a safe system of work under which we could conduct reliability growth trials on the modified vehicles.
Following agreement by the safety panel, user validation trials by Army personnel resumed at the Armoured Trials Development Unit on 12 May, supported by the independent Millbrook trials team. Data was successfully collected during the trials for analysis. In particular, as a result of the trials, an issue has been raised on the effectiveness of the internal communications system which requires additional analysis.
The safety panel have set cautious parameters within which the user validation trials are to be conducted. This included the temporary use of Crewgard headsets to allow the modifications proposed by General Dynamics to be trialled. Hearing checks were conducted on all personnel before and after the trials took place. These checks identified hearing anomalies in some personnel (including personnel not involved in the trials who were part of the “control” sample). We intent to resume trials once these anomalies are understood.
User trials are required to allow Millbrook to continue to gather additional data to provide an independent assessment on the effectiveness of the modifications proposed by General Dynamics. We will then analyse the data, alongside feedback from the Army crews involved. This analysis will help define a safe system of work for the reliability growth trials on the modified vehicles.
These reliability growth trials are planned to commence later this year. As with any armoured vehicle procurement, the aim of the reliability growth trials is to test the vehicle more thoroughly over an extended period. This will identify any issues beyond noise and vibration that need to be addressed before we can be confident that the vehicle meets the Army’s contractual requirements. Identifying and resolving a range of such issues is a normal part of the acquisition process for all military equipment.
Once we are satisfied that there are long-term solutions to the noise and vibration problems, we will need to agree with General Dynamics a realistic schedule to initial operating capability and full operating capability. We will not accept a vehicle that is not fit for purpose and we are continuing to take all steps necessary to secure our contractual and commercial rights under the contract with General Dynamics.
Update on personnel
It remains the case that of the 310 people identified as working with Ajax, 13 individuals have had long-term restrictions on noise exposure recommended, potentially requiring a limitation in their military duties. The majority of these had pre-existing hearing issues prior to working on Ajax; some did not. A further five individuals remain under specialist outpatient care for hearing and other ear, nose and throat issues. In addition, it remains the case that four individuals who worked on Ajax have been discharged on health grounds, in some cases for reasons wholly unrelated to hearing loss.
Assessments continue for both hand-transmitted and whole-body vibration. To date, fewer than five individuals have been identified with conditions which could be aggravated by vibration; these individuals have been recommended for a limitation in their military duties whilst they undergo further investigation and treatment. It is not possible to determine clinically whether Ajax exposure has caused or aggravated the clinical conditions of any of these individuals. I am withholding a more precise breakdown because, given the small number of service personnel involved, individuals could be identified resulting in a potential breach in medical confidentiality.
The Sheldon review
Following parliamentary clearance of the associated contingent liability, I am pleased to announce that we have now formally appointed Clive Sheldon QC. The review will have full access to all relevant MOD papers and personnel. I encourage all those who wish to provide evidence or other input to the review to contact the independent review team at Ajax-Review@mod.gov.uk. Copies of the terms of reference of the review are available in the Library of the House. I will update Parliament in due course on the likely duration of the review once Mr Sheldon has had the opportunity to consider the issue in detail.
Conclusion
The focus for the MOD and General Dynamics remains on developing and delivering long-term solutions for noise and vibration and vehicles that comply with General Dynamics contractual obligations. We want Ajax to succeed and to deliver what the British Army requires. We have a robust firm price contract for the delivery of 589 vehicles at a cost of £5.5 billion. We will not accept a vehicle that is not fit for purpose.
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Defence and Security Industrial Strategy
Jeremy Quin Excerpts(2 years, 6 months ago)
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The Minister for Defence Procurement (Jeremy Quin)
I wish to update Parliament on the progress made since the publication of the defence and security industrial strategy (DSIS) on 23 March 2021.
Russia’s invasion of Ukraine has highlighted even more the importance of a sustainable and resilient sector that generates the necessary skills to deliver the capabilities we and our partners need, now and in the future.
Over the past 12 months, Government and industry have made significant progress on more than 50 DSIS commitments, and today, I am pleased to announce the publication of the land industrial strategy (LIS) which will be published on the www.gov.uk website shortly. I am also placing a copy in the Library of the House.
The Land Industrial Strategy
The LIS draws on DSIS principles to provide, for the first time, a specific strategy for the sector. It sets the conditions for a long-term collaborative approach, based on shared culture and behaviours that support co-investment in capability delivery, innovation, the strengthening of supply chains and the national industrial resilience the UK needs to respond to crisis.
The LIS is not intended to prevent MOD looking overseas to acquire where appropriate the best value for money equipment. It is however designed to encourage greater transparency and partnerships, especially with onshore suppliers.
The LIS should support the delivery of modernised equipment to the frontline more quickly and efficiently. Key platforms will serve for decades, so we will use open architectures, commonality and modularity, and work with industry to make upgrades through-life. This will give us enhanced capabilities and decisive advantage against adversaries, and, with our allies, the critical “technological edge” needed in this information age.
Partnerships
In the coming years, Government will be asking more of industry, to become more efficient and more enterprising, ensuring we have access to the skills and capabilities we need. This is why we are offering greater long-term transparency on our plans and policies. Since DSIS, MOD has published strategies for digital, data, shipbuilding, space and now land. Other documents such as the defence artificial intelligence strategy will be published shortly.
In addition, we are now going beyond the commitments set out a year ago and, building on the principles of DSIS, we will soon be publishing a defence capability framework that will articulate our longer-term military capability priorities and challenges, providing greater transparency of our future plans and building upon the equipment plan 21. It will map out those areas where we expect industry to invest and upskill, combining our collective efforts to achieve the best outcomes for the UK.
In January, in recognition of the importance of small and medium-sized enterprises (SMEs) for innovation, diversity, and resilience in MOD’s supply chains, we published the refreshed SME action plan, which sets out how MOD will continue to create opportunities for SMEs.
I will shortly be launching the defence technology exploitation programme (DTEP)—a UK-wide initiative that will fund and support collaborative projects between SMEs and higher tier defence suppliers—and help them win new business delivering against MOD’s technological priorities.
DSIS also focuses on strengthening our partnerships abroad including through developing our Government-to-Government frameworks to better support defence exports.
Acquisition and Procurement Reform
Closer to home, we are driving increased pace into acquisition and incentivising innovation and productivity through a range of acquisition improvement initiatives and fundamental reforms of the regulations that govern defence and security procurement and single source contracts.
The implementation of category management is expected to result in financial savings and capability benefits such as improved availability and time to delivery, through a pan-Defence approach to buying goods and services.
We are improving the way that we manage our senior responsible owner (SRO) cadre by introducing an SRO talent pool and ensuring that our SRO skills are matched to the challenges of the projects. We are also targeting the SROs on our biggest projects allocating at least 50% of their time to the task.
We have implemented the social value model within MOD’s procurement process, ensuring contracts deliver against key MOD outcomes and also support wider Government objectives. The MOD’s social value centre of expertise has been established and is ensuring this model is consistently applied.
In March, the Joint Economic Data Hub published its first annual report, highlighting the important role the defence sector makes to the UK economy, including the large number of defence jobs supported by international business as well as the many apprentices and graduates in the sector. This is part of the drive by Defence to be more transparent in setting out the economic contribution the defence sector makes across the UK.
Innovation
This Government have reversed the long-term decline in research and development through additional funding and our ringfenced investment of at least £6.6 billon over the four years of the 2020 spending review. We have increased funding to the UK Defence Solutions Centre and the Defence and Security Accelerator, which is helping turn private sector innovation into military capability.
In February, the UK’s first defence space strategy included a commitment to invest a further £1.4 billion into space technologies over the next decade—with additional innovation funding since being provided; and in March, I opened the Defence Science and Technology Laboratory’s first regional S&T hub in Newcastle upon Tyne, focusing on AI and data science to exploit the latest technological breakthroughs for use across Defence.
We are also working closely across Government with the Joint Security and Resilience Centre at the Home Office and UK Defence and Security Exports at the Department for International Trade to create a more resilient, more efficient, and more innovative security sector.
Conclusion
We have made significant progress in the first year of DSIS, but there is more to be done. The Defence Secretary and I, supported by other Government Ministers, will continue to review progress against commitments to make sure our armed forces will continue to get the equipment and capabilities they need to keep us safe and drive prosperity.
Attachments can be viewed online at: http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2022-05-18/HCWS36/
[HCWS36]
Contingency Liability for Ajax Lessons Learned Review
Jeremy Quin Excerpts(2 years, 7 months ago)
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The Minister for Defence Procurement (Jeremy Quin)
I wish to inform the House that I am today laying a Departmental Minute to advise of a new contingent liability associated with the Ajax Lessons Learned Review.
Clive Sheldon QC has agreed to lead the review. Negotiations are ongoing and the contingent liability will come into force on the formal appointment of the Chair.
