Defence

Debate between Lord Spellar and Mark Francois
Tuesday 7th May 2024

(6 months, 3 weeks ago)

Commons Chamber
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Lord Spellar Portrait John Spellar
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Is it also the case that these aircraft have considerable aircraft life left in them? It is not as though they are approaching redundancy.

Mark Francois Portrait Mr Francois
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The right hon. Gentleman, a former Armed Forces Minister like me, is absolutely right. Many of them still have half their so-called airframe life remaining. As I have said, they are more than capable of intercepting and shooting down the threat aircraft that they would have to match. That is all the more reason to keep them against a rainy day, rather than flogging them off or breaking them up for parts. Crucially, creating such a war reserve would demonstrate a sign of intent to any potential aggressor that after many years of doing the opposite, the UK is now preparing to fight a sustained conflict with a peer enemy, should that become necessary. Hopefully, in so doing, we will make that eventuality far less likely.

Linked to the vulnerability of our radar stations and the shortage of fighter aircraft are the extremely worrisome delays in airborne early warning. The Royal Navy’s early warning aircraft, Crowsnest, is many years late. It has only recently entered service for the air defence of the fleet. For the Royal Air Force, the Boeing E-3 Sentry AWACS aircraft were withdrawn shortly after the integrated review was published in 2021, leaving us without a mainstream airborne early warning aircraft. The E-3 was meant to be replaced shortly thereafter by the Boeing E-7 Wedgetail, but the programme has been subject to multiple chronic delays and is still not in service.

The RAF is clearly embarrassed by this and is attempting to deploy chaff between in-service dates, when the aircraft could take off the runway, and an initial operating capability, when the aircraft might actually be ready to fight. The latest information I have is that the ISD could now be in autumn 2025, whereas the IOC could be in the first or even the second quarter of 2026, which is still two years away. That leaves a critical gap in our air defence capability for which the MOD, and Boeing in particular, must be held robustly to account. Moreover, the initial buy of five Wedgetail aircraft was inexplicably cut to three several years ago by ministerial fiat, even though we were contractually obliged to buy all five radars, which themselves were very expensive.

In short, the Boeing E-7 Wedgetail is rapidly becoming the RAF’s equivalent of the Army’s Ajax programme—a procurement disaster that has gone on year after year at vast expense to the taxpayer, without actually entering operational service, as Ajax still has not. The Defence Committee, alarmed by that, has invited the head of Boeing Defence, Space and Security, Mr Ted Colbert, to appear before the Committee at Westminster to provide an explanation, although we are still attempting to finalise a precise date for his personal appearance.

Boeing is an organisation in crisis after the sad deaths of more than 300 people caused by the two crashes of its 737 MAX aircraft. We have seen further serious safety incidents, most recently in January when a door flew off an Alaska Boeing 737 MAX 9 in mid-flight. That incident was followed by a number of so-called whistleblowers, involved either at Boeing or in its supply chain, coming forward with very serious allegations about failures in the way the company builds its aircraft. No doubt partly as a result, Mr Dave Calhoun announced that he will step down as chief executive at the end of the year. In the first quarter of this year, Boeing reported a net loss of more than $350 million, and it is still experiencing serious production problems across a range of aircraft, both civilian and military, of which the UK Wedgetail is but one example. The US Air Force also has numerous issues with Boeing, not least in its much-troubled KC-46 air tanker programme.

For many years, Boeing as a company has done extremely well in winning major multibillion dollar procurement orders from the MOD, in return for which it has placed very limited amounts of work on those programmes with the defence industry in the UK. To give specific examples, according to the MOD’s recent figures, on the E-7 Wedgetail, the estimated UK content is around 10%; for the AH-64 Apache, it is only 7%; for the P-8 Poseidon anti-submarine aircraft, it is barely 4%; and for the original CH-47 Chinook helicopters, it was just 2%. According to the answer to a written parliamentary question I tabled, the UK content for the new order of CH-47 extended-range Chinooks for our special forces will generate a UK workshare of about 8%. Taken together with the purchase of the Boeing RC-135 Rivet Joint electronic reconnaissance aircraft, for which no workshare figure is publicly available, that represents some $10 billion of business for Boeing from the UK MOD for which the UK workshare has been 10% at best and 2% at worst. Boeing has done incredibly well out of the UK MOD, while UK industry has done incredibly badly out of Boeing.

