Defence Matériel Strategy

Lord Hammond of Runnymede Excerpts

Thursday 25th April 2013 Written Statements

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

For decades, there has been an acknowledgement that defence acquisition in this country can, and should, be done better. Despite almost countless reviews and reorganisations, successive Governments have failed to embed the radical changes necessary to provide our armed forces with the equipment they need in the most effective and efficient way possible.

In 2011, my predecessor established the materiel strategy programme to consider what changes would be required to the defence equipment and support organisation (DE&S) to resolve this problem.

In July last year, I announced to the House that, after a rigorous examination of all the possible options open to us, our preferred model for the future operation of DE&S was a Government-owned, contractor-operated entity, a “GOCO”. Since then, we have conducted more analysis that has confirmed our thinking in this regard, and today I am pleased to be able to announce the next steps in taking this work forward.

This final assessment phase, which we expect to last approximately 12 months, will allow us to make a true comparison between two options. These are a public sector comparator which is known as “DE&S +”; and a GOCO, implemented in two stages.

I would like to put on record my appreciation of the excellent staff at DE&S and the work they do. This programme is about giving them access to the necessary skills, processes and resources to enable them to do their job better, ensuring that the armed forces are provided with battle-winning equipment on time and to budget.

During this assessment phase, we will work with HMT and the Cabinet Office on the “DE&S+” option to explore the extent of change that could be delivered while keeping the organisation fully within the boundaries of the public sector.

In parallel, a commercial competition will be launched that will enable us to determine with potential private partners how a GOCO would work in practice, and what the costs and benefits would be. By the end of the assessment phase, we would expect to have proposals in a form capable of being contracted, if we decide to proceed with the GOCO model.

We have made no secret of our expectation that the GOCO option is likely to prove better value for money, but we need to test this assumption with the market, to see what can be delivered and at what cost. No decisions have yet been made. At the end of this 12 month assessment phase we will have a comprehensive set of qualitative and quantitative data for both possible operating models which will enable us critically to evaluate the two options and make a final decision about the future of DE&S.

I expect to publish a White Paper later in the spring setting out further details of our analysis of the problems in defence acquisition, of the options for potential solutions and the reasoning behind our focus on the GOCO as the preferred solution.

Oral Answers to Questions

Lord Hammond of Runnymede Excerpts

Monday 15th April 2013 Commons Chamber

[Mr Philip Hollobone (Kettering) (Con)]

8. What assessment he has made of the ability of North Korea to deliver a ballistic nuclear warhead and the extent to which such technology is being shared with Iran.

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

It is clear that North Korea is undertaking programmes to develop nuclear weapons and a range of missile systems. It has successfully flight-tested ballistic missiles capable of reaching South Korea, Japan and US bases in the region. It has paraded a long-range missile with a claimed range of 12,000 km, which is highly likely to be intended to be nuclear-armed. Those developments are in breach of international law and threaten the stability of the region.

As for links with Iran, North Korea is known to have sold ballistic missile technology to Iran. Any sharing of nuclear technologies would be a matter of grave concern and would breach UN sanctions.

[Mr Hollobone]

The attempted development of nuclear weapons by North Korea and Iran surely underlines the importance of maintaining our own independent nuclear deterrent, but does my right hon. Friend agree that perhaps the greatest risk to world peace is a miscalculation or mistake on behalf of either Iran or North Korea at this time when tensions are rising?

[Mr Hammond]

I completely agree that there are huge risks at a time of heightened tension and a huge potential for miscalculation, which is why I welcome the initiative in which the United States is engaged to try to calm tensions around the Korean peninsula. The developments in Korea, and indeed Iran, show us primarily that the world is a very dangerous and unpredictable place, and that a credible nuclear deterrent is the ultimate protection against the threat of nuclear aggression or blackmail.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

What assessment has the Secretary of State made of the time frame in which the North Koreans will have the capability to strike mainland Europe with a nuclear missile?