The Departmental Minute describes the contingent liability that the MOD will hold, which will provide an indemnity for conducting and reporting the review. The maximum contingent liability held against the MOD is unquantifiable and will remain following publication of the report.
It is usual to allow a period of 14 sitting days prior to accepting a contingent liability, to provide Members of Parliament an opportunity to raise any objections.
Exposure is limited to the contingent liability of any legal action in the run-up to and following the publication of the Review’s report. It will not cover claims for liabilities:
Arising from any fraud, wilful misconduct, dishonesty, or gross negligence on the part of a member of the Review Team;
Arising from any wilful breach of any contract or agreement with the Ministry of Defence relating to the Review Team.
It is the view of the Department that the likelihood of any claim is remote.
[HCWS741]
Contingent Liability for Ajax Lessons Learned Review
Jeremy Quin Excerpts(2 years, 7 months ago)
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The Minister for Defence Procurement (Jeremy Quin)
I wish to provide a further update to Parliament on the Ajax equipment project being delivered as part of the Armoured Cavalry programme.
Ajax is designed to provide ground mounted reconnaissance, allowing the Army to understand the battlefield in all weathers, 24 hours a day. Part of our £41 billion investment in Army equipment and support over the next 10 years, this modernisation is critical to address future threats.
Health and safety
On 15 December, I announced the publication of the report from the MOD’s Director of Health, Safety and Environmental Protection into the health and safety concerns raised by noise and vibration on the Ajax vehicles.
The report made 20 recommendations. Implementation of the recommendations is now under way. Some have already been implemented in full, for example the Army has stood up its noise and vibration working groups (Recommendation 2.2); future trials of armoured vehicles will have real-time measurement of noise and vibration (Recommendations 3 & 11); and we were already taking action to ensure our SROs and project leads stay in post longer (Recommendation 13.1). The remainder are being progressed. We continue to consider the recommendation relating to the overlap of demonstration and manufacture stages (Recommendation 9) to ensure it is implemented in a way that does not hinder our efforts to create a more agile approach to defence acquisition, consistent with the defence and security industrial strategy, and which reflects the industrial processes in different sectors.
Update on personnel
Following the most recent assessment on 17 February 2022, of the 310 people identified as working with Ajax, 13 individuals have had long-term restrictions on noise exposure recommended, potentially requiring a limitation in their military duties. The majority of these had pre-existing hearing issues prior to working on Ajax; some did not. A further five individuals remain under specialist outpatient care for hearing and other ENT issues. In addition, it remains the case that four individuals who worked on Ajax have been discharged on health grounds, in some cases for reasons wholly unrelated to hearing loss.
It remains the case that no individuals have had long-term restrictions or been discharged as a result of vibration. However, assessments continue for both hand-transmitted and whole-body vibration.
Lessons learned review
The health and safety report highlighted shortcomings that need to be addressed. Although the report only addressed the health and safety aspects of Ajax, it pointed to some cultural and systemic issues that have the potential to go beyond health and safety. That is why the Defence Secretary and I have commissioned an independent follow-on lessons learned review and I am pleased to announce that Clive Sheldon QC has agreed to lead the review. I am sharing copies of the terms of reference with the Public Accounts and Defence Select Committees and placing a copy in the Library of the House.
Programmatic issues
Work continues to resolve the noise and vibration issues. Testing is now under way to verify the effectiveness of modifications proposed by General Dynamics to mitigate the noise and vibration issues to a safe and acceptable level. We will then need to analyse this data in order to understand the practicalities of allowing trials and training to resume.
It remains the case that we cannot yet set a date for the introduction of Ajax into service with the Army. Once a solution to the noise and vibration problems has been identified by GDUK and agreed by the Department, we will need to agree with General Dynamics a realistic schedule to initial operating capability and full operating capability.
In parallel with looking at noise on Ajax vehicles, the MOD has commissioned independent testing of the performance of all headsets used in the full range of in-service armoured fighting vehicles to ensure the specific headsets issued to service personnel offer the best balance between protection and functionality. We are also testing other commercially available headsets for use in our in-service fleet of vehicles. As a precaution, in December 2021, we placed temporary restrictions on the use of headsets across our in-service fleet of armoured vehicles, restrictions we were able to relax later that month as a result of the testing conducted. We continue to be able to fully meet all ongoing, planned and likely operational commitments.
Conclusion
The focus for the MOD and General Dynamics remains on developing and delivering long-term solutions for noise and vibration. We are working closely with General Dynamics and it is showing great commitment to resolving these issues. Until we know what those solutions are, it is not possible to determine a realistic timescale for the introduction of Ajax vehicles into operational service with the Army. We want it to succeed and to deliver what the British Army requires with the utmost urgency. We have a robust firm price contract for the delivery of 589 vehicles at a cost of £5.5 billion. We will not accept a vehicle that is not fit for purpose.
The terms of reference can be viewed online at: http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2022-03-29/HCWS739/
[HCWS739]
Baseline Profit Rate 2022-23: Single Source Defence Contracts
Jeremy Quin Excerpts(2 years, 8 months ago)
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The Minister for Defence Procurement (Jeremy Quin)
I am today announcing that I have set the baseline profit rate (BPR) for single source defence contracts at 8.31%. This differs from the SSRO’s recommendation of 8.07%. Element 2021 Rates 2022 Rates Baseline Profit Rate (BPR) (% on contract cost) 8.31% 8.31% Baseline Profit Rate to apply to contracts between the Secretary of State and a company wholly owned by the UK Government and where both parties agree (% on contract cost) 0.057% 0.046% Fixed Capital Servicing Rate (% on Fixed Capital employed) 3.27% 3.27% Working Capital Servicing Rate (% on positive Working Capital employment) 1.33% 1.33% Working Capital Servicing Rate (% on negative Working Capital employed) 0.65% 0.65% SSRO 0.057% 0.046%
The SSRO calculate the BPR by taking an average of the methodology of profits earned by comparable companies, usually over the preceding three years. This year’s calculation therefore includes profits reported by firms in the comparator group for the year ending March 2021, which was the year when covid-19 had its largest economic impact. The SSRO recommended reducing the immediate effect on the BPR by using a four year average rather than the usual three. While I believe this was a sensible approach, and I support the principles of the SSRO approach, I have decided that it would be fairer to remove the effects of covid-19 completely from the calculation by using the average of the three years prior to 2021.
My reason for this is that while this BPR will be used to calculate the profit payable on single source work contracted in 2022-23, much of the work will be undertaken several years in the future, given the long-term nature of many Defence contracts. I believe it would be unfair to include in this rate the effects of an event that is as extraordinary as covid-19. In reaching this conclusion I have drawn on the analysis produced by the SSRO on the extent to which last year’s rate was unusual, and by my officials on its potential long-term effects.
I have asked the SSRO to engage with industry and my officials in returning—next year—to a market-based benchmark based on their established methodology that reflects my intention to remove the impact of covid-19. For the same reasons, I am also using the figures calculated by the SSRO for the last year before covid for the three capital servicing rates.
Last year I introduced a net zero Baseline Profit Rate for Government-to-Government Contracts. The SSRO has incorporated this into their recommendation this year. I have accepted this recommendation. I am also announcing that I am accepting the SSRO recommendation for their funding adjustment. Neither of these figures are significantly affected by wider economic factors.
These rates will also be published in the London Gazette, as required by the Defence Reform Act 2014.
All of these new rates will come into effect from 1 April 2022.
[HCWS726]
Oral Answers to Questions
Jeremy Quin Excerpts(2 years, 8 months ago)
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Miriam Cates (Penistone and Stocksbridge) (Con)
The Minister for Defence Procurement (Jeremy Quin)
Recent estimates shows MOD investment supporting over 200,000 jobs across the UK. Continued investment in defence, along with the changes we are making as part of the defence and security industrial strategy, will contribute to further economic growth and prosperity, including jobs, across the Union.
Virginia Crosbie
BAE Systems at RAF Valley in my constituency of Ynys Môn is hoping to hear news about a long-term contract, providing security to hundreds of workers. These are high-value jobs that underpin our sovereign UK defence capability. These technical and engineering roles provide maintenance to the RAF Hawk T2 fleet and support our future fighter pilots. Does my hon. Friend agree that this forthcoming contract is great news for Anglesey and great news for our UK security in these challenging times?
Jeremy Quin
I cannot comment on specific contracts, but I can confirm that those are indeed high-value jobs performing an important role for our armed forces. My hon. Friend has been assiduous in pushing the case for defence jobs in her constituency, and I hope to be making an announcement shortly.
Jacob Young
Does the Minister agree that the current dreadful situation in Ukraine means that we need to be very focused on our defence supply chains, buying and using British where possible and further supporting the economies of areas such as Redcar and Cleveland?
