Defence Transformation

Lord Hammond of Runnymede Excerpts

Thursday 1st March 2012 Written Statements

[The Secretary of State for Defence (Mr Philip Hammond)]

As part of the defence transformation project, MOD has been developing a new operating model to implement the changes recommended in Lord Levene’s defence reform report. This includes considering how to deliver acquisition and enabling services more efficiently, effectively and professionally through Defence Equipment and Support (DE&S), the newly created Defence Infrastructure Organisation (DIO) and Defence Business Services (DBS). In doing so, we are looking to make use of relevant private sector expertise.



The Defence Infrastructure Organisation (DIO) was created on 1 April 2011, bringing together all aspects of defence infrastructure, asset management and facilities management under one organisation. The DIO transformation programme will determine both the future operating model and the most appropriate corporate structure for DIO to deliver the support our armed forces need at the best value for money while delivering savings in operating costs.

The DIO has recently conducted ‘soft’ market testing to explore prospective roles for the private sector, determine likely levels of interest from industry and review the commercial principles on which the private sector might be engaged. This exercise gave prospective partners the opportunity to examine a range of delivery options with varying degrees of private sector involvement. The results from the soft market testing process will be used to inform an analysis of the scope for greater private sector involvement in the delivery of DIO services to deliver value for money, and of the appetite of the private sector to enter into such contractual arrangements with MOD.

MOD is also committed to improving performance at Defence Equipment and Support, and ensuring that the organisation has the structures, management and skills it needs to provide the right equipment to our armed forces at the right time, and at the right cost. I have asked the Chief of Defence Materiél to examine options for increasing the role of the private sector in the management of DE&S. These options will be developed and tested further over the coming months, and I will update the House as our thinking matures.

The Defence Business Services (DBS) organisation was created on 4 July 2011 to provide a high quality and professional service to the Department across a range of corporate services, covering civilian human resources, finance, information and security vetting.

As the next step in improving efficiency and effectiveness in these services I now propose, following a competitive process, and subject to a 10-day standstill period, to appoint an external management team from Serco to take over the leadership of DBS. Serco will work with DBS staff to transform the organisation into a lean and effective shared services centre, building on private sector best practice. DBS will continue to be part of the Ministry of Defence and personnel working in DBS will be employed in the same way as all other MOD staff, with the same terms and conditions.

Over its four-year duration, the value of the contract is around £36 million; there is an option for the Department to extend this for a further year. The contract is based on a zero management fee with all Serco’s earning being performance related. Serco will be strongly incentivised to drive down costs and deliver efficiencies and we expect savings of around £71 million to be achievable over the life of the contract.

Together, these three initiatives comprise a significant step in implementing the transformation of defence so it can best support Future Force 2020 as set out in the 2010 Strategic Defence and Security Review.

Oral Answers to Questions

Lord Hammond of Runnymede Excerpts

Monday 20th February 2012 Commons Chamber

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

1. What steps he is taking to balance his Department’s budget.

[The Secretary of State for Defence (Mr Philip Hammond)]

The Ministry of Defence is undertaking its annual budget-setting process, in which I am personally engaged. I am increasingly confident that we will achieve a sustainable and balanced defence budget for the first time in a decade or more, and I hope to be in a position to make an announcement to the House shortly.

[Nadhim Zahawi]

I thank my right hon. Friend for that answer and for the good news that we will be balancing the budget. Will he say a little more about research and development co-operation with France on the unmanned fighter drone and on other matters? How will that affect our ability to balance the budget?

[Mr Hammond]

I am grateful to my hon. Friend for his question. As he will know, I was with the Prime Minister in Paris last Friday, when we confirmed that we will take forward the assessment phase of the medium altitude long endurance unmanned aerial vehicle with the French. Clearly, we can co-operate on many areas with France, a country with a broadly similar industrial base and defence budget to our own. Such co-operation will be to the benefit of both countries, and I intend to explore all those opportunities.

[Hugh Bayley (York Central) (Lab)]

The military action over Libya showed that among the European members of NATO there was a shortage of precision guided missiles, of air-to-air refuelling capacity and of airborne drones to identify targets. Clearly we need to acquire more capacity in those fields, so how sure is the Secretary of State that his budget will enable the UK to play its part in building a stronger European capacity?

[Mr Hammond]

The hon. Gentleman correctly identifies one of the lessons from the Libya campaign. Much of what came out of that campaign was positive, but clearly some shortfalls were identified. I must say that the finger must point primarily at those European members of NATO that fail to spend the target 2% of their GDP on defence. We will be looking to them to contribute the additional resources required to make good the shortfalls.

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

I am delighted to hear that my right hon. Friend is close to balancing the books. Does that mean that we can look forward to an early set of accounts that are not qualified by the auditors, so that we can have confidence in what the books say.

[Mr Hammond]

Speaking candidly, I can say to my right hon. Friend that it will be a number of years yet, as the Department has made clear, before it is able to get an unqualified set of accounts. As Labour Members will know, that is largely due to a legacy problem associated with MOD inventory and the large quantity of stock items held in a form that the National Audit Office is not able adequately to audit. A solution is being put in place—a new IT system will resolve this problem over the next couple of years—and it should then be possible to get unqualified accounts.

[Angus Robertson (Moray) (SNP)]

Scottish taxpayers contribute more than £3 billion a year to the MOD, but according to its own statistics, nearly one third of that is not spent in Scotland. Why is that?

[Mr Hammond]

The last time I checked, most of the people we were needing to defend the UK against were not in Scotland. I think that Scottish taxpayers, like taxpayers in the rest of the UK, would expect that we deploy our military forces and structure our military posture to deal with the threats that we are facing.

[Julian Smith (Skipton and Ripon) (Con)]

2. What steps he is taking to help small businesses secure more contracts with his Department.

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[The Secretary of State for Defence (Mr Philip Hammond)]

In support of the police and other civil and Olympic authorities, the armed forces will provide up to 13,500 regular and reserve personnel to ensure the Olympic and Paralympic games are safe and secure. Up to 7,500 will support the smooth running of Olympic sites, while the remainder will use their specialist capabilities and equipment to contribute to the delivery of Olympic security.

I announced to the House earlier today by written statement that an order has been made under section 56(1A) of the Reserve Forces Act 1996 to enable up to 2,000 reservists to be called out to support Olympic security.

The Army will apply its policy of intelligent selection for the Olympics. Only those reservists who volunteer and who have the support of their employers will be called out in connection with the Olympic games.

[Stephen Hammond]

I thank my right hon. Friend for the scale of support that he has announced. I recently visited the regional fire control centre that is opening in my constituency, which will provide emergency fire control at the Olympics. Will my right hon. Friend offer some insight to the House about who might be in overall command of an emergency or of security, and what procedures he is putting in place to ensure that both the civil and military authorities concerned with the Olympics security will work together?

[Mr Speaker]

I thank the Secretary of State, who had intended to group Question 5 with Question 11. He did not, so I do so on his behalf. I know he will be grateful.

