Defence Reform Bill

Debate between Lord Arbuthnot of Edrom and Peter Luff

Tuesday 16th July 2013 Commons Chamber

[Mr Arbuthnot]

Oh, good. One problem is that the date for the invitations to negotiate has already slipped. That was meant to take place this month, but it is now taking place in August. Let us hope there is no further slippage. We have not heard that any is expected; let us just hope.

[Peter Luff]

My right hon. Friend is making an important point. I hope that when the Minister winds up the debate, he will provide some clarity about the invitations to negotiate. They must not be allowed to slip beyond August, as any further slippage would put at risk the rather challenging timetable that the Secretary of State has outlined.

[Mr Arbuthnot]

My hon. Friend, as a former Minister responsible for defence procurement, has a great deal of expertise. Despite the enormous qualities of his successor, I was very sad to see him leave his job. He has got this point absolutely right.

I am going to divide the final question on this defence procurement issue into three. We understand that the process of moving towards a GoCo, if a GoCo is accepted, will be taken in two stages, with perhaps one domain paving the way to be followed by the rest of defence procurement. My questions are: first, what will be included in the first domain? Secondly, how long will it take for the Government to work out whether it has succeeded, so that the remainder of defence procurement joins the first domain? Thirdly, how will anybody work out, within a period of less than 10 years—many of these defence contracts run for so long—whether this approach has succeeded? My suspicion is that the success of this entire process will be able to be judged only in about 2020. I wish it well and, as I said at the beginning, I am attracted to the idea.

On single-source contracts, the House will be relieved to hear that I have not got very much more to say. I am not sure why this matter requires legislation, because for many decades we have been spending 40% of the defence budget without legislation. It may be that there is a tearing and pressing need for legislation or that the setting up of the regulator is what requires legislation, but no doubt that can be explained. It is startling that the MOD will be able to challenge a contract price already agreed between the parties up to two years after the completion of that contract. I would have thought that would make it a bit difficult for industry to decide how to invest, but, again, no doubt the Minister will deal with that in his wind-up. Will these new rules apply to overseas contractors? Apparently they will not. Does that not create an incentive for UK defence contractors to move abroad? That would be a shame.

Part 3 of the Bill deals with the reserves—once again, I declare an interest because my daughter is one of them. I keep asking this, but I am told that repetition is no shame in a politician: what plan does the Prime Minister have to form an alliance with the Leader of the Opposition and to go out and make it absolutely plain that this reserve forces project must succeed, in the national interest. It must succeed because there is no plan B. Much of the plan has already been welcomed by industry. I think there is a greater job to be done by industry in saying that this must succeed in the national interest, and by the FSB, which, as I say, supports it. Some measures in the Bill—for example, the extra notice for the deployment of reservists—will certainly make things easier for employers. The £500 extra payment has been welcomed by the British Medical Association, as well as by the FSB and others. Perhaps there is more to be done in order to sell this, but the success of the entire process is essential. I welcome this Bill and this part of it as being in the national interest, and I hope that the Prime Minister will be able to get out there and say so himself.

Oral Answers to Questions

Debate between Lord Arbuthnot of Edrom and Peter Luff

Monday 16th May 2011 Commons Chamber

[Peter Luff]

The hon. Lady tempts me to pre-judge the outcome of my own consultation, which I must not do, but let me say this: I share her passion for advanced manufacturing and I again pay tribute to its role in defence. We are committed to both a vigorous promotion of exports and boosting UK defence companies in the UK, and to boosting the work of small and medium-sized enterprises, which are innovative and bring new ideas and skills to defence. We are also committed to maintaining the science budget, as called for in response to our consultation by all those advanced manufacturing companies of which she spoke. We are doing a lot to help advanced manufacturing, but the hon. Lady will have to be a little more patient and wait until the White Paper is published.

[Mr James Arbuthnot (North East Hampshire) (Con)]

Does my hon. Friend agree that Government spending on defence research and technology is absolutely essential for maintaining the battle-winning edge for our armed forces in 25 years’ time? Does he also agree that if there is a reduction in defence research because of short-term budget pressures, the long-term effect will be very great indeed?

Oral Answers to Questions

Debate between Lord Arbuthnot of Edrom and Peter Luff

Monday 8th November 2010 Commons Chamber

[Peter Luff]

The hon. Gentleman is ingenious in his use of his supplementary question. That is not a matter for which I am technically responsible, but I can reassure him that we are still examining carefully the consequences of the decision. That is all I can say at present, I am afraid.

[Mr James Arbuthnot (North East Hampshire) (Con)]

Does my hon. Friend agree that when money is tight, as it quite often seems to be, defence research and technology is an easy target for cuts because the effect is felt some way down the line? We saw that under the last Government. Can we please avoid seeing it under the current Government?

[Peter Luff]

I could not agree more strongly with my right hon. Friend. The last Government’s massive slash-and-burn approach to the science budget was a major scandal and makes our task a great deal more difficult. The SDSR document makes it clear that we are maintaining our essential science and technology investment, and I can tell him that at present, we expect that budget to rise slightly in cash terms over the CSR period. That is not the ideal outcome, but it is a good one and I hope he will welcome it.

Oral Answers to Questions

Debate between Lord Arbuthnot of Edrom and Peter Luff

Monday 5th July 2010 Commons Chamber

[Peter Luff]

If Scotland accepted the case for the nuclear deterrent, the hon. Gentleman’s argument would be a lot more impressive.

[Mr James Arbuthnot (North East Hampshire) (Con)]

It is good to hear about the Department’s planned expenditure and, particularly, from my hon. Friend. Last year, on 20 July, the Ministry of Defence published its accounts, which set out the planned expenditure, and for the third year running those accounts were qualified. Will they be published again this month, and will they be qualified again this year?

[Peter Luff]

They will be published at a very early date, and I am sure that my right hon. Friend’s Committee will take a very close interest in them when they are.