Jeremy Quin
My hon. Friend is absolutely right. We were already focused on securing our critical defence supply chains, but DSIS has provided renewed impetus. Specifically on steel, as he mentions his home patch, it is for the prime contractors to place orders but they are all flagged well in advance with UK industry. Unfortunately, there are occasions—we have had this recently—when specific types of steel that we require are not being produced in the UK. I would urge UK manufacturers to really explore these opportunities. We are very keen to see them do so.
David Duguid
The Minister will be familiar with the company Score in my constituency. It is a major supplier of valves across different industries, including for naval vessels. May I invite him to see for himself the fantastic facilities, technology and expertise, including the award-winning apprenticeship schemes, utilised by the single largest employer in my constituency of Banff and Buchan?
Jeremy Quin
Our increase in naval procurement benefits jobs throughout the UK. I am delighted to hear of the Score Group’s apprenticeship scheme to build talent for the future and I am keen to visit. The UK Government’s shipbuilding programme is proving a great success in supporting Scottish jobs unlike, it appears, that of other Governments with which my hon. Friend, as a Scottish Member, may be familiar.
Miriam Cates
Given the MOD’s recently acquired stake in Sheffield Forgemasters, I know that my hon. Friend understands the important role of the UK steel industry in our national security. What consideration has he given to the opportunities for greater integration and collaboration on defence manufacturing between Sheffield Forgemasters and other steel producers, such as Stocksbridge’s Speciality Steel in my constituency, which he is also welcome to visit? That collaboration could benefit jobs and security.
Jeremy Quin
I am aware of the company in my hon. Friend’s constituency. We took the unusual decision—it is unusual—to acquire Sheffield Forgemasters to secure its unique capability to supply specialist large-scale, high-integrity steel components, which are vital to defence programmes. Ultimately, it is for companies to manage commercial decisions for their future, but to improve engagement, the Business Secretary reformed the UK Steel Council in 2021, which offers a forum for the Government, industry and trade unions to work in partnership on what is absolutely a shared objective for UK steel to have a competitive and sustainable future.
Mohammad Yasin (Bedford) (Lab)
The Aircraft Research Association in Bedford is the only UK-based facility capable of testing our future military aircraft and components, but it is at risk of closure due to the change in electricity costs. Ofgem has stated that only the Government can introduce an exemption scheme to save the company and prevent the UK being reliant on foreign states to test our aircraft. Will the Minister urgently meet me and the ARA to discuss a way forward that protects our national security?
Jeremy Quin
I am willing to meet the hon. Gentleman if that is helpful. I warn him that we are aware of the situation and of the capabilities that we need. I am happy to meet him and speak to him and I will take it from there.
Matt Western (Warwick and Leamington) (Lab)
Many hon. Members have been surprised or enlightened by the performance of the Bayraktar TB2 in Ukraine. What sort of message does that send to UK strategy and procurement?
Jeremy Quin
Happily, we were ahead of the game. It is part of the discussion that we had as part of the integrated review. There are active processes in place to test UAVs—unmanned aerial vehicles—and counter-UAV technologies. We are aware of them. This conflict and previous ones have thrown into sharp relief how effective those weapon systems can be.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
I have some important manufacturers that supply the defence sector, such as David Brown Santasalo and Reliance Precision, that would like to know what the future of their business is, given that the Government are going to reduce the size of our armed forces to 72,000 and that last week’s mini-Budget gave no extra funding to defence. If Vladimir Putin is watching the parliamentary channel, what does the Minister think he will be thinking?
Jeremy Quin
I do not know whether Mr Putin is watching us today; I would like to say some robust things if he is. I give some reassurance to the hon. Gentleman: last time I visited David Brown Santasalo, it was hard at work on components for the Type 26, to which programme we are committed, as he knows, and on many export orders. It is hard at work producing really valuable bits of kit for the UK and in due course, I hope, our allies.
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.
Wendy Chamberlain (North East Fife) (LD)
Steve Brine (Winchester) (Con)
The Minister for Defence Procurement (Jeremy Quin)
The MOD continues to deliver on its 25-year strategy to modernise its estate. In the last year, the Defence estate optimisation portfolio has completed construction at three Defence sites, with another six in construction, and completed the sale of seven surplus MOD sites, generating £141 million in receipts to re-invest in modem and sustainable facilities for our armed forces.
Steve Brine
The Minister knows that the Sir John Moore barracks in my constituency is marked for disposal under the programme. He also knows that what will be put in its place is causing anxiety. As we reduce the size of the Army in pursuit of the Future Soldier proposals in the integrated review, it is obvious that some consolidation will be needed around the training estate, but does the Minister share my concern about losing what is a good facility in good order at the Army Training Regiment in Winchester, given that the conflict at present—and, I suspect, for some time to come—looks very 20th century, not necessarily in terms of offensive ground operations, but in terms of all the other things, including boots on the ground, that we require of our armed forces?
Jeremy Quin
I know from the meetings we have had that my hon. Friend is very engaged with this MOD site, which is due to close in 2026. The rationale for the closure is to concentrate all phase 1 non-infantry training at Pirbright to provide a bespoke training environment embracing digitalisation. The numbers trained could be flexed, but I will continue to engage with him on what he has impressed on me is an important issue for his constituents.
Selaine Saxby (North Devon) (Con)
The Minister for Defence Procurement (Jeremy Quin)
I emphasise that decisions on equipment are in response to requests from Ukraine, and we consider how best to address Ukraine’s needs. The anti-tank weapons provided to the Ukrainian armed forces thus far have been taken from existing UK stocks, to ensure speed of delivery. The MOD continues to pursue options to meet Ukrainian requirements rapidly, including through UK industry and by actively convening our global partners.
Selaine Saxby
I have been contacted by manufacturers of military hardware in North Devon that work with the MOD and can rapidly move to provide items such as helmets and body armour. Are there any plans for a streamlined emergency procurement process to help speed this up?
Jeremy Quin
I emphasise that these are Ukrainian decisions. I urge UK companies to contact the Ukrainian embassy, as well as using other routes. In parallel, the Department for International Trade is meeting defence-ready trade associations such as ADS and Make UK on a weekly basis to rapidly consider industry offers to Ukraine and how they can be assisted. UK manufacturers of military hardware may also wish to forward offers to their trade association.
Alex Norris (Nottingham North) (Lab/Co-op)
The Minister for Defence Procurement (Jeremy Quin)
You are aware of this, Mr Speaker, but a number of hon. Members have inquired and the Defence Secretary would not want it to be thought that he means any discourtesy to the House: he has had a brief brush with covid, and I can assure the House on behalf of the Department, the armed forces and the Ministers here present that it has neither stopped him nor slowed him down. He has had a second negative test today, and I am assured that by this evening he will be as present physically as he has been virtually over the last few days.
The Ministry of Defence continues to deliver against the objectives of the integrated review and the defence Command Paper, which recognise that Russia remains the most acute threat to our security. We remain on course to deliver a more modernised and threat-focused defence alongside our international allies, just as we have worked with them on Ukraine.
Alex Norris
Recent weeks have only reinforced the need to invest in our defence, which is important for our economy and vital for our security. With that in mind, why will Ministers not give a clear commitment to British-built by default in defence procurement?
Jeremy Quin
The events of the last few weeks show the critical importance of having the right kit in the hands of our armed forces. On many occasions the need can be met by British supply, but I would not write off the kit we can procure from our US and NATO allies, nor would I wish them to write off the prospect of buying kit from us. We are part of an alliance, and I am convinced that our approach of supporting British industry, supporting British investment and supporting capability through the defence and security industrial strategy, while keeping a weather eye on what else is available to ensure our armed forces are well armed, is the right one.
Mr Philip Hollobone (Kettering) (Con)
John Healey (Wentworth and Dearne) (Lab)
The UK’s anti-tank and anti-air weapons are proving vital to the Ukrainians in fighting the Russian invasion. The Prime Minister pledged at NATO last week that we will supply a further 6,000 missiles. Both NLAW and Starstreak are made in Britain by British workers, as the Minister for Defence Procurement said in response to the hon. Member for North Devon (Selaine Saxby) on Question 17, but has production started to replace the British stockpiles of these missiles?
Jeremy Quin
We are working closely with industry. Some lines have continued, but I would rather not get into operational details of as and when stockpiles will be replenished. Suffice it to say that we are in active conversations with industry, as the right hon. Gentleman would expect.
Andrew Rosindell (Romford) (Con)
Jeremy Quin
I hear what my hon. Friend says and I note his concern. As the integrated review made clear, we always look at spending on a threat basis: what is required, we fund. I also remind him that we are the biggest defence spender in Europe and the second biggest in NATO, and we were pleased to receive a £24 billion uplift in the current spending period.
Wendy Chamberlain (North East Fife) (LD)
Jeremy Quin
I thank the hon. Lady for her question. I think I wrote to her last in November of last year on that issue. I am afraid we have not moved on yet and we are still studying exactly what radar configurations will be required, but it is actively being looked at and I certainly commit to updating her when I can give her an assurance one way or the other.