[Mr Philip Hammond]

I had understood that Question 11 had been unstarred. Perhaps I misunderstood.

[Mr Speaker]

I think the Secretary of State did, and I did too. However, the hon. Member for Pudsey (Stuart Andrew) says that he never withdrew it in the first place. A gremlin got into the system.

[Stuart Andrew (Pudsey) (Con)]

11. What contribution the armed forces will make to security at the London 2012 Olympics; and if he will make a statement.

[Mr Philip Hammond]

I am sure we look forward to my hon. Friend’s supplementary question.

In answer to my hon. Friend the Member for Wimbledon (Stephen Hammond), I can say that the safety and security of the games is the responsibility of the Home Office and will be police led. The national Olympic security co-ordinator is the principal co-ordinating police officer for the delivery of national safety and security operations. Military personnel will remain under military command and control arrangements. Defence is working closely with the police and other civil authorities to ensure that that co-ordination between them is effective and that the games are safe and secure.

[Stuart Andrew]

I fear that the House will be sorely disappointed.

Will my right hon. Friend confirm that if reservists are deployed for Olympic security, the services will work with employers to minimise disruption as much as possible to those businesses?

[Mr Hammond]

I am delighted to see my hon. Friend here. His exercise in expectation management was not required.

In my initial response I said that we thought long and hard about whether it was right to call out reserves for the Olympics and the decision was that we would call out reserves only where both the reservists themselves are willing volunteers and their employers have signified that they are willing and able to release them for that period. This call-out will be on an entirely voluntary basis for both the employer and the reservists.

[Mr David Hanson (Delyn) (Lab)]

How many troops does the Secretary of State expect to be in London for the Olympics, as opposed to regional areas, and could he clarify for me what military command and control is, as related to Home Office police responsibility?

[Mr Hammond]

We do not yet have numbers for the final distribution between the different locations, but clearly the major venues will be in London and I would expect the majority of armed forces personnel deployed to be at those venues. With regard to command and control, the police are in overall control. The specific arrangements for integrating the military into the command structure will vary from place to place and task to task. A series of exercises is now taking place, one purpose of which is to test the proposals for integrating military and police command and ensure that they are robust.

[Mark Lancaster (Milton Keynes North) (Con)]

6. What criteria his Department uses when determining individual redundancies in the armed forces.

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[George Freeman (Mid Norfolk) (Con)]

16. What plans he has for defence deployments to the Falkland Islands; and if he will make a statement.

[The Secretary of State for Defence (Mr Philip Hammond)]

The Ministry of Defence routinely deploys a range of military assets in defence of the Falkland Islands and in fulfilment of our standing Atlantic Patrol, South task. Despite media speculation to the contrary, there has been no recent change to force levels. There is no evidence of any current credible military threat to the security of the Falkland Islands, and therefore no current plan for significant changes to force deployments. However, Her Majesty’s Government are committed to defending the right of the Falkland Islanders to self-determination, and plans exist for rapid reinforcement of the land, sea and air forces in and around the islands should any such threat appear.

[Amber Rudd]

I thank my right hon. Friend for that answer. May I press him on the defence plans? Is he confident that the United Kingdom has sufficient naval assets in the area to prevent any naval attack?

[Mr Hammond]

Yes, we are quite confident that we have sufficient naval assets in the area, and we have the ability to reinforce those naval assets should there be any evidence of intent to carry out any form of attack.

[Mr Swayne]

Does my right hon. Friend agree that the withdrawal of HMS Endurance some 30 years ago prompted a subsequent invasion, and that although there is no intention whatever to militarise the south Atlantic, proper precautions are absolutely necessary?

[Mr Hammond]

My right hon. Friend is right on two counts. First, it is absolutely necessary to ensure that our intentions are not capable of being misinterpreted. We have the strongest possible intention of defending the Falkland Islanders’ right to self-determination and the strongest intention to defend the islands. Equally, we have no desire or intention to increase the heat around the debate. We are not seeking to take actions that are provocative or cause unnecessary alarm. We will defend the islands—nobody should be under any illusion about that—and we will deploy the forces necessary.

[Simon Kirby]

May I press my right hon. Friend on that very matter? Will he do whatever it takes to ensure that the only time that the Falkland Islands will not be British is when the Falkland Islanders themselves decide that they do not want to be?

[Mr Hammond]

That is the position of Her Majesty’s Government. We will not discuss the issue of sovereignty of the Falkland Islands unless at any time it becomes the islanders’ wish that we should do so.

[George Freeman]

Does my right hon. Friend agree that the UK has important strategic interests in the south Atlantic, not least in energy security, the important work done by the British Antarctic Survey on climate change and the geopolitics of the Antarctic? Will he update the House on any discussions that he has had with our allies regarding the defence of the Falklands?

[Mr Hammond]

The defence of the Falklands is an integral part of our overall military tasks, and I regularly discuss the conduct of those tasks with our allies as appropriate.

[Sir Gerald Kaufman (Manchester, Gorton) (Lab)]

Does the right hon. Gentleman accept that the determination of the people of the Falkland Islands to remain British must be respected and protected, as it rightly was when a fascist dictatorship grabbed the Falklands 30 years ago? If there is any sign from this crew in Buenos Aires that they are going to try it on again, will he ensure that they are stopped?

[Mr Hammond]

I can answer the right hon. Gentleman unequivocally by saying yes. It is important that we also recognise that the crew in Buenos Aires, as he puts it, is quite a different crew from the fascist dictatorship that invaded the Falkland Islands using conscripts back in 1982. We are dealing with a democratic Argentina that has publicly eschewed the use of military force in pursuing its claim to the sovereignty of the Falkland Islands.

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

I spent some time with HMS Montrose in September last year before it sailed to the south Atlantic. During the discussions over deployment, it became clear that the supply routes to the Falklands for fresh provisions were being severely impeded. Will the Secretary of State say something about the security of supply to the Falklands of fresh food and other services, and about the deployment of the Navy?

[Mr Hammond]

As the hon. Lady knows, an air bridge is operating via Ascension island and other routes into the Falklands are available. The Government are concerned about the actions and statements of some states in respect of access to their ports for Falkland Islands-flagged vessels. We will keep this issue under close scrutiny. We always have the option of increasing the frequency of the air bridge, should that become necessary.

[Mr Denis MacShane (Rotherham) (Lab)]

Are not Admiral Sir Sandy Woodward, Admiral Lord West and General Sir Mike Jackson absolutely right when they say on the record that were the Falklands again to be occupied, Britain would not be able to retake them because this Government do not have any naval aircraft carriers on the high seas? We are in our weakest position in five centuries of naval history, and it is happening on the watch of a Conservative Government.

[Mr Hammond]

The right hon. Gentleman has succumbed slightly to hyperbole. The Government’s position is clear. Our approach is to make clear to Argentina our intent to defend the islands, to deploy the necessary military forces to provide a credible defence of the islands, and to ensure that we are not placed in the invidious position of having to mount a long-range invasion to retake the islands.