[Mr Hammond]

It is impossible for us to make with any accuracy a prediction of the time scale involved. As I said, the North Koreans have tested shorter-range ballistic missiles and paraded a ballistic missile with sufficient range to reach Europe and the continental United States. We can only assume—I would be prepared to bet my bottom dollar on it—that they are seeking to integrate their nuclear technology with that ballistic missile technology.

[Mr Julian Brazier (Canterbury) (Con)]

I welcome my right hon. Friend’s robust earlier reply, but does he agree that the links to which he and my hon. Friend the Member for Kettering (Mr Hollobone) referred—not only with Iran but, to a lesser extent, with other potentially extreme regimes—emphasise once more that, in a world with huge uncertainty, our nuclear deterrent is critical?

[Mr Hammond]

I agree with my hon. Friend, and I would go further and say this: the life expectancy of the replacement ballistic missile submarines will be about 35 to 40 years, and it would be a very brave man who would claim now that he could see, 40 years ahead from the 2020s, that there will be no need for that capability.

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

It is in all our interests that the situation in North Korea is resolved not only peacefully but meaningfully so as the US deploys military assets to the Korean peninsula, what discussions has the Secretary of State had with his US counterparts about the provision of any UK logistical support? Should the US move any military assets out of Afghanistan to that region, has he confirmed to the US that the UK would be willing to fill any of the gaps created by that redeployment?

[Mr Hammond]

I am grateful to the right hon. Gentleman for his question. There have been no discussions with and no requests from the US, as far as I am aware—certainly at ministerial level—regarding any form of logistical support in relation to the tensions on the Korean peninsula. Again, as far as I am aware, there is no proposal by the US to move any assets from the Afghanistan theatre in response to this crisis.

[Diana Johnson (Kingston upon Hull North) (Lab)]

10. What recent progress he has made on balancing the defence budget.

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

17. What recent progress he has made on balancing the defence budget.

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

I announced to the House last May that we had eliminated the black hole in the finances of the Ministry of Defence that we inherited from the Labour party, and had brought the Defence budget into balance. Since then, on the one hand, we have been required to make further budget reductions in 2013-14 and 2014-15 of £1.2 billion in total as a result of the Chancellor’s announcements at autumn statement 2012 and Budget 2013; on the other hand, we have made further savings through efficiency and renegotiation of contracts and have been granted exceptional levels of end-year flexibility by the Treasury to carry forward 100% of our 2012-13 underspend, including unneeded contingency provisions, into 2013-14 and 2014-15. In consequence, we are confident that we can absorb the budget reductions announced without any significant impact on core defence output in those years.

[Diana Johnson]

Ministers frequently say that they have a defence review and then budget according to the security needs of the country, so I am a little confused as to why No. 10 and the Treasury say that there will be defence cuts post 2015. Is it because the Government’s priority is Treasury accountants, rather than the security needs of this country?

[Mr Hammond]

The Government have announced that there will be a spending review—spending review ’13 —which will set the budgets for non-ring-fenced Departments, including Defence, for 2015-16. There has been an announcement confirming that the equipment programme will be protected in the defence budget, with a real-terms increase of 1% per annum between 2015-16 and 2020-21.

[Mrs Glindon]

Ministers have pledged an annual real-terms 1% increase in defence equipment spending post 2015, but in what year, under current plans, does the Secretary of State forecast the whole defence budget rising in real terms?

[Mr Hammond]

I am not going to pre-empt the outcome of SR 13; nor am I going to conduct the spending review in public. My Department is engaged in analysis with the Treasury and the Cabinet Office, in search of genuine efficiency savings. Where we can find such savings, for example in the equipment support programme, the Ministry of Defence will willingly do its bit to contribute to fiscal consolidation. I will, as you would expect, Mr Speaker, argue vigorously for the resources that Defence needs to deliver Future Force 2020 in accordance with the strategic defence and security review 2010.

