UK-US Co-operation on Using Atomic Energy for Mutual Defence

Lord Bilimoria Excerpts

Wednesday 23rd October 2024 Grand Committee

[Lord Bilimoria (CB)]

My Lords, AUKUS is of course an acronym for the trilateral security partnership between Australia, the United Kingdom and the United States. There are two pillars of defence: first, a conventionally armed nuclear-powered submarine fleet for Australia, supported by the UK and the USA; secondly, co-operation in advanced capability, including AI.

As a trustee of Policy Exchange, I can say that we coined the term Indo-Pacific as opposed to Asia-Pacific, as it used to be referred to. With the UK’s renewed policy focus on the Indo-Pacific, that is timely. We have joined the CPTPP. We should also join the Quad, with India, the USA, Japan and Australia, making it Quad Plus, circling the world. Does the Minister agree? That would enhance our membership of NATO and Five Eyes, and our security would be greatly enhanced, but—I will come back to this later—we should spend 3% of our GDP on defence. Our Armed Forces—the Army, the Navy and the Air Force—are far too small in numbers of people; I say that as a proud honorary group captain in 601 Squadron of the RAF.

Prime Minister Rishi Sunak assured us in March 2023 that an additional £5 billion would be provided by the MoD for the AUKUS programme and that sustained funding would be provided. Can the Minister confirm that? The Government have also said that this would create thousands of jobs here in the UK and in Australia.

Gideon Rachman wrote an excellent article in the FT this February in which he said:

“China has repeatedly attacked Aukus as dangerous and confrontational. Shortly after it was launched, Boris Johnson, Britain’s prime minister at the time, gleefully lampooned the ‘raucous squawkus from the anti-Aukus caucus’”.


He concluded:

“The pact is ultimately a statement of resolve and long-term commitment. It is based on a shared perception of the growing strategic threat from China and Russia as they work together to overturn the current international order. That perception seems more pressing and valid than ever”.


He said that in February, and it is truer than ever now.

The noble Lord, Lord Risby, who led a debate on AUKUS in February this year, referred to AUKUS as a “technology accelerator”. I think that is fantastic, because there is huge potential in enhancing our security but also powering ahead with our innovation and research and development capabilities—all things that this country has always been fantastic at.

When I was president of the CBI, one of my priorities was to promote government, business and universities working together, not just in the UK but across borders. As chancellor of the University of Birmingham, I was very proud when we won two Queen’s Anniversary Prizes, one of them for Rolls-Royce and its work in aero engines. We have seen time and again that when you do cross-border collaboration between two universities—in Birmingham’s case, with Panjab University in India or with Harvard University in the United States—the field-weighted impact of collaborative research is three times higher than if the university does it on its own. Could the Government through AUKUS promote this cross-border, collaborative approach, with universities, government and business working together?

Pillar 1 of AUKUS focuses on supporting Australia to acquire its first conventionally armed nuclear-powered submarine fleet, as the noble and learned Lord, Lord Goldsmith, said in his excellent opening speech. It does not involve the transfer of nuclear weapons to Australia. Pillar 2 focuses on co-operation in eight advanced military capability areas: artificial intelligence, quantum technologies, innovation, information-sharing, cyber, undersea, hypersonic and counter-hypersonic, and electronic warfare domains.

The UK-US mutual defence agreement, which many noble Lords spoke about, was established in 1958 for co-operation on nuclear materials, technology and defence and is meant to be renewed every 10 years. This seeks to extend naval nuclear propulsion co-operation to all naval vessels, and the proposal now removes the 10-year renewal requirement for Article III bis—as the noble and learned Lord, Lord Goldsmith, mentioned—allowing continuous co-operation. We have been assured of the Government’s commitment to transparency and parliamentary accountability within national security limits. However, there are concerns over reduced parliamentary oversight with the removal of routine reviews of Article III bis. That is worrying. Here is a fact: the MDA amendments would lessen routine parliamentary scrutiny. On the other hand, the United States Congress will conduct far more rigorous scrutiny than us over here in the UK Parliament. Do the Government feel that this is a healthy position to be in?

Pillar 1 focuses on Australia’s acquisition of a nuclear-powered submarine fleet, leveraging UK submarine design and technology, with £3 billion allocated over two years. Pillar 2 emphasises developing advanced capabilities—AI, hypersonic and quantum technology, as I said earlier—and enhances interoperability among armed forces. The UK hosted the first AUKUS AI trial in April 2023, demonstrating this military collaboration, which I will come to later.