[Mr Dominic Raab (Esher and Walton) (Con)]

10. What assessment he has made of the capacity of armed forces from Argentina to enter the Falkland Islands by force.

[The Secretary of State for Defence (Mr Philip Hammond)]

We pay close attention to developments in Argentina’s military capability. There is no current evidence of the intent or the capability to launch a credible military threat to the Falkland Islands. However, we are committed to the protection of the islanders’ right to self-determination and will remain vigilant in our posture.

[Mr Raab]

I thank the Secretary of State for that answer. What impact will the ban on Falklands-flagged ships in Latin American ports have on Britain’s ability to defend the islands? Which Governments in the region can we count on as allies in the unlikely event—let us hope that it remains a very remote possibility—of hostile Argentine action?

[Mr Hammond]

As I have said, the statements that some Governments have been induced to make about access to their ports for Falkland Islands-flagged vessels are most unwelcome, but we judge that they will have no material impact on our ability to defend the islands or reinforce the islands, should that be necessary. I hope my hon. Friend and the House do not mind, but it would not be in the interests of the UK’s national security or of the Falkland Islands to explore in public which regional nations might be friendly to us if there were a need for military action at any time in the future.

[Caroline Dinenage (Gosport) (Con)]

13. What recent progress has been made by the independent review into granting a medal to the Arctic convoy veterans; and if he will make a statement.

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[The Secretary of State for Defence (Mr Philip Hammond)]

Pakistan is an important player in the regional politics and will play an important role in Afghanistan’s future, so Pakistan’s involvement is routinely discussed during regular talks on regional issues with my NATO counterparts, most recently at the NATO Brussels summit that took place on 2 and 3 February. Lasting stability and security in Afghanistan is, I believe, in Pakistan’s interests. We continue to encourage Pakistan to support the Afghan-led reconciliation process fully, recognising that progress could help pay a peace dividend on both sides of the Pakistan-Afghanistan border.

[Gregg McClymont]

The Secretary of State will be aware of the history of the Pakistani intelligence services’ role in the emergence of the Taliban. Is he as concerned as I am about recent reports that the Pakistani intelligence services continue to operate inside Afghanistan? Does that have implications for Afghanistan after NATO leaves the country?

[Mr Hammond]

The hon. Gentleman underlines the fact that Afghanistan and Pakistan are inextricably linked, largely by the big overlap of the Pashtun population in the border areas. We should never forget, as well, that Pakistan has suffered more from terrorism than any other country, with more than 30,000 Pakistanis having lost their lives to acts of terrorism over the past decade. We continue to look carefully at how Pakistan’s security forces and others interact with their Afghan counterparts, and we continue to encourage Pakistan to play a positive and dynamic role in stabilising the area.

[Patrick Mercer (Newark) (Con)]

The Secretary of State will be only too aware of the febrile relationship at the moment between the United States of America and Pakistan—apparent allies. What concerns does he have and what can be done about the safety of Pakistani nuclear sites, which are so close to the Afghan border?

[Mr Hammond]

Obviously, the safety of Pakistani nuclear missile and nuclear weapon sites is of the utmost importance, not only for regional stability but for counter-terrorist efforts across the world. The Pakistan military regard that as a very high priority, and all the information that I have seen suggests a very high level of security and security assurance around Pakistani nuclear sites.

[Nick Smith (Blaenau Gwent) (Lab)]

19. What recent assessment he has made of the cost of the UK carrier programme.

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[Ann McKechin (Glasgow North) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Defence (Mr Philip Hammond)]

My departmental responsibilities are to ensure that our country is properly defended, now and in future, through the delivery of the military tasks for which the MOD is mandated; that our service personnel have the right equipment and training to allow them to succeed in those military tasks; and that we honour our armed forces covenant. It is clear to me that in order to discharge those duties I have a responsibility to ensure that the Department has a properly balanced budget and a force generation strategy and defence equipment programme that are affordable and sustainable in the medium to long term.

[Ann McKechin]

Ministers have already made reference to last week’s meeting between the Prime Minister and President Sarkozy, where they agreed to move on to the procurement phase on the unmanned aerial vehicle project. How many new jobs does the Secretary of State estimate will be created in the UK as a result of this agreement, and how will he maximise the potential for job growth?

[Mr Hammond]

The announcement made at the summit last week was to advance the assessment phase of the unmanned aerial vehicle project, which involves £44 million of expenditure split between British Aerospace and Dassault. I cannot give the hon. Lady an exact estimate of the number of jobs that that will create in BAE, but I am happy to write to her to give her the best estimate I can.

[Jack Lopresti (Filton and Bradley Stoke) (Con)]

T3. Can the Secretary of State update the House on progress made at the recent Anglo-French summit—if any?

[Mr Hammond]

The Anglo-French summit consisted of two separate parts. First, there was a defence meeting where we were able to have direct discussions with my counterpart in France and talk about all the joint procurement programmes and opportunities that we see for collaborating together in future—for example, in the combined joint expeditionary force—and for procuring together as both defence budgets come under financial pressure. The broader summit conducted between the President and the Prime Minister reasserted at the highest level the desire of the two countries to work together in areas such as nuclear collaboration and the unmanned aerial programme.

[Mr Jim Murphy (East Renfrewshire) (Lab)]

Owing to the nature of this question, I will ask it gently. Forces children receive a service pupil premium, but it has recently come to light that a child who is orphaned due to the bravery of their parent in combat loses that payment. I welcome the fact that the Government say they will act upon that, but have they now implemented the change? How many children receive the premium? Can the Minister guarantee that no child will lose the premium as a result of a seriously injured parent being discharged from Her Majesty’s forces?

[Mr John Baron (Basildon and Billericay) (Con)]

T4. Having served with the present commander of British forces in the Falklands, I think the Argentines would be very foolish even to contemplate any sort of military intervention, but does the Secretary of State agree that a strong statement of support from the United States would be helpful?

[Mr Philip Hammond]

Clearly, strong statements of support from any of our allies are always helpful, but the realistic situation, which we have long recognised in this country, is that the defence of the Falkland Islands is a task for which the UK must be prepared and capable of undertaking alone if necessary. We hope that we will have support from others, but that cannot be our planning scenario.

[Mr Stephen Hepburn (Jarrow) (Lab)]

T6. What is the current position concerning the aircraft carrier project? Has there been any change in strategy as far as the design and build are concerned?

[Gareth Johnson (Dartford) (Con)]

T5. I welcome my right hon. Friend’s decision to purchase the new C-17 aircraft for the Royal Air Force. Is that not evidence of the benefits of tackling the Ministry of Defence budget, which is vital to securing the future effectiveness of our armed forces?

[Mr Philip Hammond]

I am grateful to my hon. Friend. In fact, the acquisition of the eighth C-17 aircraft was an extremely high priority for the military. It reinforces the Afghanistan air bridge at a time when the ground lines of communication through Pakistan are closed.