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

A few weeks ago, the Prime Minister told the House that he continued to hold the “strong view” that the overall defence budget should rise in real terms from 2015 onwards. When will that prime ministerial wish become Government policy?

[Mr Hammond]

I can confidently predict that the Prime Minister will be involved and will be a key player in the end game of the SR 13 discussion.

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

Does my right hon. Friend realise that he struck a chord with many in the House of Commons when he recently expressed reservations about the possibility of further cuts in the defence budget? Does he agree with me that it is not the immediate availability of capability that is important but the resilience that our armed forces possess in the event that the United Kingdom found itself engaged in a protracted engagement? Is he satisfied that all three services possess that resilience?

[Mr Hammond]

My right hon. and learned Friend is of course correct: it is resilience, both in the sense of an ability to sustain an enduring operation, and in the sense of an ability to regenerate capability and force levels should the global security situation change, which is crucial. One can always have more resilience, and one would always like more reserve, but I am confident that the stance or posture that we set out in SDSR 2010 will enable us to deliver appropriate levels of national security in 2020.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Does the Secretary of State realise that if he wants a defence manufacturing sector to remain in our country—I have David Brown Gear Systems, an important defence contractor, in my constituency—and if he wants it to survive and thrive as a sector, it is absolutely vital that we have procurement over a long period to enable the necessary investment? Is he aware that there is uncertainty in the industry about these defence cuts?

[Mr Hammond]

Of course, cuts in defence budgets, not only in the UK but in the United States and, in fact, in nearly all developed countries, have presented huge challenges to defence industries. At the same time, many of their traditional export customers have developed their own defence manufacturing and even design and development capabilities. We are trying to work with the defence industry to give it greater visibility of our forward intentions, and to work with it to design greater export ability into its projects.

[Peter Luff (Mid Worcestershire) (Con)]

I congratulate my right hon. Friend unreservedly on his success in the herculean task of balancing the defence budget, but does he agree that if we are to keep that budget balanced, one of the things that has to change is the status of Defence Equipment and Support? Can he share with the House any clear indication of when he will announce his intentions in respect of that organisation?

[Mr Hammond]

My hon. Friend is right. [Interruption.] The right hon. Member for East Renfrewshire (Mr Murphy) correctly guesses that the announcement will be made shortly; “in the spring” and “before the summer recess” also spring to mind. My hon. Friend is right that if we are to deal effectively, and in a way that protects the best interests of the taxpayer, with large corporate entities which are able to scour the world for the top talent, we must be able to match them man for man across the negotiating table.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

11. What recent discussions he has had with representatives of the renewables industry regarding onshore wind turbine planning applications; and if he will make a statement.

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[Graham Evans (Weaver Vale) (Con)]

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

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

My priority remains the success of operations in Afghanistan. Beyond that, my priorities are to deliver the transformation of the MOD, maintain budgets in balance and deliver equipment programmes so that our armed forces can be confident of being properly equipped and trained. We have set out plans to restructure the Army, to re-base it from Germany, to expand the reserves and integrate them with regular forces, and to restructure the Defence Infrastructure Organisation and Defence Equipment and Support within a slimmed-down MOD that is focused on providing support to the armed forces.

[Graham Evans]

Has my right hon. Friend seen the recommendation of the House of Lords Economic Affairs Committee’s report on the implications of Scottish separation that the Government should provide assurance that plans are in place to maintain the UK’s nuclear deterrent in the event of the Scottish people voting for separation? Does he agree with the recommendation?

[Mr Hammond]

I am grateful to my hon. Friend and disappointed that the sole representative of Scottish separatism in the Chamber today had disappeared before we reached this point in proceedings. I have indeed seen the recommendations of the House of Lords report. As my hon. Friend will know, the Government’s position is clear: Scotland benefits from being part of the United Kingdom and the United Kingdom benefits from having Scotland in it. We are confident that the Scottish people will agree. However, in the event that they voted to leave the United Kingdom, the referendum, rather than being the point at which Scotland would leave the Union, would mark the beginning of a lengthy and extremely complex set of negotiations between the Scottish and UK Governments on the terms of independence. If an independent Scotland wanted to change the arrangements for the UK’s nuclear deterrent, the considerable costs, complexity and time scale involved in delivering alternative arrangements would inevitably be a major feature of the negotiations. It is therefore incorrect to suggest the need for an immediately deliverable contingency plan for the deterrent. However, the House will be aware that the MOD plans for a huge range of contingencies. For reasons of national security, we do not comment publicly on plans relating to the nuclear deterrent.