However, concerns exist about US export regulations impacting co-operation. An open general licence was issued for AUKUS nations as of 1 September 2024, and the Minister, Luke Pollard, outlined ongoing efforts with AUKUS partners to develop undersea capabilities, including launching and recovering uncrewed underwater systems from British and American submarines, integrating this into the SSN-AUKUS design.

The traditional NATO structure was to be a deterrent to Soviet expansion, but with AUKUS members there are huge incentives: for Australia, the concerns over China’s military growth and sovereignty threats; for the UK, to deepen our ties with the United States, enhance military collaboration and expand Pacific exports; for the United States, to maintain military dominance against rising Chinese and Russian assertiveness.

On Australia’s industry capacity constraints, there is scepticism in some quarters in Australia about AUKUS that we continue to need to address. The evolution of AUKUS could yield a new form of plurilateral defence alliance, addressing collaborative military capability needs and the emphasis on flexible investments in inter- operable military capabilities to adapt to geopolitical threats. This also strengthens the UK’s position in global security and military collaboration, and opportunities for technological advancement and military exports, particularly in the Indo-Pacific.

For over 65 years, the UK and the US have co-operated on defence nuclear issues. Established as an amendment to the post-World War II US non-proliferation law, the MDA exempts allies from making significant advancements in nuclear weapons from the general ban on exchange leading to proliferation.

I will be absolutely clear about the three amendments. Article 4 makes naval nuclear propulsion co-operation reciprocal, allowing the UK to share technology and information with the US. Article 5 removes the expiry provisions of Article III bis, allowing the MDA to remain in force on an “enduring basis”, which I have spoken about, and eliminating the 10-year renewal requirement. Article 13 ensures that the information, material or equipment shared under the MDA will remain protected if terminated by either party in the future. But no one has mentioned this: a joint nuclear skills plan aims to double apprentices in the sector, enhancing the workforce. We have a Budget coming up. I hope that the Government address the huge flaws in our apprentice system. The apprenticeship levy needs to be reformed wholesale, and with regard to AUKUS. Does the Minister agree?

The review will maintain UK defence ties in the Indo-Pacific, prioritising objectives to create a deliverable defence plan supporting AUKUS. Is this a separate plan? Will it be apart from the strategic defence review or part of it?

As I mentioned earlier, we had a world first as the UK hosted the inaugural AUKUS AI and autonomy trial. This exemplified strong trilateral co-operation in AI capabilities, enhancing operational effectiveness and decision-making speed. Over 70 military and civilian defence personnel and industry contractors participated in the AUKUS AI trial, involving various air and ground vehicles. Milestones included live retraining of AI models inflight and immediate sharing of updated information among AUKUS partners, which is tremendous news.

The reforms will lift export controls, potentially covering £500 million of UK defence exports annually. The UK has issued an open general licence, easing licensing requirements for advanced defence capabilities and technical data among AUKUS partners.

The noble Lord, Lord Hannan, referred to this: there are discussions about expanding AUKUS to Canada, South Korea, Japan and New Zealand, but I am led to believe that these nations are not yet ready to proceed. Could the Minister confirm whether the Government are encouraging this expansion? US export regulations, particularly ITAR, hinder collaborative defence innovation, posing significant challenges for AUKUS. Could he address that issue?

In 2019, in the debate on NATO’s 70th anniversary, I said that we should spend 3% of GDP on defence. I said that five years ago, and I have been like a stuck record ever since. The MoD is facing funding challenges. Our defence budget today is £54.2 billion. Our spending on defence was higher in real terms in 2010, at £57 billion, than today. That was a golden era for our Chinese relationship and with no threat from Russia and Ukraine. There was not a huge conflict going on in the Middle East, as we have today. We are spending too little on defence.

Our full-time Armed Forces number 192,760 in total—Army, Navy and Air Force combined. I have said this time and again: my father’s army, the central army in India, was 350,000 strong. In the debate on the strategic defence review earlier this month, the noble and gallant Lord, Lord Stirrup, said that we have a

“shrinking and hollowing out of our Armed Forces”,—[Official Report, 9/10/24; col. GC 226.]

and the noble Lord, Lord West, said that

“money was the elephant in the room”.—[Official Report, 9/10/24; col. GC 227.]

I concluded my speech by saying that:

“The price of freedom is not free”.—[Official Report, 9/10/24; col. GC 250.]