Armed Forces Readiness and Defence Equipment

Debate between Lord Spellar and Mark Francois
Thursday 21st March 2024

(8 months, 1 week ago)

Commons Chamber
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Lord Spellar Portrait John Spellar (Warley) (Lab)
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The debate encompasses a wide range of issues. My colleague on the Defence Committee, the right hon. Member for Rayleigh and Wickford (Mr Francois), outlined some of them. I will focus on one aspect: industrial capacity, by which I mean not only the big, well-known manufacturing plants, or the well-known prime companies that we often rightly hear from in the national media, but their extended supply chains and material suppliers, and equally their often under-remarked-on workforce—not just the engineers and craftsmen but the crucial production workers, who are vital for ramping up production and our ability to surge in a crisis. We have experienced difficulties with that in response to the war in Ukraine.

Many in that supply chain also sell to the civilian market, including the public sector. Many of the specialist engineering companies in the midlands supply Formula 1, civil aviation and premium vehicles, as well as defence. They need orders from defence and from public sector bodies to maintain their workload and employment, and to train the workforce of the future. That is why—this will be a theme throughout my contribution—a whole-of-Government approach is necessary. Underlying that is the question of whether we are in a new environment or just an oscillation. Basically, is there a war going on? The people of Ukraine certainly know that. The Baltic nations, Poland, Finland and Sweden know that. It does not mean that war is inevitable, but it certainly means that it is now possible, and failure to respond will actually make it more likely.

One has to question whether the commentariat and the British establishment understand that. The Government need to make clear their view on the state of international relations. Do they regard the invasion of Ukraine by Russia as an interlude—a very bloody one—after which the situation will return to something approximating normal, albeit not the status quo ante, or has there in fact been a tectonic shift, and are we at best back in the cold war, although with a hot war going on in Ukraine and the danger of extension elsewhere along the new iron curtain that is descending over Europe? That is clearly understood not just by the politicians and the defence establishment, but by the publics in Sweden and Finland, with a dramatic shift in opinion, after centuries of neutrality, and their historic decision to join NATO and become very active participants.

Even so, across NATO, there is not that sense of urgency, or a clear realisation of the crisis. Only this week, the boss of the Scandinavian ammunition company Nammo was in the press pointing out that societies were still in peacetime mode. He gave the example of its factory in Norway, which needs additional electricity supply capacity in order to expand. A new site for TikTok has been created nearby, but the factory cannot get enough electricity. He rightly pointed out that the defence of western Europe is slightly more important than cat videos on TikTok. He contrasted that with the Defence Production Act in the United States, which was the Truman-era response to the Korean war, based on the Franklin D. Roosevelt War Powers Act. It gives extensive powers to the US Government, and they are using them. That is why they are responding to the weaknesses in procurement and ramping up production capacity, including through several Government-owned and Government-constructed, company-operated plants. Will the Minister indicate whether our Government are looking at that as a possible mechanism?

Do the Government recognise the fragility of the supply situation? Recent crises such as covid, and the situation in the Red sea and Ukraine, have already shown how vulnerable our supply chains are, and many firms and customers are finding that the so-called cheapest option can end up being very expensive. To be fair, that applies not just to the United Kingdom; all around the world, companies are finding that extended supply lines and single points of failure at home or abroad can have very damaging consequences. The discussion has shifted, and now there is much talk about reshoring, near-shoring and friend-shoring. I am not sure how much of that has penetrated the calcified mindset of our Treasury and the senior civil service, but I hope that the Minister will be able to shed some light on that.