Dr Julian Lewis (New Forest East) (Con)
Ben Everitt (Milton Keynes North) (Con)
Jeremy Quin
I am delighted to join my hon. Friend in welcoming that downselection. There is still a process to go, but if it has finally got over the line, as I hope, that will be great news for Babcock, great news for Scotland and great news for British shipbuilding. I have on multiple occasions been to see my opposite number in Poland and hosted them here in the UK. I think they are making a great choice.
Ellie Reeves (Lewisham West and Penge) (Lab)
In June last year, one of my constituents, a British-Afghan dual national, travelled to Afghanistan to visit his wife and three children aged under 10. During the evacuation, they were advised to proceed to Baron Hotel but were not processed before the suicide attack. Since then they have been trying to get to the UK, but the Foreign, Commonwealth and Development Office says they need a visa and the Home Office says they are ineligible for the resettlement scheme. What urgent action can the Minister take, with colleagues in the Home Office, to ensure that my constituent can return safely to the UK with his young family?
Christian Matheson (City of Chester) (Lab)
Does the Minister share my concern that the agility and mobility hoped for in the Future Soldier programme will be thwarted if those soldiers are stuck in traffic on the M6 near Weeton barracks? Would it not be much better to keep Dale barracks in Chester open and have a wider operational footprint for our future soldiers?
Jeremy Quin
That is an ingenious construction. We always think about this, but I am afraid we do not have any plans to change that element of the defence estate optimisation portfolio at this point.
Dr Matthew Offord (Hendon) (Con)
Rachael Maskell (York Central) (Lab/Co-op)
The national security vetting services have never played such an important role, and the skill there is incredibly high. When will the Minister announce that they will remain in York when the MOD moves forward with its plans for the Imphal barracks site?
Jeremy Quin
I cannot give any form of commitment on that right now, but I will write to the hon. Lady.
Dr James Davies (Vale of Clwyd) (Con)
James Gray (North Wiltshire) (Con)
While it is perfectly true that any sensible person in the west would rather President Putin were not the President of the Russian republic, does the Minister agree that it is vital that we reiterate at every second that we can that NATO is a defensive alliance among 30 members and that we will react if one boot goes over the line on to NATO land, but the presidency of Russia must be a matter for the Russian people, not for us?
Jeremy Quin
My hon. Friend is correct. NATO is a defensive alliance, and we are working closely together. As my hon. Friend the Minister for the Armed Forces said, we are undertaking measures to ensure that NATO retains that deterrence and defensive posture that is appropriate in these times. However, we are focused bilaterally on Ukraine and on supporting Ukraine—that is the focus of our policy.
Andrew Gwynne (Denton and Reddish) (Lab)
At the last Defence questions, I got what I hoped was an encouraging answer on behalf of the nuclear test veterans for what will be the 70th anniversary of the first nuclear tests. Will the Minister update us on where we are in recognising those veterans and their families for their sacrifice?
Mr Richard Holden (North West Durham) (Con)
With the next generation Challenger 3 turrets being built in the north-east, supporting hundreds of jobs, the Defence Science and Technology Laboratory working with Newcastle and other local universities and Cook Defence Systems in my constituency providing armoured vehicle tracks for not just British tanks but those of NATO and European allies, will my hon. Friend ensure that the north-east’s firms and workers remain at the heart of British defence procurement?
Jeremy Quin
They are. Last Thursday, I had a great day opening the AI hub for DSTL in Newcastle and pressing the button to start production of the turrets for our Challenger 3 tanks, to which my hon. Friend referred. There is a great history of defence manufacturing in the north-east, and it will have an even greater future.
Defence
Jeremy Quin Excerpts(2 years, 8 months ago)
Ministerial CorrectionsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Jeremy Quin
Today, I am delighted to announce that we are going one step further by publishing our refreshed national shipbuilding strategy. Drawing on the multi-talented skills of the Government, industry and academia, and backed up by more than £5 billion of Government investment over the next three years, the plan creates the framework for our future UK maritime success.
[Official Report, 10 March 2022, Vol. 710, c. 505.]
Letter of correction from the Minister for Defence Procurement, the hon. Member for Horsham (Jeremy Quin):
An error has been identified in my statement.
The correct information should have been:
Jeremy Quin
Today, I am delighted to announce that we are going one step further by publishing our refreshed national shipbuilding strategy. Drawing on the multi-talented skills of the Government, industry and academia, and backed up by more than £4 billion of Government investment over the next three years, the plan creates the framework for our future UK maritime success.
National Shipbuilding Strategy
Jeremy Quin Excerpts(2 years, 8 months ago)
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The Minister for Defence Procurement (Jeremy Quin)
With your permission, Madam Deputy Speaker, I would like to make a statement on behalf of my colleague the Secretary of State for Defence and shipbuilding tsar, concerning the Government’s refresh of the national shipbuilding strategy.
The United Kingdom is a great maritime nation and shipbuilding runs in our blood. At the turn of the previous century, Britain built 60% of the world’s ships and, although we are no longer the world’s workshop, our shipbuilding industry remains a global leader in design and technology. It brings in billions to our economy and spreads wealth right across our country. Today, our maritime manufacturers are responsible for the state-of-the-art research vessel the RSS Sir David Attenborough, and for constructing the most powerful surface ships ever built in Britain: the Queen Elizabeth-class carriers.
More than 42,600 people from Appledore to Rosyth owe their livelihoods to our shipbuilding industry, but we still need to strengthen its resilience. It is worth reminding ourselves that even in the digital age, some 95% of UK trade by volume, and 90% by value, is carried by sea. Given this dependence, it is vital that we continue to safeguard our access to global maritime trade, even as we open up our sails and seek out new markets and new sustainable technologies. That is why, in 2019, the Prime Minister appointed the Defence Secretary as the shipbuilding tsar. Since then, he has been working tirelessly across Government to make our shipbuilding sector more productive, competitive, innovative and ambitious.
There has been real progress. Not only do we have much greater cross-Whitehall and industry co-operation, but we are doubling Ministry of Defence shipbuilding investment over the life of this Parliament to more than £1.7 billion a year. We have committed to procuring a formidable future fleet, including up to five Type 32 frigates, alongside the Type 31 and Type 26 programmes. We will grow our fleet of frigates and destroyers over the current number of 19 by the end of the decade. We have launched a competition to build a national flagship—the first ship of its kind to be built and commissioned in Britain—and last September we opened up the National Shipbuilding Office, a pan-governmental organisation that reports directly to the shipbuilding inter-ministerial group, is chaired by the shipbuilding tsar and is driving transformative change across our organisation.
Today, I am delighted to announce that we are going one step further by publishing our refreshed national shipbuilding strategy. Drawing on the multi-talented skills of the Government, industry and academia, and backed up by more than £5 billion of Government investment over the next three years, the plan creates the framework for our future UK maritime success. It contains five essential elements. First, it radically extends the scope of our existing shipbuilding strategy. I may be standing here as a Defence Minister, but rest assured that the plan is as much about commercial shipbuilding as it is about the Royal Navy. We are focused not simply on hulls alone but on internal systems and sub-systems.
Secondly, we are establishing a 30-year shipbuilding pipeline of more than 150 vessels, thereby offering a clear demand signal in respect of our future requirements. We know that a regular drumbeat of design and manufacturing work is vital not just to maintain our critical national security capabilities but to drive the efficiencies that reduce longer-term cost. We are not just giving suppliers confidence in industry order books; we are going to give them greater clarity about our requirements, too. Today, we set out our policy and technology priorities, from net zero commitments to social-value requirements.
We are determined to ensure that our vast shipbuilding programmes leave a lasting legacy that goes beyond the procurement of a new vessel for the Border Force or the latest battle-winning warships, so we have made it a key requirement for shipbuilders to take account of social value, thereby ensuring not only that we deliver the capabilities that each Department needs but that taxpayers’ money is used to maximum effect. We support jobs, skills and investment and will establish a new social value minimum of 20% for competitions for Royal Navy vessels.
Thirdly, our strategy will accelerate innovation, enabling shipwrights and supply chains to unlock new manufacturing, production and clean maritime technologies. In recent times, the automotive industry has blazed a trail in the field of sustainability, investing in everything from electric to hydrogen and ammonia fuel technologies. But domestic shipping accounts for more emissions than the bus and rail sector combined, so when it comes to decarbonisation, it is high time that we made sure shipping does not end up in the slow lane.
In 2019, the Department for Transport published its “Maritime 2050” strategy, amplifying the power of UK maritime business clusters to foster a climate of innovation.
Last year’s clean maritime demonstration competition underlined the sheer depth of the sector’s potential, with 55 projects winning a share of £23 million to develop carbon-free solutions such as hydrogen-fuelled vessels and shipping charge points powered by offshore wind turbines. Building on that success, we will now make the competition a regular event, creating more opportunities for industry to bring cutting-edge technologies to market.