Public Health (Coronavirus) (Protection from Eviction) (England) (No. 2) (Amendment) Regulations 2021

Lord Bilimoria Excerpts

Monday 19th April 2021 Grand Committee

[Lord Bilimoria (CB) [V]]

My Lords, it is very good that the ban on commercial evictions has been extended to 30 June and the bailiff-enforced eviction ban has been extended to 31 May to protect residential tenants. As president of the CBI, I should like to say that we are very grateful for the many times that the Government have listened to business and shown flexibility and adaptability.

It is right to continue supporting renters with the cost of living and to align this with the Prime Minister’s timely road map, particularly when tenants may continue to be on furlough or working in sectors that cannot reopen for some weeks yet. For the some 49% of hospitality workers who have suffered so much during this pandemic, and the 36% of retail workers currently renting, the new measures will protect jobs as businesses reopen and many more renters can return to work.

However, landlords may be asking how, in some cases, the growing rental debt will be managed after the protection ends. The issue cannot be addressed if parties fall out with each other the moment the protection ends. The Government should be seeking to avoid a cliff-edge in June for residents and landlords and, where possible, helping tenants and landlords to work together to secure fair tenancy agreements moving forward. That should be a priority, as the Minister will agree.

The Government have promised mediation support for resolving issues where disputes arise, and this must be available to all who need it. We could produce a heavy caseload for mediation if the Government can publish guidance for tenants and landlords that will help negotiations to be held in a fair and transparent manner, in good time ahead of May.

It is positive that the Government continue to be clear about giving at least six months’ notice for evictions where eviction notices are necessary, as the Minister said. The Government appear to have launched a new free mediation service for disputes, so you can add this free service’s helpful support for tenants at what could be a difficult time, hopefully avoiding the need for court action. Can the Minister confirm this?

There is still so much uncertainty for the rest of the year around people’s employment as the economy reopens. Health and caring responsibilities continue to impact on people’s ability to work, so it is right that tenants are protected from evictions and given the opportunity to resolve them.

Public Health (Coronavirus) (Protection from Eviction) (England) (No. 2) Regulations 2021

Lord Bilimoria Excerpts

Thursday 18th March 2021 Lords Chamber

[Lord Bilimoria (CB) [V]]

My Lords, it is so good to see my university friend the noble Lord, Lord Wolfson of Tredegar, at the Dispatch Box. I also congratulate my noble and learned friend Lord Etherton.

When these regulations were debated before, in February, it was the noble Lord, Lord Kennedy of Southwark, I think, who pointed out that Citizens Advice had estimated that close to 500,000 renters were in arrears and at risk of Covid-19-related eviction. Already, more than 174,000 private tenants have been threatened with eviction by their landlords or letting agents. Even at the start of the pandemic, a year ago, two-thirds of private tenants had no savings, and 45% of private renters have lost income since March.

The Government are right to say that nobody will lose their home because of coronavirus. We understand that the majority of residential evictions are on hold until 31 May. It is right to continue supporting renters with the cost of living and to align ourselves with the timelines of the Prime Minister’s road map, particularly as tenants may continue to be on furlough, or working in sectors that cannot reopen, for some weeks yet. With around 49% of hospitality workers and 36% of retail workers currently renting, the new measures will protect jobs as businesses reopen and many more renters can return to work. The hospitality industry has been decimated over the past year.

Landlords may be asking how, in some cases, the growing rental debt will be managed after the protection ends. The issue cannot be addressed if the parties fall out with each other the moment the protection ends. Does the Minister agree that the Government should seek to avoid a cliff-edge in June for residents and landlords, and, where possible, help them to work together to secure fair tenancy agreements as we move forward? That should be the priority.

Does the Minister also agree that the Government have promised mediation support for resolving disputes, and that that must be available to all who need it? We could reduce a heavy caseload for mediation if the Government published guidance for tenants and landlords. It would help negotiations to be conducted fairly and transparently and in good time, ahead of the end of May deadline.

As President of the CBI I know that the Government have provided huge support—£400 billion over the past year—and that in the Budget two weeks ago the Chancellor rightly extended that support into the summer, with measures that included extending the furlough, business rates relief and a reduction in VAT to 5%. This will give businesses the chance to bounce back and emerge from the pandemic. It will save jobs and businesses.