The purchase was possible because the MOD is moving forward with the process of delivering a credible and sustainable budget with which Treasury officials are comfortable. Trust between the Treasury and the MOD has been the crucial missing ingredient in the past, and rebuilding it has allowed the Treasury to sign off the acquisition of the new aircraft from an in-year underspend. The Treasury would traditionally have been very reluctant to do so without seeing MOD hard numbers for the following year.

[Mr Iain McKenzie (Inverclyde) (Lab)]

T7. I thank the Minister for his reply to my right hon. Friend the Member for East Renfrewshire (Mr Murphy) on the service premium. However, was the Secretary of State aware that extra support would be cut off if a serving parent died in the service of their country before it was disclosed in The Sun and other newspapers, which pressured the Government into a U-turn?

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[Mr Philip Hammond]

As my right hon. Friend will know, the whole issue of bases is currently under review. The Army is undertaking a large rebasing exercise in conjunction with the new Defence Infrastructure Organisation, and I hope to be in a position to make an announcement to the House in the not too distant future.

[Eric Joyce (Falkirk) (Lab)]

T8. The Minister with responsibility for veterans will be aware of the call by the shadow Secretary of State for a £1 million legacy veterans fund, to be funded by cuts at the top end. The Minister is well known to be a commonsensical man: will he stand up and say that he agrees with my right hon. Friend?

[Dr Julian Lewis (New Forest East) (Con)]

The Secretary of State’s excellent decision to deploy an anti-air warfare Type 45 destroyer to the Falklands certainly ensures that the islands are protected against aerial attack. That still leaves the danger of surface attack. In the absence of aircraft carriers, can my right hon. Friend confirm that a nuclear-powered submarine is available to protect our warship and the sea lanes approaching the Falklands?

[Mr Philip Hammond]

First, I should make it clear that the deployment of HMS Dauntless to the south Atlantic is a routine deployment and she will rotate with other vessels of the fleet in due course. Secondly, as I suspect my hon. Friend knows, we never comment on the deployment of our submarines of any description. As he has raised the issue, I will take the opportunity to make one thing clear. There has been some speculation in the press and by Argentine Ministers about the deployment of nuclear weapons to the south Atlantic. The United Kingdom has a clear and publicly stated policy that we will neither use nor threaten to use our nuclear weapons against a non-nuclear state that is a compliant member of the nuclear non-proliferation treaty, so the Argentine republic need have nothing to fear on that count.

[Dan Jarvis (Barnsley Central) (Lab)]

The Government have willed an end-date for combat operations in Afghanistan, but not yet an endgame for how we disengage militarily. Can the Secretary of State give an assurance that the sacrifice and outstanding efforts of those who have served and continue to serve in Afghanistan will be underpinned by a departure that is properly planned, co-ordinated and commensurate with conditions on the ground?

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[John Cryer (Leyton and Wanstead) (Lab)]

Further to Question 6, what structures exist to allow concerns about the biggest Army cuts of all time to be raised further up the chain? I am thinking of the sorts of concerns raised earlier by hon. Members on both sides of the House.

[Mr Philip Hammond]

I and my colleagues are asking ourselves, “What’s he talking about?” I’m not quite sure what the hon. Gentleman is referring to. Is he talking about whether the Army is top-heavy? [Interruption.] I am at a loss to know exactly what he is talking about, but we intend to reduce numbers in the senior ranks of the Army in order to address the disproportion there.

[Mr Speaker]

I think that arrangements can be made for a conversation outside the Chamber, possibly over a cup of tea—who knows?—if the hon. Member for Leyton and Wanstead (John Cryer) is lucky.

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[Mrs Mary Glindon (North Tyneside) (Lab)]

When members of the armed forces are facing a two-year pay freeze and 20,000 are losing their jobs, how can the Secretary of State justify bonuses, some of five figures, to senior officers in the MOD civil service?

[Mr Philip Hammond]

I think we have covered this one already. The arrangements for performance-related pay were put in place by the previous Government and were a decision taken by them with which I concurred entirely. It is the right way to incentivise senior civil servants. By paying non-consolidated performance-related pay, we reduce the total cost to the Department. The scheme was introduced in lieu of pay increases.

[Alun Cairns (Vale of Glamorgan) (Con)]

What assessment has the Secretary of State made of the impact of reported collusion between the Taliban and Pakistan on our troops serving in the region?

[Mr Hammond]

The situation on the Afghan-Pakistan border is extremely complex, as my hon. Friend will know. As I said, the Government’s position remains that we repeat continually to the Pakistanis that it is in their interest to engage with the peace process and the reconciliation talks, and to ensure long-term stability in the region.

[Paul Flynn (Newport West) (Lab)]

What precise act of brilliance justifies the payment of an £85,000 bonus to one of the Secretary of State’s civil servants? Will the Secretary of State make a bid for his own bonus for today becoming the first Minister to stop blaming the previous Government for all his problems, and tell the House on what precise date the coalition Government will take responsibility for their own conduct?

[Mr Hammond]

The hon. Gentleman might not have heard my previous answer when I stated the fact that this contractual, performance-related pay system was put in place by the previous Government. I happen to approve of it; I consider it the right way forward. If he wants to ask about the details of its design and why it was done the way it was, perhaps he should ask the right hon. Member for East Renfrewshire (Mr Murphy) or one of his many right hon. Friends who served in the previous Government as Secretary of State for Defence.

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

RAF Fylingdales and RAF Staxton perform key duties as listening and radar stations. There is concern locally about the impact of wind farms on them. May we have a rejection of any wind farm applications on the grounds that they will interfere with the RAF’s work?

Reservists (London Olympic and Paralympic Games)

Lord Hammond of Runnymede Excerpts

Monday 20th February 2012 Written Statements

[The Secretary of State for Defence (Mr Philip Hammond)]

An order has been made under section 56(1A) of the Reserve Forces Act 1996 to enable reservists to be called out for permanent service as part of Defence’s contribution to the safety and security of the London 2012 Olympic and Paralympic games.

In providing support to the police, and other civil and Olympic authorities, Defence will contribute up to 13,500 military personnel at the busiest part of the games, of which up to 2,100, around 15%, will come from the reserve forces.

Some reservists will provide a range of specialist capabilities and expertise while the majority will form part of the support to Olympic venue security operations.

Defence will continue to apply its policy of intelligent selection, designed to identify, in good time, volunteer reservists with supportive employers with the training, skills and availability, in order to minimise the impact of mobilisation upon the individual, their family and employer.

Since 2008, around 2,300 reservists per year have been called out for operations around the world, where they serve to support and strengthen the defence effort, while at the peak in 2004, reservists made up 20% of our forces in Iraq and 12% in Afghanistan.

The reserves will be taking on an enhanced role, following the decision to invest £1.8 billion in equipment and training as we move to a more integrated force by 2020.

There are currently almost 600 reservists in Afghanistan, representing some 6% of the deployed force. As well as augmenting regular units, reservists supply vital skills, in particular medical, and niche logistical and communication expertise.

Both the reservist and overall Defence contribution is on a similar scale to that deployed by other nations at recent Olympic games and will contribute to ensuring a safe, secure and enjoyable 2012 Olympics.