This is not a Eurocentric issue; we must also be aware of the increasing tension in the Gulf, particularly arising from the destabilising impact of Iran and its proxies across the middle east and north Africa, as well as the increasingly aggressive attitude of China, which is why deepening relations through AUKUS and with Japan is so necessary and welcome. I hope that the Minister can report on the success this week at the AUKMIN—Australia-UK ministerial consultations—and AUKUS conferences taking place in Australia. We fully understand why the Secretary of State is there today, rather than responding to this debate.

We have to be clear that these problems did not come out of a clear blue sky. They were shown to us some years ago. The right hon. Member for Rayleigh and Wickford identified the evidence that we had from an American general. When the Americans conducted an exercise with the British Army about an outbreak of conflict in Europe, we basically ran out of munitions in about 10 days, but nothing was done about it. Even once the conflict started in Ukraine in February 2022, and it soon became clear that artillery would play a major role in it, the Ministry of Defence did not place an order for new shells until July 2023. The Minister cannot complain that I have not given him notice of this issue; I have raised it several times in previous debates, and have never had a satisfactory answer about that delay. We cannot afford that degree of indecision going forward. It is not as though we have not had shell crises before; we had one in 1915, which brought down the Government. I am afraid that there does not seem to be much collective institutional memory in the civil service today.

Mark Francois Portrait Mr Francois
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We are giving £2.5 billion in the next financial year to Ukraine, and it is money well spent, but we cannot spend the same pound twice, so does the right hon. Gentleman agree that if we rightly give that money to Ukraine, we cannot then spend it on Army salaries, British shells or submarine maintenance? In other words, it is for the Ukrainians; it is not part of the UK defence budget, is it?

Lord Spellar Portrait John Spellar
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Well, it is unfortunately scored as being in the UK defence budget, and in the claim that we are keeping up defence expenditure; that masks an actual cut in British domestic defence spending. It is absolutely right that we supply the Ukrainians—I think we should be supplying more—as they are on the frontline and are carrying the fight. We—not just us, but the rest of Europe, the United States and the free world—should be backing them up with matériel. I agree with the right hon. Gentleman that trying to slip that into the defence budget, rather than it being part of our national commitment, is the wrong way of handling it.

Even with new production, I am still not clear—perhaps the Minister will clarify this—on what is happening with the increasing capacity for propellants and explosives. Across the western world, very few points—just two or three factories—are capable of making them, and they are stretched to capacity. I understand that difficulty, but I want to know what is being done to create new capacity. I know that the United States is doing it, but what are we doing here and in Europe? In that context, I commend the article from Iain Martin in The Daily Telegraph, in which he says that, whatever our differences with other European countries over the EU and Brexit, we should certainly be working much more closely on maintaining and creating new defence capacity—not just military but industrial as well.

Although I accept that the Government and this House must take the lead, others must follow. If we are, as I have been arguing, in a new defence environment, the City of London and the finance houses must accept their responsibilities. They must make it clear that not only is investment in defence a good investment as it leads part of British manufacturing, but it is their patriotic duty and part of the defence of the free world. However, getting that message across and changing the mindset needs a whole-of-Government approach, not just the involvement of the Ministry of Defence and those of us in the House who are interested in the subject.

As I said to union representatives in the evidence session, the unions have tens of thousands of members in the defence and aerospace sector. They should not stand idly by while mobs try to shut down their workplaces. Only this week, we had demonstrations outside GE Aerospace in Cheltenham, which was, for over a century, the Smiths factory. There have also been protests outside the Leonardo site in Edinburgh, which I presume is the old Ferranti site. I hope that unions are backing not just their members’ employment but the national interest, and will look at whether any funding is going to bodies that are organising to shut those places.