Alongside that news, I can announce today that the Department for Transport—I am delighted to be joined by the Minister of State, Department for Transport, my hon. Friend the Member for Pendle (Andrew Stephenson) —has committed £206 million to develop a UK shipping office for reducing emissions, or SHORE, which will fund research into and development of zero-emission vessels and help to roll out the infrastructure that enables the UK to achieve its goal of becoming a world leader in sustainable maritime technologies.
Fourthly, shipbuilding is a long-term investment, and the more we can do to shelter it from market storms the better, so the fourth aspect of our plan is about providing greater financial support for shipbuilders to win orders. Access to finance for underwriting contracts is an essential element of any shipbuilding enterprise. Alongside banks and working capital loans, the Government also have a role to play in helping to finance vessel contracts.
UK export finance already offers credit facilities to support British companies winning work overseas. To make UK shipbuilders more competitive, we are bidding for orders for new ships from domestic customers. The Department for Business, Energy and Industrial Strategy is now working up plans to underwrite contracts for UK shipbuilders building ships for UK operation. BEIS aims to launch this new home shipbuilding credit guarantee scheme in May.
Switching to exports, opportunity is opening up for suppliers to increase their market share. In 2020, we exported £2.2 billion-worth of ships, boats and floating structures. We believe that we should be able to grow our exports by 45% by 2030. To make that happen, we are opening a new Maritime Capability Campaign Office. Covering all aspects of the shipbuilding enterprise, from platforms to sub-systems, to the supply chain, it will use robust industry analysis of global markets to help suppliers reach untapped markets. Our success in the long term will hinge on the strength of our skills base.
This brings me to the final aspect of our plan. We are determined to develop the next generation of shipbuilding talent, so today we are establishing a UK shipbuilding skills taskforce. Led by the Department for Education and working in tandem with the National Shipbuilding Office and devolved Administrations, it will bridge skills gaps and learn from best practice, particularly in relation to new and emerging technologies. Above all, it will act as a megaphone for the varied and exciting careers that shipbuilding can offer up and down the country, from designing cutting-edge environmentally friendly ferries to developing propulsion systems for complex warships.
The building blocks of our refreshed strategy are settling into place. Our NSO and Maritime Capability Campaign Office are up and running. Our UK shipbuilding skills taskforce is accepting applications from today, and, in the coming months, we will be establishing a new shipbuilding enterprise for growth. Co-chaired by the chief executive officer of the National Shipbuilding Office and a senior industry executive, it will unite the finest minds in shipping to overcome some of the sector’s toughest challenges.
In other words, today, we offer a powerful vision of what shipbuilding will look like in 2030. It is a vision of a supercharged sector with thousands of highly skilled workers; a vision to make this the country of choice for specialist commercial and naval vessels and systems, components and technologies; a vision that generates the increased investment to level up our nation; and a vision that will spark a British shipbuilding renaissance and inspire even more countries to seek out that “made-in-Britain” stamp.
The framework is ready. Now we will be working with our superb shipbuilders, our supply chains and across Government to help transform this great ambition into a prosperous reality. I commend this refreshed strategy and this statement to the House.
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.
Mr Mark Francois (Rayleigh and Wickford) (Con)
The British-built Type 45 destroyer is arguably the best of its class in the world, but it has been plagued by persistent problems with its propulsion system. The Ministry has a “put right” programme, but it will not be completed until 2028. Given that we now have to deter a Russia that is prepared to bomb maternity hospitals, we need those ships fully capable and fit to fight now, not in six years’ time. Will the Minister go from this place back to his Department, review the entire programme and issue an urgent operational requirement, so that if they were required, those wonderfully capable ships can fight to keep our country and NATO free?
Jeremy Quin
My right hon. Friend is absolutely right that the Type 45s are excellent bits of kit. They are one of our bits of equipment that I know our adversaries fear, and rightly so. The concern we always have is balancing operational requirements; as he knows, we have two Type 45s out on station at the moment, so we must make certain that we can bring those ships back in for their power improvement project upgrades. I can confirm that we are looking at ways to accelerate the PIP programme, and I recognise that it is important that we do so.
I also apologise to my right hon. Friend, and I dropped him a note this morning. In response to an intervention yesterday, I said that Dauntless was undergoing sea trials, but I had conflated sea trials with the test and commissioning phase. That is where she is now, but the three new diesel engines are working successfully and she will be embarking on sea trials in a few weeks’ time.
Dave Doogan (Angus) (SNP)
I thank the Minister for advance sight of his statement and commend his fleet-of-foot actions in changing the range from Appledore to Glasgow to Appledore to Rosyth. That is an important correction to make.
The fourth from final paragraph in the Minister’s statement cuts to the chase on this issue in the way that the strategy does not when he states that it is a vision to make the UK,
“the country of choice for specialist commercial and naval vessels and systems, components and technologies”.
Among the 80 pages of waffle and padding, the strategy alights briefly on that point, but not in the way it really should. The strategy also highlights the word “international” 31 times. I welcome the realisation that in a global economy with global supply chains the notion that we can procure every single element in the United Kingdom, while a noble ambition that we should sweat as much as we can, is naive.
I welcome the fact that the national strategy sets out a range of opportunities, which excellent yards all around Scotland are ready to lean into and capitalise on. I am a little sceptical about whether the funding announced in the strategy will have a massive impact across all the yards in the United Kingdom, but I hope it will.
Scotland’s skills, as I am sure the Minister will agree, have been highlighted many times in the past decade, not least on the QE2-class ships, which are outstanding in their quality and performance, the Type 26 under construction in Glasgow and the Type 31 under build in Rosyth. He will welcome, as I do, the export success that has been achieved, with 26 going to Canada and Australia, but he will know that those are in-country builds. That is not to downplay the opportunities of intellectual property and engineering that Glasgow will enjoy from them, but does he agree that really what we need is Type 31s sold to countries that will require them to be built in Rosyth?
Jeremy Quin
First, as I am sure the hon. Gentleman will acknowledge, this is a UK-wide endeavour. There are great assets and skills in Scotland, and I am delighted that this week, I think, we have signed a lease to ensure that there is space in Edinburgh for part of the National Shipbuilding Office to be based there. This is a national endeavour, delivering for the whole of the UK. He is right that £4 billion is a lot of money and we want it to go further by winning export orders.
The hon. Gentleman is right that the Type 26 exports to Canada and Australia are a solid bit of progress. It is right to say that they will support thousands of jobs and design is incredibly important, as are many of the subsystems often used by overseas purchasers, even as they do a lot of work on the frigates themselves. We will learn from them as well as their learning from us.
On Type 31 and export, there has been great news: first the work with Indonesia and secondly the down selection last Friday by the Polish navy of Type 31 or Arrowhead. That is an extremely important step forward and I am very proud to have been part of it. I spoke to my Polish opposite number on that and other topics this morning. It would be great if we could also sell Type 31 to countries that do not have the capacity to build themselves, and do that work in Rosyth or elsewhere. That is a grand ambition. However, I am delighted that our design, our subsystems and our skills are being recognised in the export orders we are already winning.
Greg Smith (Buckingham) (Con)
I warmly welcome my hon. Friend’s statement. I am sure he has been glued to the Transport Committee’s current inquiry into fuelling the future, where we have heard evidence about a plethora of new, cleaner fuels being developed for use across the transport sector. With the £206 million he has announced for the UK Shipping Office for Reducing Emissions, may I urge him to give as much regard to the cleaner fuels of the future as to the tech being developed on vessel?
Jeremy Quin
Absolutely; I thank my hon. Friend and look forward to the conclusion of the Select Committee’s work. He is right about fuelling for the future, and I have no doubt that my colleagues in the Department for Transport will place a significant emphasis on exactly those issues. They certainly did in the first round, with the £23 million of the clean maritime demonstration competition, which had 55 awards and was oversubscribed. I know many of the R&D suggestions coming forward were in exactly that space, which offers a great opportunity for the future.
Mr Kevan Jones (North Durham) (Lab)
I draw the House’s attention to my non-pecuniary interests entry in the Register. I welcome the Minister’s statement. In his original report, Sir John Parker emphasised the drumbeat of work and regular orders that is important for yards—but that means orders. The Minister’s own Department, in the past few weeks, has awarded a £10 million contract to a Dutch yard, even though I warned him about that several months ago. He has given no commitments on the FSS, and the Border Force and the Home Office are looking at procuring boats from the Dutch, too. No other country does that. We need a full commitment from Government to ensuring that when those orders are procured, they are procured in UK yards. They used to hide behind the European Union, but they can no longer do that. I understand that Ministers are now hiding behind some international trade issues, but no other country has this problem.
Jeremy Quin
The right hon. Gentleman and I did have a discussion across this Dispatch Box regarding the order, and his intuition proved correct. There was a competition process, and he proved to be correct in his assumption, although I emphasise that that was not a new build of a new vessel, but a requirement for the Royal Navy to have an existing vessel that it could practise some new developments on. It went into the market as a competition and that is how it ended. They fine-tuned the competition to ensure that it was fully fair, and we got that result.