The order takes effect from 16 February 2012 and ceases to have effect on 20 September 2012.

Operation Herrick 16 Roulement (Correction)

Lord Hammond of Runnymede Excerpts

Thursday 9th February 2012 Written Statements

[The Secretary of State for Defence (Mr Philip Hammond)]

I regret that the written ministerial statement I laid on 7 February, Official Report, column 11WS, contained an error of detail. I am therefore laying a revised statement today.

The next roulement of UK forces in Afghanistan is due to take place in April 2012. The UK’s current framework Brigade in Helmand, 20th Armoured Brigade, will be replaced by 12th Mechanised Brigade. The forces deploying include:

Armed Forces Pension Scheme

Lord Hammond of Runnymede Excerpts

Wednesday 8th February 2012 Written Statements

[The Secretary of State for Defence (Mr Philip Hammond)]

Changes to the armed force compensation scheme introduced in May 2011, and armed forces redundancies as a result of the strategic defence and security review, have increased the resource annually managed expenditure (AME) and net cash requirements for the armed forces retired pay, pensions etc. estimate in a manner which could not have been foreseen at the time of the main estimate in April. Parliamentary approval for additional resource AME of £1,340,000,000 has been sought in the supplementary estimate for armed forces retired pay, pensions etc. laid before the House today.

However, the rate of spend under this vote has also been faster than anticipated at the start of the year, for example, because payment of the retrospective additional compensation payments as part of the implementation of Lord Boyce’s recommendations for reform of the AFCS, has proceeded more quickly than expected. The Department therefore needs to make arrangements to ensure the financial obligations of the armed forces pension scheme can continue to be met up until the supplementary estimate is approved. Parliamentary approval for additional resources of £1,340,000,000 is sought in the supplementary estimate for the armed forces retired pay, pensions etc. Pending that approval, urgent expenditure estimated at £340,000,000 will be met by repayable cash advances from the Contingencies Fund.

Votes A Annual Estimate 2012-13

Lord Hammond of Runnymede Excerpts

Tuesday 7th February 2012 Written Statements

[The Secretary of State for Defence (Mr Philip Hammond)]

The Ministry of Defence Votes A estimate 2012-13, will be laid before the House on 8 February 2012 as HC 1735. This outlines the maximum numbers of personnel to be maintained for each service in the armed forces during financial year 2012-13.

These numbers do not constitute the trained requirement of the armed forces, which are published separately in the UK armed forces quarterly manning report.

Votes A Supplementary Estimate 2011-12

Lord Hammond of Runnymede Excerpts

Tuesday 7th February 2012 Written Statements

[The Secretary of State for Defence (Mr Philip Hammond)]

Ministry of Defence Votes A supplementary estimate 2011-12 will be laid before the House on 8 February 2012 as HC 1745. This outlines the increased maximum numbers of personnel to be maintained for service in the reserve naval and marines forces and the reserve land forces during financial year 2011-12.

These numbers do not constitute the trained requirement of the armed forces, which are published separately in the UK armed forces quarterly manning report.

Operation Herrick 16 Roulement

Lord Hammond of Runnymede Excerpts

Tuesday 7th February 2012 Written Statements

[The Secretary of State for Defence (Mr Philip Hammond)]

The next roulement of UK forces in Afghanistan is due to take place in April 2012. The UK’s current framework Brigade in Helmand, 20th Armoured Brigade, will be replaced by 12th Mechanized Brigade. The forces deploying include:

Strategic Defence and Security Review

Lord Hammond of Runnymede Excerpts

Thursday 26th January 2012 Commons Chamber

[The Secretary of State for Defence (Mr Philip Hammond)]

rose—

[Mr Arbuthnot]

I can quite see my right hon. Friend answering, “Well, this is a funny way to go about it,” but I will give way to him none the less.

[Mr Hammond]

I am tempted to say that it is even a grotesque way, Mr Deputy Speaker. In the spirit of my right hon. Friend’s remarks, perhaps I can try to help him. I understand his concern about the voluntary and compulsory redundancy numbers, but the simple fact is that we have set out a trajectory of headcount reduction among the civilian employees of the MOD and among the armed forces. At each tranche we have called for volunteers, and enough volunteers from the civilian population have come forward for no compulsory redundancies to be required. There has been an insufficient number of volunteers from the military population so, regrettably, compulsory redundancies have been required. I do not rule out the possibility that compulsory redundancies will be required among the civilian work force in future.

[Mr Arbuthnot]

My right hon. Friend is, as always, helpful. I hope that he will now address the issue on which there is some dispute of fact—whether those in the military on whom compulsory redundancy is imposed are allowed to offer themselves for retraining; we have heard variously both that they are and that they are not. That is an important issue.

I now turn to the strategic defence and security review—although I do not want to take too much longer because a large number of people would like to speak. One of the main aims of the Defence Committee is to see how the next strategic defence and security review, in whatever year it will be—2014, 2015, 2016; we do not yet know—can be better than the last one. Our criticisms of the last one included the fact that it was rushed to fit in with the comprehensive spending review, and was therefore undertaken without sufficient consultation with academia, industry, Parliament or the country. I heard my right hon. Friend the Prime Minister say that taking longer over decisions does not necessarily make them better, and that is true, but having proper full discussion in the country before such decisions are made would make them more informed.

--- Later in debate ---

[The Secretary of State for Defence (Mr Philip Hammond)]

Let me begin by paying tribute to Signaller Ian Sartorius-Jones of 20th Armoured Brigade Headquarters and Signal Squadron, who died on operations in Afghanistan on 24 January. Our thoughts at this difficult time are with his family and friends. All of us in this House are acutely conscious of the sacrifices being made in Afghanistan on a daily basis by the men and women of our armed forces. The experience of my first 100 days as Secretary of State for Defence has only reinforced my admiration for their selflessness, dedication and bravery, as well as for the commitment and professionalism of the civilians who support them. They are rightly a source of great pride to the nation.

I congratulate my right hon. Friend the Member for North East Hampshire (Mr Arbuthnot) on securing this debate on behalf of the Select Committee on Defence, and on his speech, most of which I wholeheartedly agreed with. I am delighted to have the opportunity to address the House on the defence reform programme that I have inherited, on my approach to it, and on how I will take forward the delivery of the defence outputs required under the strategic defence and security review.

[Mr Gray]

Does my right hon. Friend remember—perhaps he would do so nostalgically—the days when we had at least three debates annually on defence on a Government motion in Government time? Does he agree that this should be a Government debate rather than a Back-Bench one?

--- Later in debate ---

[Mr Hammond]

My hon. Friend will know that the Government took a decision to give a large slug of parliamentary time to the Backbench Business Committee, to be allocated according to the priorities that Back Benchers identify. That was a bold decision for a Government to take. The result is that we have that defence debate today. I hope the Committee notes, as my right hon. Friend the Member for North East Hampshire said, the strong attendance, and that that will mean we have more defence debates on Thursday afternoons in future.

I am delighted also to have the opportunity to address the House—I have said that once so I will not say it again.