EU Referendum and EU Reform (EUC Report)

Lord Bilimoria Excerpts

Wednesday 15th June 2016 Lords Chamber

[Lord Bilimoria (CB)]

My Lords, there is a great deal I do not like about the European Union. No one knows who their MEP is. MEPs have no connection with the people they represent and are not accountable or representative. The EU Parliament moving from Brussels to Strasbourg every month for a week is a ridiculous waste of time and money. The euro is a complete failure—one size will never fit all. It is surviving only because it is more difficult to dismantle than keep together. I used to think we lost out on tourism and business visitors by not being in Schengen; now we are fortunate, given the migration crisis and security concerns, not to be in Schengen. I am a true Eurosceptic.

However, given a choice, I have no hesitation in saying that we should remain in the EU. I thank the noble Lord, Lord Boswell, and his committee for producing their reports. I came to this country from India as a 19 year-old student and I have seen the immense change in this country from the time I arrived in the early 1980s, when it was the sick man of Europe, to today being the envy of Europe. The transformation is remarkable. Back in the 1980s, this country had a glass ceiling. Today it is a country of aspiration and opportunity where anyone can get to the top, regardless of race, religion or background. We have seen the highest cumulative GDP growth rate in the European Union since the single market began in 1993. For the United Kingdom it is 62% versus Germany, for example, at 35%. On this point alone, the well-known economist David Smith said in the Sunday Times:

“Britain succeeds in the EU: we’d be daft to leave it”.

This country, with its flexible labour market and open economy, has given me the opportunity to build Cobra Beer from scratch. When we first exported Cobra we chose European Union countries to export to because it was so easy. Now we have exported to more than 40 countries.

I cannot believe that Vote Leave could put out a TV advertisement that states the UK pays £350 million into Europe every week, and then states the purported health spending that this could result in. This is complete nonsense. It should have been taken down by the Advertising Standards Authority. The Vote Leave campaign cannot even get its sums right. We get a rebate from Europe that brings it down to about £150 million a week. If we leave, our current growth rate of 2% a year might flatline or even go into recession. That would be a drop of well over £30 billion —four times our net contribution to the EU.

This country has to wake up and smell the coffee. The Vote Leave campaign is based on a number of bogus claims. Brexit bogus claim number one is about loss of sovereignty. What loss of sovereignty? We are in the EU, but not in the euro; we are in the EU, but not part of Schengen; we are in the EU, but we drink our beer in pints not litres; we are in the EU, but measure our roads in miles not kilometres. No one can tell this country what to do. We have total sovereignty.

Brexit bogus claim number two concerns the lack of democracy. There are elected Members of the EU Parliament. The EU Commission is appointed by elected representatives from each country. We are having a referendum on EU membership right now and we can pull out of the EU whenever we want. Where is the lack of democracy?

Brexit bogus claim number three: Vote Leave says EU regulations cost British businesses £600 million a week. Where has this figure come from? It is completely subjective to try to quantify the impact of red tape. The claims are made by people who have never run a business in their life. Of course there are unpopular regulations, but there are good regulations that protect workers’ rights. I can assure noble Lords that when you run a global business, as I have, you do not think about EU red tape, you just get on with it. The biggest barriers to business are the UK’s own overly complex, vast and continually increasing taxation, housing and planning laws. These are self-inflicted by the Government of the day and are nothing to do with the European Union whatever.

Brexit bogus claim number four concerns migration. Immigration has benefited this country over the decades. EU immigration has been continually demeaned and vilified by Brexiteers. There are 3 million EU migrants working in the UK. This has built up over a number of years and we know how hard-working they are. For example, surveys show that the Polish community is respected and appreciated by the British public and seen as contributing to our country. We have one of the highest levels of employment on record. We have one of the lowest unemployment levels ever seen—in fact, in practical terms we have full employment, despite 3 million EU migrants. Where is the problem? There are a few bad apples trying to take advantage of our welfare state, but, on the whole, EU migrants have helped us to become the fastest growing country in the EU and they contribute to this economy five times more than they take out.

People talk about a drain on public services. If we need 3 million people to boost our economy, our Government have failed if they have not been able to provide the necessary accompanying public services. In fact, our public services would collapse without the contribution of those 3 million people. Our country needs migration due to our ageing population. Misleading nonsense is proliferating from the Vote Leave campaign about immigration, which states that if we leave the EU we will be able to take in immigrants from elsewhere. Michael Gove has said that he wants to bring net migration down to the tens of thousands. We have net migration of 330,000 now, of which half—about 180,000—is from outside the EU. Even if EU immigration stops dead on Brexit, we still have well over the tens of thousands. Their argument is illogical and the public should not fall for it.