I know the right hon. Gentleman has been a regular advocate of an FSS build in this country. FSS is proceeding and it will be substantially built. I am trying to remember exactly when the two years starts—I believe it is two years from the start of the manufacturing phase but, if it is not, I will write to him and leave a note in the Library.
On the point about the WTO rules, we do not take them lightly and it is right that we work within them, but that does not mean that we do not do everything in our power to maximise the benefits to British shipbuilding. That is what the National Shipbuilding Office has been set up to do, and that is what this refresh is about: whether on shore, on the home shipbuilding guarantee or on skills, we must ensure that we win, that we succeed and that we can compete with and be just as productive as other northern European yards.
James Sunderland (Bracknell) (Con)
I, too, welcome the statement from the Minister, which is excellent—what is not to like? This is about jobs, livelihoods, R&D, technology, self-sufficiency, investment and exports. I welcome the growing imperative towards a “build it in Britain” strategy. That is very important. Given our proud shipbuilding pedigree in Wales, England, Scotland and Northern Ireland, does he agree that this is great for the Union? Moreover, noting that we are a proud seafaring member of the United Nations P5 and of NATO, does he agree that we are better off together?
Jeremy Quin
I absolutely agree that we are better off together. I agree with my hon. Friend that we should build in Britain; that should be the result of this refresh. We should be not only winning in Britain, but winning export orders overseas, due to the quality of our products and ideas and the productivity of our manufacturers. I agree with all that in the context of the United Kingdom build. That is a huge emphasis and, as Scottish yards have found, whether with the British Antarctic Survey or Babcock, having the weight of the Royal Navy—a benchmark Navy—behind them and the UK Government in full support really does help to bring in those export orders. We are committed to jobs, skills and infrastructure the length and breadth of the UK.
Sarah Champion (Rotherham) (Lab)
I welcome the Minister’s statement about the commitment to shipbuilding. May I urge him to do all he can to make sure that the ships are built in Britain, using British steel? In Rotherham, we make world-leading steel and we are the only place making speciality steel. If he could make that commitment, it would give real security to the industry.
Jeremy Quin
In the same way that we have that pipeline of 150 vessels, as the hon. Lady knows, we always set out the pipeline of what is coming up imminently to help steel manufacturers in the UK to know where the opportunities are. With some ships—for example, the carriers—a huge proportion of the steel was from UK sources. It does vary according to the technical specification. However, I am absolutely convinced of one thing: if we can increase the amount of shipbuilding in Britain, the amount of UK steel being used will increase proportionately as well.
Lee Anderson (Ashfield) (Con)
This is welcome news and I thank the Minister for his statement, but does he agree that these warships should be built in Great Britain by great British workers, using great British steel, and—the bit that will upset the Opposition—using great British coal to make that steel?
Jeremy Quin
I feel that today I have trod on the toes of many Departments in bringing forward many policies from the Department for Business, Energy and Industrial Strategy, the Department for Transport and the Department for Education, which are going to do a great job for British shipbuilding. I am not going to plunge into coal—I will leave that to my colleagues—but I agree 100% that warships will be made in this country by British shipyards doing a great job, as they always have done, in supporting the Royal Navy. The more UK content we can have in those ships, of all forms, the more I welcome that.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
In 1941, Winston Churchill embarked on HMS Prince of Wales to meet President Roosevelt and sign the Atlantic charter. That was a battleship—a warship. In 1947, the royal family embarked on HMS Vanguard to start their South African tour. HMS Vanguard was a battleship—a warship. May I suggest to the Minister that it would be better to spend the cost of a Type 31 frigate on another Type 31 frigate than on a national flagship?
Jeremy Quin
I respect the hon. Gentleman’s views. I remind him that the cost of the national flagship, spread over four years, is about 0.1% of the MOD’s overall budget, so this does not break the bank; it is a relatively small proportion of the overall budget. The ship has a job to do. It is not a matter of being a royal yacht, as the hon. Member for Islwyn (Chris Evans) suggested earlier—it is a national flagship with a job to do. A huge proportion of the most successful cities on earth are on the coastline. It has a job in marketing and spreading the word for global Britain. I think it will be a great success. People decry it now, but I have no doubt that in five years’ time they will be saying it is great and in 30 years’ time they will not be able to imagine us not having one.
Brendan Clarke-Smith (Bassetlaw) (Con)
I thank the Minister for his excellent statement. Does he agree, though, that we should not just rely on domestic demand to drive investment in British shipbuilding but look to sell more abroad, as with, for example, the contract Babcock secured with Poland last week?
Jeremy Quin
My hon. Friend is absolutely right. A lot of work went into that. I spoke to my Polish opposite number only this morning. The Poles are delighted by what they are getting. The Arrowhead Type 31 is a fantastic frigate that will do brilliantly for the Polish navy, which works very closely with the Royal Navy in developing these ideas. We have plans around the rest of the world with our allies and our friends to support their capabilities and at the same time to support design and build here in the UK.
John Spellar (Warley) (Lab)
The Minister prays in aid of his case international rules, but surely that requires international agreement, conformity and consensus. The Government used to claim that the issue was EU rules which no other EU country followed. Then they claimed it was WTO rules. Now it is the international order. Now in the statement they have declared the fleet solid support ships to be warships. Frankly, the last veil has been ripped away and his policy is naked to the world. Why will he not declare that they will now buy British first?
Jeremy Quin
We will be buying British in so many ways among those 150 vessels, but we will be doing that not because we have retreated into a narrow protectionist hole but because the design, innovation and skills in this country will be second to none as we work through the benefits of this refresh. The right hon. Gentleman is trying to hide behind the rules. I am trying to say: let us look at the rules to make certain they work and work in the interests of this country. That is why we have the NSO and SHORE. It is why we will have the home shipbuilding credit guarantee. We are finding ways to assist and to ensure—this is the most fundamental point; I know he wants this as much as I do—that our shipyards are as productive as every other shipyard in northern Europe. We are not there yet, we need to get there and we are determined to make that happen.
Brendan O’Hara (Argyll and Bute) (SNP)
My constituency has 23 inhabited islands and therefore ferries are never far from my mind. Babcock is the site of a state-of-the-art advanced manufacturing facility currently manufacturing Type 31 frigates. Does the Minister agree that this expert workforce are ideally placed to design and to manufacture specialist vessels that could serve Scotland’s island communities, and indeed those across the UK, for many years to come?
Jeremy Quin
I certainly agree that there are great skills and great design capacity in Rosyth. I have seen that for myself. I went there to see the new shipbuilding shed, which is a fantastic bit of work. There is a great workforce and a great sense of optimism, quite rightly, in the yard. From memory, the ferries contract has been awarded elsewhere by the Scottish Government, and it has not been a happy situation, so I would not wish to impinge on their personal grief. But are there good skills in Scotland that could be used, and is Babcock a good option? I would say so, but it is not for me to award these contracts.
Kate Osborne (Jarrow) (Lab)
While communities across the north such as those in my own constituency recognise and appreciate industrial investment in places that share a proud industrial heritage built by generations of craft, skill and dedication, does the Minister recognise that his party was responsible for the decimation of our shipbuilding industry over many years? I join hon. Members across the House in asking him to commit to UK shipyards such as A&P Tyne in my constituency to secure these jobs. I also ask him to commit to involving and consulting the trade unions in the new national shipbuilding strategy.
Jeremy Quin
I and the trade unions I have met, particularly on the Clyde, have the same sort of vision for the future of our national shipbuilding endeavour. That is to have those high skills and to have a workforce who are trained, effective and incredibly proud of what they do, which I know is the case today. A huge number of manufacturing jobs were lost under the last Labour Government; I am afraid that the decline of national shipbuilding has not been under the purview of one party or another. But this party and this Government are determined to reverse that, and we do so by ensuring that we can compete effectively on the world stage and that we have the skills, the innovation, the R&D and the productivity. That is what this refresh is about. We will be winning, and winning well, on the international stage. I know the hon. Lady is as keen on that as I am.
Jim Shannon (Strangford) (DUP)
I thank the Minister for his statement and very much welcome it. There is, as he knows, a great tradition and history of shipbuilding at Harland and Wolff in Belfast in Northern Ireland. It is critical that we in Northern Ireland play a central role in the national shipbuilding strategy. Can he confirm that Harland and Wolff in Belfast will have an important, practical, physical role in that strategy, and that financial benefits related to wage packets and so on will come as a boost for the Northern Ireland economy, which will be a central objective for us in getting the benefit of this strategy as well?
Jeremy Quin
It is fair to say that I am very excited by the prospects of Harland and Wolff. It is great to see a great shipyard with a terrific history hopefully sparking back into life as part of our renaissance across the UK. I am not going to be prescriptive about what yards and what procurements will be involved, as that would be wrong on all kinds of levels, but we have 150 vessels coming through over the next 30 years and £1.7 billion of procurement for MOD vessels by the end of this Parliament. There is lots of opportunity, and I wish everyone well in going for it.