[Mr Jim Murphy (East Renfrewshire) (Lab)]

It was pretty good.

[Mr Hammond]

I agree.

Today’s debate is about the reform of defence. That reform is for a purpose. Sometimes, amid the minutiae of budgets and organisational structures, we need to take care not to lose sight of that purpose: the defence of this nation and our dependent territories against those who threaten our security and our national interest.

The challenge we face is to deliver that defence on a sustainable basis within a resource envelope that the country can afford. That challenge must be set in the context of the fiscal and economic circumstances, as other Members have noted. History tells us that, without a strong economy and sound public finances, it is impossible to sustain in the long term the military capability required to project power and maintain defence. The debt crisis is therefore a strategic threat to the future security of our nation and to the security of the west. Restoring sound public finances is a defence imperative as well as an economic one, and defence must make its contribution to delivering them.

[James Morris (Halesowen and Rowley Regis) (Con)]

Does the Secretary of State agree that, in times of economic austerity, it is important that we develop collaboration with our NATO allies to enhance capabilities, so that we can engage with allies to combat some of the threats that we face?

[Mr Hammond]

My hon. Friend is absolutely right. Part of the answer to the questions raised by the hon. Member for Bridgend (Mrs Moon) is collaboration with NATO allies. They can share assets that they have and that we do not have, and we can reinforce their capabilities in other areas. The smart defence agenda is an important one—it involves collaboration among NATO allies in procurement to ensure that we get the best defence effect we can get with the limited budgets available.

As I have said, defence must make its contribution to delivering sound public finances, so even if the defence programme that we inherited had been in good shape, the spending review and the SDSR would have had to find savings to contribute to overall deficit reduction. However, the defence programme that the Government inherited was very far from being in good shape. At its heart, it had a £38 billion black hole filled with procurement projects that were at best hopelessly over budget and out of control, and at worst pure fantasy. They were projects announced by politicians—actually, mainly one politician—without any budget cover or prospect of ever being delivered, in a programme that had no proper contingency, no effective recognition of risk, and no provision for the “conspiracy of optimism” that was evident in MOD equipment cost estimates. The support programme systematically underprovided for the proper maintenance and sustainment of the equipment that was already in service. In short, Mr Deputy Speaker, it was a shambles.

[Hugh Bayley (York Central) (Lab)]

Will the Secretary of State give way?

[Mr Hammond]

I will give way to the hon. Gentleman, who will perhaps explain his way out of that.

[Hugh Bayley]

Were the capital programmes that the right hon. Gentleman’s Government inherited supported or opposed by the chiefs of staff at the time?

[Mr Hammond]

I am obviously not privy to the advice given to Ministers in the previous Government by their defence advisers, nor should I be, but if the previous Government were succumbing to recommendations from the defence chiefs, they were doing them no favours by pretending that they could deliver equipment programmes for which there were no funding lines or budget cover, and when there was no prospect of their materialising.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

rose—

[Mr Hammond]

I am going to make some progress.

Does it matter that Labour’s programme was stuffed full of projects that would never and could never be delivered? I would argue that it did matter, because so long as the fantasy persisted, the doctrine and philosophy of our armed forces—[Interruption.] If the hon. Member for North Durham (Mr Jones) listens, he might understand the point being made. So long as the fantasy persisted, the doctrine and philosophy of our armed forces were built around the notion of those platforms being delivered, when what the forces really need is a realistic programme that we can deliver and that they can have confidence in, so that they can start rethinking their doctrine and operating philosophy for the future around the platforms and capabilities that we will have.

[John Woodcock]

To aid this debate, could the Secretary of State just remind the House whether his party in opposition argued for a smaller or larger Army than the then Government were prepared to support?

[Mr Hammond]

What I say to the hon. Gentleman is that we face the situation that we face. We came into office with a massive deficit, which we inherited from the previous Government, and as I shall argue, we have taken the tough decisions that, frankly, the previous Government shirked over the last few years, thereby doing the armed forces and the country no favours.

By 2010, Britain’s armed forces had endured a decade of high-tempo operations without a formal defence review and were faced with a period of acute fiscal pressure. The case for reform to ensure that the armed forces were restructured and re-equipped to protect our national security against the threats that we would face, within a budget that the nation could sustain, was unanswerable. Tough decisions were necessary to deal with problems on the scale of the inherited defence deficit, and this Government took them. I am clear, as the Prime Minister and my predecessor have been, that whatever the pain, our first duty is to put our armed forces on a sustainable basis by restructuring them for the future and putting the budgets that sustain them on a stable footing. As the SDSR acknowledged, the process of transitioning to Future Force 2020 will require us to take some calculated and carefully managed risks against certain capabilities, most prominent among which are wide-area maritime surveillance, to which the hon. Member for Bridgend referred, and carrier strike.

I regret in particular the cuts in personnel that are required to deliver that rebalancing and make the armed forces sustainable. However, in case any confusion has been created over the last few days, let me clear up one point. The headcount of military personnel will have been reduced by around 18% by 2020 compared with the 2010 baseline. That is in contrast to a 38% reduction in civilian headcount. Regrettably, some of that reduction will have to be achieved by redundancy. Where that is necessary, every opportunity is being given, and will continue to be given, for military personnel at risk of redundancy to retrain for alternative roles of which there are shortages in the armed forces.

I heard the comments of my right hon. Friend the Member for North East Hampshire earlier. Following the publication of the Select Committee’s report, I have asked for a specific briefing on the point that he raised. I would be happy to share that with him after the debate—[Interruption.] I will share it with the right hon. Member for East Renfrewshire (Mr Murphy) as well, if he wishes. It includes a list of the shortage trades for which suitably qualified individuals who are facing redundancy are invited to apply.

[Damian Collins (Folkestone and Hythe) (Con)]

The large number of redundancies in the Gurkhas has inevitably caused concern among them and in my constituency. Will the Secretary of State give me a commitment that the Gurkhas will remain a unique and important part of the British armed forces?

[Mr Hammond]

The Gurkhas remain a very important part of the British armed forces. I think that my hon. Friend understands exactly the problem that we face in regard to Gurkha numbers. Their terms of service were changed as a result of decisions made by the courts and the campaigning pressure that was placed on the previous Government. That means that most Gurkhas have elected to extend their service to 22 years. Consequently, the numbers of Gurkhas in service are projected to be above the levels needed to sustain the two brigades that we wish to sustain. That has given rise to a larger number of Gurkha redundancies than we would have expected to see. That is regrettable but, I am afraid, inevitable.

We are making tough decisions to tackle the massive deficit left by the previous Government and the unfunded defence programme. If those decisions had been easy or popular, you can bet your life that the Labour Government would have taken them years ago. They did not do so, however, and it now falls to the coalition to do the right thing in the long-term national interest. Translating the strategic prescriptions of the SDSR into decisive actions was always going to be a process rather than an event. Turning the corner on a decade of mismanagement will take time and determination.