Brexit bogus claim number five is that we could negotiate more trade deals with other countries and we would be in control of our destiny if we left the EU—that we could engage in trade deals with India and America. We are the second-largest recipient of inward investment in Europe. Some 60% of companies operating in the EU have their headquarters in the UK. Would they continue to if we leave? Of course not. Our inward investment would dry up and London would no longer be the number one financial centre in the world. Other countries see the UK as the gateway to Europe. As a professor from the Harvard Business School, of which I am an alumnus, said, we would be mad to leave the EU. If we were to have a deal like those of Switzerland or Norway, we would still have to agree to free movement of people and we would still have to contribute—maybe not £8 billion, but maybe £4 billion.

The Brexiteers tell us that those advising against leaving the EU should not be listened to: “Who are they to tell us? They’ve been wrong in the past”. We do not live in a vacuum. We are an integrated member of the global economy. We are not a superpower, but a global power—we sit at the top table of the world: the UN Security Council, the G7, G8, G20, NATO and the EU. If we leave, we jeopardise our standing in the world and our future investment. I did not think I would ever quote the Prime Minister’s wife, but she said:

“I want my children growing up with the advantage of starting their careers in a country that is a big fish in a big pond, leading the way in Europe”.

If we leave the EU we will be a tiddler in an ocean.

Brexit bogus claim number six is that the EU is in a mess and our share of trade with it has been falling. That is quite obvious because we are trading more with emerging markets, but the EU still accounts for 44% of our exports and 55% of our imports. It is too big to jeopardise.

Brexit bogus claim number seven is that there will be further integration, leading to a superstate, and we will be dragged into EU bailouts. There will never be a united states of Europe. I come from India, a country that is a true federal state. Europe will never look like that. The Prime Minister’s negotiations have ensured that we are not committed to further unification and bailouts in the future.

Brexit bogus claim number eight is that there will be an EU army that will subsume the British Army. This is complete fantasy. This will never ever happen. It is also claimed that peace in Europe has been brought about by NATO. It has been brought about by NATO and the European Union.

Brexit bogus claim number nine is that Turkey will become a member of the EU and we will not be able to stop 75 million people coming here. Turkey is light years away from joining the European Union—this is scaremongering.

Lastly, Brexit bogus claim number 10 is that the EU is an economic mess, with youth unemployment up to 50% in countries such as Spain, Italy and France. These countries have been in a mess since 2008-09, when the financial crisis began. We, on the other hand, because of our flexibility and control of our destiny, have thrived. The fate of these EU countries has not prevented us succeeding and getting our economy back on track. Even if the economies of Europe absolutely implode and Europe breaks up, I would rather we were at that table trying to help out and knowing what is going on. As has been said, I do not want to jeopardise our own United Kingdom in a Brexit situation, where Scotland might want to leave. Then there is the huge number of years it has taken to get to the present Northern Ireland situation, which would be jeopardised.

Brexiteers try to say that they are the ones who are proud of Britain. I am proud of Britain—a country that has given me everything, that is not isolationist, selfish or blinkered. What speaks more about a country than anything else is its spirit and values. British people are respected around the world for their values. If we Brexit, we will be sleep-walking over the cliffs of Dover into huge uncertainty and instability. Even Brexiteers are saying that it will take years to renegotiate our position with Europe. A protracted period of negotiations, a possible recession, the loss of jobs—we have a fragile recovery and huge debt. We have a current account deficit and a budget deficit. Why risk all this when we do not have to? It is far wiser and far more productive for us to try to reform the EU from within. Why destroy the growth we have achieved? Why risk our standing as the fifth largest economy, with the highest growth rate in the EU and the largest amount of investment in the EU?

There is an African proverb: “If you want to go fast, go alone; if you want to go far, go together”. We are in control of our destiny and we have our sovereignty. I conclude with a very short poem—my favourite poem—written by the Indian Nobel laureate Rabindranath Tagore, which is so pertinent to what we are speaking about:

“Where the mind is without fear and the head is held high

Where knowledge is free

Where the world has not been broken up into fragments

By narrow domestic walls

Where words come out from the depth of truth

Where tireless striving stretches its arms towards perfection

Where the clear stream of reason has not lost its way

Into the dreary desert sand of dead habit

Where the mind is led forward by thee

Into ever-widening thought and action

Into that heaven of freedom, my Father, let my country awake”.