Defence Supplementary Estimate 2021-22
Jeremy Quin Excerpts(2 years, 8 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
John Spellar
My right hon. Friend is absolutely right. It is vital to have a well-established industry to be able to respond to a crisis. The Ministry of Defence and the Treasury need to break out of the ideological straitjacket that states that domestic industry does not matter and we can buy from anywhere in the world. That is a hugely important change.
The Minister for Defence Procurement (Jeremy Quin)
In fairness, I must draw the right hon. Gentleman’s attention back to the DSIS—the defence security industrial strategy—in which we fundamentally changed our process of procurement. We have a new partnership with British industry, and in discussions with them over the last few days they have been extremely forward looking, as I know he would wish.
John Spellar
I would welcome a bit more detail from the Minister as to the nature and engagement of those discussions. I was talking to a representative from the industry only yesterday, and they are seeing precious little coming through. It is not happening in any way on the same scale or intensity as in Germany. We could argue that Germany is doing some catch-up, but it is really engaging with its industry. As my right hon. Friend the Member for North Durham (Mr Jones) has said, we give away huge orders and get little or nothing in return. Even now, the Minister’s own Department refuses to commit to building the fleet solid support ships in the UK, and his colleagues in the Home Office are giving an order for new Border Force vessels to a shipyard in Holland.
Peter Grant (Glenrothes) (SNP)
I was not convinced that I should take part in this debate, because I am possibly the least expert on defence matters in this Chamber, but I do have some comments to make.
Let me begin by saying that I do not think that asking very, very hard questions about defence spending on behalf of any of our armed forces is in any way disloyal to those who put their lives on the line. In fact, I would suggest the opposite, because, sometimes, it is our responsibility to ask the questions and to shout about the concerns that serving members of the armed forces, for obvious reasons, are not allowed to express publicly.
I wanted to speak in this debate because we can argue—no doubt we will continue to argue—about how much the defence budget should be each year. We have already seen the beginnings of an argument on the Government Benches about how much of that should be spent on small equipment, how much should be spent on major equipment and how much should be spent on people. The reality is that there will seldom be enough to spend as much as we would like to on all three areas. What concerns me is that, for far too long, the huge amounts of public money that have been spent by the Ministry of Defence have not been well spent or well managed. That means that, for the amount of money that is put into the defence budget, we do not get the number of soldiers, sailors and air personnel that we could get. We do not get the equipment that we should get, and if we do get it, we do not get it on time.
I have been looking at recent reports from the National Audit Office and from the Public Accounts Committee, which I have had the privilege of sitting on for the past two years. In June 2021, the National Audit Office published a report entitled, “Improving the Performance of Major Equipment Contracts”, because it was picking up on a catalogue of failures, of late delivery, of equipment being delivered that was not fit for purpose, and of contracts going hundreds of millions—sometimes billions —of pounds over budget. It found that in eight of the 19 major programmes under way at the time, the senior responsible owner, the military person with direct responsibility for delivering on that project rated their delivery confidence as “amber/red” or “red”. In other words, the people charged with the responsibility for delivering those projects were not convinced they could deliver what was needed where it was needed and when it wasneeded.
The Public Accounts Committee picked up on that report and took further evidence from the MOD, and our report was published in November 2021. We identified, for example, that the contract for four Astute-class attack submarines was more than £1 billion above budget and the Queen Elizabeth-class aircraft carriers were £2.75 billion over budget. It is easy to look at those numbers in the context of the total MOD budget and say that none individually is a huge percentage, but when we think what £3 billion, £4 billion or £5 billion could do to improve the accommodation that service personnel are living in, for example, and what that would do for morale, that waste of public money is simply inexcusable.
The Committee made a comment that really should have rung alarm bells throughout Whitehall—bearing in mind that this is a Committee where, by its nature, the Government have a majority:
“We are deeply concerned about departmental witnesses’ inability or unwillingness to answer basic questions and give a frank assessment of the state of its major programmes.”
In other words, there was a cultural problem at the highest levels of the MOD and they were not convinced that the Public Accounts Committee, on behalf of this House, had the right to ask such questions.
The hon. and gallant Member for Plymouth, Moor View (Johnny Mercer) said that he regarded parts of the integrated review as dishonest; I must say that some of the financial planning documents that the MOD continue to publish could well be given the same descriptor, because they simply do not give an honest and frank view of the challenges it faces in being able to afford some of its plans over the next 10 years. I mentioned improving accommodation for service personnel, and that was not a random example.
Jeremy Quin
I am grateful for the hon. Gentleman’s comments about some of the decisions made by the previous Labour Government, particularly in relation to the aircraft carriers, although I would not describe having those two aircraft carriers as a waste of Government money. They are an extremely valuable addition to our defence and have an extremely good job to do. I take issue with the idea of any document produced by the Department being, as he was implying, dishonest. We have an equipment plan now that has not been deemed unaffordable by the NAO. For the first time in many years, we are balancing our books and delivering on our programmes.
Peter Grant
I am glad the Minister mentioned the affordability of the equipment programme. I think that plan is dishonest if it describes itself as affordable, for reasons that I will come on to later.
Dave Doogan (Angus) (SNP)
I wish to thank the right hon. Member for Warley (John Spellar) for securing this debate. It is an important debate, focusing as it does on the state’s ability to defend the people of these islands, albeit under the current constitutional arrangements. Sovereignty is the precious prize that elevates countries from the ignominy of sub-state status. We see the value of that with the brave actions of Ukrainians, fighting with everything at their disposal to protect their sovereignty, their independence and the freedom of their people, and all power to them in that battle.
Value in defence terms can be for some an abstract concept, especially in times of prolonged peace at home, but in so far as that has generally been the case for the past 75 years, we should wake from that complacency now, as democracy fights for its very survival in the cities of Ukraine. We see in that conflict the criticality of having the right equipment at the right time in the right place. That necessarily turns the spotlight on the institutionally incompetent defence procurement dynamic with which the UK is encumbered. Even the Treasury does not trust the Ministry of Defence to manage its finances effectively, and categorises it in the third quartile of Government Departments for financial management and capability. I can only assume, therefore, that there is nobody in the fourth quartile.
Any one of the MOD’s headline failures would represent a multi-billion pound betrayal of the taxpayer, but the Ministry of Defence has a veritable conveyor belt of these debacles, from Nimrod to Chinook, through Warrior to Ajax. There will be a lot more said about Ajax tomorrow, but it really takes the biscuit in terms of absolute dysfunctional defence procurement. Creative accounting with rose-tinted projections, which plan for undetermined savings to accrue to the MOD’s balance sheet at some unspecified point in the future, is the culture that manifests claims that we will see the plan come in £4.3 billion under budget—no detail, no plan.
The National Audit Office report on the equipment plan states that the MOD has been
“over-optimistic in their assumptions…of targeted savings”
and has identified a number of costs savings that have no plan as to how they will be achieved—£4.2 billion of extra spending that the MOD has not included. The MOD’s own Cost Assurance and Analysis Service produced an independent assessment of the cost of projects making up 58% of the plan’s costs this year and concluded that they are likely to cost £7.6 billion more than projected.
It is expected that the Dreadnought programme—the largest one in the plan—which is already delayed by six years, will cost an additional £2.6 billion. Early business cases for the new medium-lift helicopter and Future Commando Force show that those programmes are currently underfunded. In the case of the new medium-lift helicopter, Industry primes are currently waiting for the MOD to behave like a procurement organisation that has a clue about what it wants, or even when it wants it—but that is in vain. Despite the taxpayers’ large budget increase to the Ministry of Defence, the equipment plan will go over budget in the next few years of the plan. Ministers are fooling nobody when they discuss how they will make savings somewhere, somehow, over the next 10 years.
On personnel, currently the Army’s target strength will be cut from 82,000 to 73,000 by March 2025, and other top-level budgets must make savings by 2030 equivalent to reducing their count by 6,350, while the cost of the MOD’s civilian workforce needs to be lowered by 10% by March 2025. That finger-in-the-air cost cutting is consistent with neither basic resource management principles, nor the new threat environment faced by the west. The Department’s financial plans once again assume further unspecified workforce cuts of £2.5 billion by 2030, but it has not yet announced how it intends to achieve that, and that almost certainly does not take into account inflationary pressures on either pay or costs of remaining staff.
Armed forces housing is in a shocking state, as other right hon. and hon. Members have stated. Of the armed forces members inhabiting single accommodation blocks, just under half are satisfied with their accommodation and 36% live in poorer-grade accommodation. Despite that, the MOD has failed to invest in adequate housing, and the NAO described its planned investments as not sufficient even to prevent further deterioration in the estate, much less to improve conditions for personnel. If the MOD truly wishes to make the Army smaller but more efficient, it needs to invest in making it a more attractive destination for potential recruits, and shabby accommodation is not a particularly good place to start.