I fully acknowledge the issues facing our uniformed forces, as well as their expertise and commitment. I am pleased that others will highlight their contribution. I regret that the Government have taken their commitment for granted. In any conflict, supply and resupply are crucial. Conflicts are won not just on the battlefield, but—sometimes even more so—in our factories and those of our allies. That is why we need a rethink, a reset and a recovery of lost ground. Will the Government take up that challenge?

Business of the House

Debate between Lord Spellar and Mark Francois
Thursday 10th March 2022

(2 years, 8 months ago)

Commons Chamber
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Defence Supplementary Estimate 2021-22

Debate between Lord Spellar and Mark Francois
Wednesday 9th March 2022

(2 years, 8 months ago)

Commons Chamber
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Lord Spellar Portrait John Spellar
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The hon. Gentleman will see that come through in my speech.

I hope this will, if not eliminate, at least reduce the facile attacks on our defence industry and its skilled, unionised workforce. Can we have no more ill-informed pressure on the City and pension funds to disinvest in defence firms, and no more blockades of their factories?

Likewise, the Foreign Office and the Ministry of Defence cannot be mere observers. They have to engage, and the Treasury has to provide the funding to enable that engagement to be meaningful. They should follow the example of the great Ernie Bevin, who coincidentally was born on this day in 1881. He had the strategic genius to create not only the biggest trade union in the country, if not the world, but the NATO alliance. Furthermore, when American Secretary of State George Marshall gave his speech at Harvard in 1947, Bevin seized on a single sentence:

“The initiative, I think, must come from Europe.”

Through his energy and persuasion, Bevin generated a European response of sufficient weight and urgency to Marshall’s implied offer of American support, and the reconstruction of Europe followed thereafter.

Incidentally, Bevin also saw the need to create the Foreign Office’s Information Research Department to engage in the battle of ideas and the battle to counter disinformation—that is a crucial part of the spectrum—not only in the UK but across Europe. Also engaged in that struggle of democracy versus totalitarianism were leading Labour figures in the IRD Denis Healey and Richard Crossman, who had of course also played a prominent role in the wartime Political Warfare Executive. This cause is currently being championed in the NATO Parliamentary Assembly by its president, US Congressman Gerry Connolly, to put at its heart the democratic values on which NATO was founded.

Now we have to make our defence and security architecture fit for purpose for this existential struggle. Some of that is about recreating past capability and restoring our vandalised capacity for watching and understanding the dynamics of the Russian regime and, indeed, of Ukraine —the neglect of that after the fall of the Berlin wall was a scandal—and some of it is about recognising the relentless political nature of this struggle and funding organisations with multiple skills to wage it, while fully integrating our capacity.

I find it unusual, if not extraordinary, that the Chief of the Defence Staff and the heads of the intelligence agencies attend the National Security Council only as and when. Resources are crucial—that is what this debate is about—but mindset and doctrine are also vital.

Mark Francois Portrait Mr Mark Francois (Rayleigh and Wickford) (Con)
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The right hon. Gentleman and I are both former Armed Forces Ministers. I have sat on the Defence Committee for five years, and he has served far longer than me and is now our excellent vice-Chairman. He can attest to the fact that the Committee has been warning about the increasing Russian threat for several years. Some of us were derided as hawks who always said the Russians were coming. Well, the Russians have now well and truly turned up, so the Committee was basically right. Does he agree that we must now review the entire integrated review, because what happened two weeks ago was a complete game changer in security terms?

Lord Spellar Portrait John Spellar
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I thank the right hon. Gentleman for his interventions not just in the Chamber but in the Defence Committee on these important issues. This is pertinent to a debate on the estimates, because resources and finances are obviously crucial, but it is the doctrine, the mindset and the organisation that decide the outcome. It is the same in Ukraine, where the morale of the Ukrainian forces, who are fighting for their homeland, is crucial when facing a conscript army who are not sure where they are or why they are there. That is why we have to get this right. We need an increase in the Budget in a couple of weeks’ time, but we also need a reset in our thinking.