To shine a bit of light into the end of the tunnel, the Government announced in July 2011 that the MOD could plan on the budget allocated to defence equipment and equipment support increasing by 1% a year in real terms between 2015 and 2020. That amounts to more than £3 billion of new money over the period. Importantly, that commitment was renewed by the Chief Secretary to the Treasury after the autumn statement. That will enable investment in a number of programmes, including the procurement of new Chinook helicopters, the refurbishment of the Army’s Warrior fleet, the procurement of the Rivet Joint, or Airseeker, intelligence and surveillance aircraft, and the development of the global combat ship.

The MOD is currently undertaking its annual budget setting process, which is known as the planning round. I am personally engaged in that process, and I am increasingly confident that we are close to achieving a sustainable and balanced defence budget for the first time in a decade or more. That would be an immense achievement, and would allow us to plan with confidence and to spend well over £150 billion on new equipment and equipment support over the next decade, as well as delivering the force restructuring and rebasing that we have announced. A turnaround on that scale requires a major cultural shift. Defence must change the way in which it does things and the way in which it addresses problems. It must challenge the received wisdom around the doctrines used to deliver defence tasks and around the management of defence itself.

Last month, the Government published the first annual report on the SDSR, which set out in full the progress that is being made. Let me address a couple of salient areas of what the MOD calls “transforming defence”—that is, the journey from the mess that we inherited towards achieving a sustainable, capable, coherent and adaptable force, built on balanced budgets and disciplined processes, by 2020. As I have said, I am clear that the Ministry of Defence must balance its budget. I am equally clear that it does not exist to balance its budget; it exists to deliver effective defence within a sustainable budget envelope.

[Sir Bob Russell (Colchester) (LD)]

Will the Secretary of State give way?

[Mr Hammond]

I cannot resist taking one last intervention.

[Sir Bob Russell]

Does the Secretary of State accept that morale is very important, and if our soldiers, sailors and air personnel and their families are given accommodation that is not fit for purpose, that does nothing to help the Government’s objectives?

[Mr Hammond]

I reassure my hon. Friend that I absolutely agree that morale is very important. I shall come to morale in a moment, and I understand that accommodation plays an important part in that. He will understand that there are thousands of moving parts in the defence budget, and trying to bring them back into balance is a massive challenge. Inevitably, people will always ask us to do more, more quickly, whether on accommodation, front-line equipment or any other area. We must try to balance the equation and get the judgment right.

As I said, the Ministry of Defence exists to deliver an effective solution within a sustainable budget envelope. NATO membership and our defence relationship with the United States and other key allies, such as France and Australia, are a vital part of the strategic solution as we move to Future Force 2020. It will, of course, be a smaller force, but it will be equipped with some of the best and most advanced technology in the world. It will be configured to be agile, focused on expeditionary capability and carrier strike, able to intervene by airborne or amphibious assault, and with the ability to deploy, with sufficient warning and for a limited time, a whole-effort force of about 30,000, or to maintain an enduring stabilisation operation at brigade level while concurrently undertaking one complex and one small-scale non-enduring operation. It will be a formidable regular force, supported by better trained, better equipped reserves who will play a greater role in delivering defence effect on the back of the extra £1.8 billion that we will invest in them over the next 10 years. All that will be underpinned by the expectation that, in most circumstances, we will be fighting alongside allies, and it will be supported with doctrines that will effectively address the threats of the future with the assets that we will have.

The proposal is about finally moving on from cold war reliance on mass to the “lethal and light” doctrines of flexibility and agility that the challenges of the new century require. It is not just the armed forces that need to reconfigure; the management of defence needs to change too, by developing a laser focus on delivering defence cost- effectively and accountably, protecting the front line and the taxpayer at the same time. Under my predecessor, that transformation had already begun. The recommendations of the Defence Reform Unit under Lord Levene were broadly accepted. Many have been implemented and others are in the pipeline. The Defence Board has been reconfigured to provide for a clear, single, joint service voice on military priorities, and a greater role for non-executive directors under the chairmanship of the Secretary of State. I reassure my hon. Friend the Member for Canterbury (Mr Brazier) that the single voice for the military on the Defence Board is supported by an effective armed forces committee, at which the chiefs of the individual services are able to work together to determine their combined order of priorities for the Defence Board’s allocation of available resource. That priority order is then presented to the Defence Board by the Chief of the Defence Staff—a presentation that has become extremely effective, because it carries with it the authority of all three services and the joint forces commander.

The Defence Infrastructure Organisation has been stood up to rationalise the Ministry of Defence estate and reduce costs by 25%. Defence Business Services has been created to unify human resources and other back-office functions across the Department. The reform of the procurement process has begun with the appointment of—you guessed it, Mr Deputy Speaker—Bernard Gray, who has now had four name checks, I think, so far in the debate, as chief of defence matériel, and the establishment of the major projects review board to hold those responsible for failing projects firmly to account.

This year will see the transformation accelerate, with an evolution towards a leaner, more strategic head office; the introduction of a stronger financial and performance management regime across the whole Department; the service chiefs being empowered to run their individual services and their delegated services budgets; the new joint forces command being stood up on 1 April; and the start of the reform of the MOD’s defence equipment and support business on the basis of a new matériel strategy.

The next few years will also see the beginning of considerable change on the ground as the rebasing programme set out in July last year is taken forward and the Army begins its return from Germany, as well as its withdrawal from Afghanistan and its internal restructuring to deliver five multi-role brigades. I know those last changes, in particular, are of great interest to individual Members. The House will understand that many of the changes are interdependent and complex, but I can give a commitment that I will make further announcements on the details of individual elements of the transforming defence programme as and when it is appropriate to do so.

[Sir Menzies Campbell (North East Fife) (LD)]

Will my right hon. Friend give way?

[Mr Hammond]

I thought that might provoke my right hon. and learned Friend.

[Sir Menzies Campbell]

First, I should apologise for being unable to be present at the beginning of the debate due to other responsibilities.

My right hon. Friend is right to say that the basing decisions have caused a great deal of disappointment. In the case of my constituency, the closure of RAF Leuchars, which has provided nearly 100 years of service in aerial warfare, has been particularly difficult to accept. Part of the argument in favour of that closure was that there would be specific deployments of units of the Army to occupy the base. So far, very little detail has been made available. May I encourage my right hon. Friend to ensure that the announcements he has just foreshadowed will be made as soon as possible?

[Mr Hammond]

I can reassure my right hon. and learned Friend on that point. RAF Leuchars is not so much closing as transforming its role to become the home of one of the five multi-role combat brigades after the rebasing of the Army back to the UK.

The purpose of all the changes is to increase the investment we can make in service people and their equipment and training, to increase investment in the front line by making the back office more efficient and more accountable, and to deliver value for money in defence. I know that change is unsettling and that the threat of change and the uncertainty it brings can sap morale, which my hon. Friend the Member for Colchester (Sir Bob Russell) mentioned. I will make every effort to ensure that the people who are directly affected by the proposals are kept fully informed as they progress and that we get the changes made as quickly as humanly possible.