Scotland currently has 2,000 fewer soldiers stationed there than we could expect given our population share, which is doubtless a function of the recruitment issues facing the Army. The range of causal factors is not limited to accommodation, but includes remuneration. Scotland’s progressive tax system mitigates that to some extent, with rank and file often paying less tax in Scotland, while those who live off estate in Scotland pay less council tax on average, and of course they all benefit from free prescriptions.
The financial chaos leading to flip-flopping on base closures and disposals, selling off land at RM Condor in my Angus constituency and then back-pedalling on that, is not helpful either. What is the future for Redford barracks, Fort George and HMS Caledonia, and how long will the MOD stick with today’s vague disposal plans? This culture leaves communities reeling from uncertainty and saving plans that are volatile and not credible.
Scotland has 32% of the UK’s landmass and 63% of its maritime area, yet only 7% of the defence personnel, and no surface warships are stationed in Scotland. That means that when Russia comes knocking on Scotland’s door, the Royal Navy is busy at the other end of this island and takes fully a day to engage.
Jeremy Quin
I have been containing myself during the hon. Gentleman’s speech, because I know there are other contributions to get through before I have my own go, but I cannot let him say what he has just said about the Royal Navy. It is there to protect the whole of the United Kingdom and our interests overseas. We have a huge commitment to the High North going on as I speak. We will also have the whole of our submarine fleet based in Scotland in the future, including our continuous at-sea nuclear deterrent, which is so vital to our interests right now.
Dave Doogan
There is a lot of chest-beating about the nuclear deterrent, but much less discussion about the cost of it. We have heard from hon. and gallant Members how much they would like to see numbers in the Army go up, but they do not talk so much about the cost of the Defence Nuclear Organisation, which is 50% higher than that of the next department, the Army. They are not so focused on that cost. Incidentally, I note the Minister in his intervention did not point out which surface warships there are in Scotland, because there are none.
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.
The Minister for Defence Procurement (Jeremy Quin)
It has been a fascinating debate, ably kicked off by the Deputy Chairman of the Defence Committee, the right hon. Member for Warley (John Spellar). He, like so many of the Labour contributors to this debate, is part of the respectable wing of his party. It is, I think, a great relief to the country that we have my right hon. Friend the Member for Uxbridge and South Ruislip (Boris Johnson) as our Prime Minister at this time, rather than the proposition presented to us by the Labour party at the last election. The leadership he is showing in these difficult circumstances is exemplary.
This has been a fabulous debate, and it is a sadness to me that the time allocated is in no way sufficient to reflect the passion of the contributions and their quality, the huge admiration we have for our serving personnel, or the vital importance of what my hon. Friend the Member for Tonbridge and Malling (Tom Tugendhat), the Chair of the Foreign Affairs Committee, referred to as this critical insurance premium for our country.
As my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie) said, and as my right hon. Friend the Member for Rayleigh and Wickford (Mr Francois) referred to so poignantly in his point of order, it is so shocking that we are debating these issues while war rages in our own continent—that ghastly barbarity to which my right hon. Friend alluded.
Like so many speakers this afternoon, I pay tribute to the extraordinary defence of their country that has been mounted by the Ukrainian forces and civilians. Last summer, I was privileged to attend the 30th anniversary of Ukraine’s freedom celebrations and saw President Zelensky among his own people. I would never have imagined then the emotional scenes we saw yesterday in this House. As the integrated review recognised almost a year ago, the view that post the Berlin wall coming down we would enjoy a perpetual peace dividend could not and should not be assumed. Old aggressors have been reanimated and new dangers have arisen, requiring a forward-leaning and agile armed forces. We need to be prepared to defend and deter threats emanating from Russia and from states that violate international law in such reprehensible and egregious ways.
Mr Francois
We have seen in Mariupol today what the Russians are truly capable of. We must now deter further adventurism. On that point, will the Minister conduct an urgent review of the operational availability of all our equipment? Where things need to be brought up to scratch quickly, will he issue urgent operational requirements—UORs; he knows what I am talking about—to do whatever we need to do to have all our equipment on top line, should we need it, and can we start with Type 45?
Jeremy Quin
I reassure my right hon. Friend that we are absolutely focused on making certain that we have proper operational availability. On Type 45, as he may be aware, Dauntless has come out of the power improvement project and is now on sea trials. Daring has gone into Cammell Laird. We are looking at ways we can advance that process, but I would say that we have two Type 45s out on station doing their job even as I speak.
As the integrated review and defence Command Paper set out a year ago, Russia poses
“the greatest nuclear, conventional military and sub-threshold threat to European security.”
The IR also emphasised the need to strengthen NATO, which is critical to preserving our security and prosperity in the Euro-Atlantic area.
Bob Stewart
I thank my very good friend the Minister for allowing me to intervene on him. The point is that the IR is broken. We clearly need more people in our armed forces, particularly in the infantry. If there is a message from the House, which seems to be in agreement, it is that we need to spend more on defence—up to 3%—and to reverse the cuts, before it is too late, to the infantry. I declare my interest as an ex-Mercian Regiment officer.
Jeremy Quin
I recognise what my right hon. and gallant Friend says and his particular interest in the 2nd Battalion the Mercians. I will not repeat everything that my right hon. Friend the Defence Secretary said in his statement today, but I ask him to bear in mind what we have done over the past two weeks to show our commitment from the eastern Mediterranean, to the high north, to Estonia. By land, sea and air, we have proved our ability to act fast to maintain deterrence alongside our NATO partners.
To reassure my hon. Friend the Member for Poole (Sir Robert Syms), one aspect of the IR was the importance of continuing to train and look after the forces of other friendly nations outside of NATO. He is absolutely right that 22,000 Ukrainian troops are defending their nation now, having had the benefit of training with the British armed forces. As the House knows, we have continued to provide defensive weapons to their support. In reference to the Chair of the Intelligence and Security Committee, my right hon. Friend the Member for New Forest East (Dr Lewis), having defence assets is one aspect, but as he rightly alluded to, having intelligence to inform our actions and showing leadership are the multipliers that enable us to play an even greater role within our alliances, of which our support to Ukraine is a prime example.
We are aware of that growing threat. This Government provided defence with a four-year settlement and a £24 billion increase in the defence budget. That money, which takes the annual defence budget to more than £47 billion for 2022-23 and our equipment plan to more than £238 billion over 10 years, enables us to modernise and improve the defence enterprise. The International Institute for Strategic Studies independently confirmed that the UK maintained its position as the second largest defence spender in NATO and the largest defence spender in Europe.
Consequently, to reassure the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) and his Carl Gustaf, in the coming years, the Royal Navy will have new ships as our fleet increases beyond the 19 frigates and destroyers that we already have, with the steel cut for our first Type 31 frigate, HMS Venturer; HMS Glasgow in build on the Clyde; and consideration already beginning of the Type 32s. That will be underpinned by the doubling of investment in the shipbuilding sector over the life of this Parliament to more than £1.7 billion a year.
To the point made by my hon. Friend the Member for Henley (John Howell), we are continuing to invest in the RAF and particularly in cutting-edge capabilities such as the European common radar system mark 2, which is a fantastic radar system, to meet the operational threats of the future. We are also investing more than £2 billion over the next four years in the sixth generation future combat air system.
Finally, but perhaps most importantly given hon. Members’ comments, the Army is receiving significant investment. It may be leaner but it is more agile and will have greater lethality. We are modernising the Challenger main battle tank; my hon. Friend the Member for South Dorset (Richard Drax) is absolutely right that there is a role for tanks on the battlefield of the future and we recognise that. There will be 50 new Apache attack helicopters on top of the investment of more than £3 billion over the next decade in the accelerated procurement of Boxer to help to modernise our fleet and ensure that our Army is better integrated with its NATO allies.
We have established the National Cyber Force. We are spending an additional £1.4 billion over the next decade on space. If anyone believes that investing in those new domains is discretionary, it is not: only last November, in an act of dangerous irresponsibility, Russia tested an anti-satellite missile. We all know how much we depend on space and space intelligence, surveillance and reconnaissance.
Critically, thanks to our defence Command Paper, we have reversed a long decline in research and development expenditure, which has been ongoing since 1989, with £6.6 billion ringfenced for R&D over the next four years. On procurement, I know that hon. Members support the Government’s commitment to maintaining the nuclear deterrent, as shown by the overwhelming majority of this House who voted to renew it in July 2016.
We remain the leading European NATO ally, clearly exceeding our 2% of GDP defence spending target. We will ensure that the extra £24 billion that we have to invest in defence is spent wisely and appropriately. We will also ensure that, as we made clear in the IR, with that £24 billion of extra investment in defence, we will have the armed forces that we require to deter and defend. We are equally determined that our defence investment continues to match the threat of the future. I commend these estimates to the House.