[Mr Gray]

Will my right hon. Friend give way before he moves on?

[Mr Hammond]

I will not give way to my hon. Friend a second time, as I am conscious that a large number people wish to participate in the debate.

People remain the greatest asset of defence and, despite the tough decisions that must be taken, we will do all we can to protect them. This Government understand our duty to the country and to our armed forces. We have made the tough choices necessary to put them on a sustainable footing for the defence of national security and of the United Kingdom’s interests around the world. We know that making those changes will not to be easy, but I have no doubt that the British armed forces that will emerge will be formidable, flexible and adaptable, supported by the fourth largest defence budget in the world, meeting our NATO responsibilities and equipped with some of the best and most advanced technology on earth.

To get there, we need not just the series of structural and organisational changes I have set out, but a cultural shift in the way the organisation thinks and works. We need a shift in military doctrine to deliver the defence effect we will need, using the capabilities we will have; a shift in civilian culture to one of discipline, individual accountability and delegated decision making; and a shift to a leaner, fitter, more empowered and more empowering organisation. This is a programme of renewal and change of a scope and on a scale greater than anything else being delivered across the public sector. It is a blueprint for a sustainable future for the UK’s armed forces as one of the world’s most capable fighting machines. That is what Britain needs and what our armed forces deserve, and as we move forward to deliver it we will never forget that at the heart of this organisation are the servicemen and women who are prepared to put their lives on the line for us day in, day out. We owe it to them to make sure that the transformation we have embarked upon delivers its full promise.

--- Later in debate ---

[Mr Murphy]

I have learned from experience that it would never be wise to misrepresent the words of the shadow Chancellor, and I dare say the hon. Gentleman is doing just that. We have been pretty clear; we cannot commit to reverse specific cuts that the Government have made. Similarly, before the 1997 election we said we would stick to the size of the state for the first two years of a Labour Government. It is important to be clear: before that election, we committed not to reverse individual spending cuts.

On defence reform, we know that we must meet the ambitions for our forces that we share across the Chamber, and which the Secretary of State referred to at the end of his comments. Reform is more important than ever before and when the Government make the right choices, they will have our backing. I listened carefully to the hon. Member for Canterbury (Mr Brazier), who spoke with real passion about an important issue that can often be quite dry. Much of the restructuring of the MOD announced in the Levene report was as welcome on the Opposition Benches as it was, in the majority of cases, on the Government Benches, in particular, greater financial powers for service chiefs. Some of the rebalancing of the equipment programme, notably cutting tank regiments, was necessary and has our support.

Unfortunately, that is not the case for every decision taken in the Government’s controversial and much criticised defence review, which has set our country’s defence policy on an uncertain path. However much some try to depict the process as a success, the evidence to the contrary is striking. The strategic defence and security review was immediately reviewed in a three-month study that announced thousands of further redundancies in our forces and the civil service. There are new unfunded liabilities on the balance sheet and further cuts to the equipment programme appear imminent. The conflict in Libya saw military equipment planned for the scrapyard recalled. The UK has been left with serious capability shortfalls for a decade, most notably the carrier strike capability gap. Military experts have repeatedly been open in their criticisms, and all in all it is a cuts package still in search of a defence strategy and there should be a rethink.

On forces welfare, I welcome much of what the Secretary of State has said in the announcements that he has made in advancement of forces welfare, but last week saw 400 Gurkhas being made redundant—the second painful cut they have had to endure in just a few months. The whole House will recall that the Prime Minister championed those remarkable soldiers in opposition, and many will agree with the Defence Committee’s statement that the level of compulsory redundancies among those in uniform is “grotesque.” That comes alongside cuts to front-line allowances, and permanent changes to pensions that will disproportionately affect members of the armed forces and their dependants, who rely on their pensions at an earlier stage in life than almost anyone else.

[Mr Philip Hammond]

rose—

[Mr Murphy]

I will happily give way, because I anticipate that the right hon. Gentleman’s fidgeting—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. One standing up, one sitting down, not two standing at once.

[Mr Hammond]

I am sorry, Mr Deputy Speaker. The right hon. Gentleman says he is giving way, then stays standing up for another three sentences. I am confused. He says the redundancies in the armed forces are grotesque, but he says he will not reverse the spending cuts that the Government have announced. Which is it? Is he going to reverse the cuts or is he going to accept the redundancies?

[Mr Murphy]

As the right hon. Gentleman knows, I am echoing the assessment and the assertion of the all-party Select Committee, and now that the right hon. Gentleman and his friends have sacked those soldiers, we cannot re-employ them. That is very clear indeed.

[Mr Hammond]

The right hon. Gentleman is not going to wriggle out by putting it in an historical context. A tranche of military redundancy is going on right now, and regrettably there will have to be further tranches. Would he scrap them and, if so, where would he get the money from?

[Mr Murphy]

It is ironic and peculiar that the current Secretary of State is seeking a commitment from the official Opposition to reverse cuts that he has not even yet announced. It is a ludicrous way to conduct politics and economics.

This cut comes alongside cuts to front-line allowances, and permanent changes to pensions, which will detrimentally affect those who require to take their pensions earlier in life. A corporal who has lost both legs in a bomb blast in Afghanistan will miss out on £500,000 in pension and benefit-related pensions. War widows will also lose out enormously. A 34-year-old wife of a staff sergeant killed in Afghanistan would be almost £750,000 worse off throughout her life.

Ministers blame deficit reduction but the argument does not add up. These changes are permanent, so the impact will be felt long after the deficit has been paid down and the economy has returned to growth.

I believe it is uncomfortable for us all that Sir Michael Moore, the chairman of the Forces Pension Society, has been moved to say:

“I have never seen a Government erode the morale of the Armed Forces so quickly”.

What has been the Prime Minister’s response? It has been a Cabinet Sub-Committee of his Ministers. To those in the front line, that will be little consolation. Indeed, given some of the decisions that have been taken, they are likely to want fewer, not more ministerial meetings. As I have previously said, I think there is a case for fewer Ministers in the Ministry of Defence in and of itself.

As the Secretary of State has rightly said, UK armed forces are a “force for good” across the globe, bringing peace to the Balkans, promoting stability in Sierra Leone, building capacity across Africa, supporting the actions around Libya, the normalisation of Northern Ireland and counter-terrorism at home and overseas, including in Iraq and Afghanistan. We want our forces to continue to play such a world-leading role, but their ability to do so is being challenged by the decisions of the Government.

Armed Forces Pay Review Body - Reappointments

Lord Hammond of Runnymede Excerpts

Thursday 19th January 2012 Written Statements

[The Secretary of State for Defence (Mr Philip Hammond)]

I am pleased to announce that I have reappointed Ms Mary Carter and Mr John Steele as members of the Armed Forces Pay Review Body for a second three-year term; and the Very Reverend Dr Graham Forbes as a member of the Armed Forces Pay Review Body for a second two-year term. The reappointments, which commence in March 2012, have been conducted in accordance with the Office of the Commissioner for Public Appointments’ guidance on appointments to public bodies.