[Mr Kevan Jones (North Durham) (Lab)]

The MOD underspent its budget by £3 billion last year: a total of £1.6 billion is being carried forward, and there is now a shortfall of £1.4 billion up to 2015. Further to the question asked earlier by my hon. Friend the Member for Middlesbrough South and East Cleveland (Tom Blenkinsop), can the Secretary of State tell the House why the MOD is not using some of that money to backdate the pay increase from May to April announced in the Budget?

[Mr Hammond]

A significant proportion of the underspend in 2012-13 is, in fact, the result of delayed spending on equipment programmes and will be needed to be spent in 2013-14 and 2014-15. As the hon. Gentleman will also know, part of the underspend is being used to meet the additional reductions in the budget announced by the Chancellor in the autumn statement and the Budget, which is why we are able to meet those requirements without cutting into the delivery of our core outputs in 2013-14 and 2014-15. To amplify the point about the pay settlement that is effective from 1 May, I will say this: the practical reality is that the MOD’s pay system is quite fragile, and the possibility of making a retrospective change was considered significantly high-risk. It would introduce a significant risk of a catastrophic breakdown in the pay system. We therefore—

[Mr Speaker]

Order. We have a lot of questions to get through and I intend to get through them. Frankly, the answer to the first supplementary question was an abuse of the procedure at topical questions. Answers should be brief. [Interruption.] The Secretary of State can look at me quizzically, but I am telling him that the answer was simply too long for me, too long for the House and it delayed us unnecessarily. It must not happen again.

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[Dan Jarvis (Barnsley Central) (Lab)]

T9. The Secretary of State may have seen a recent interview, given by the Foreign Secretary to The Times, in which the Foreign Secretary said that what we increasingly need is more capability in surveillance, specialist capabilities and cyber skills. May I ask the Secretary of State whether his Department is cutting, or has plans to cut, any of those capabilities of which the Foreign Secretary says we need more?

[Mr Philip Hammond]

No. We are very much aware of all those needs and I endorse the comments that my right hon. Friend made. He was probably making an oblique reference to press speculation about special forces. I can confirm that front-line special forces numbers will remain at current levels and will not be cut below the 2010 level.

[Henry Smith (Crawley) (Con)]

T6. I very much welcome the increase in UK defence exports, which employ hundreds of thousands of people around the country, many of whom are in my constituency. Will my hon. Friend update the House on progress on exports of the Typhoon fighter?

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[Mr Crispin Blunt (Reigate) (Con)]

One of the reasons the previous Government were able to run up a £38 billion gap between their budget and their forecast expenditure was the doing away with the annual defence review White Papers in 1997. What measures does my right hon. Friend have in place to make sure that the forthcoming defence budget stays honest in the light of his decade-long promise on defence expenditure?

[Mr Philip Hammond]

I am grateful to my hon. Friend. We have implemented a number of measures internally, including a very tight control on new commitments, constant monitoring of budgets, and attention to this issue at the highest levels of the Department, including ministerial oversight. I am very confident that the defence budget, having been got into balance, will be kept in balance, however difficult the decisions that have to be made to ensure that.

[Bob Stewart (Beckenham) (Con)]

Does my right hon. Friend agree that the only guaranteed nuclear deterrent is one that is carried by a submarine, launched by a ballistic missile, and on duty 24 hours a day, every day of the year?

[Mr Hammond]

There is no doubt in my mind that the most cost-effective way of delivering a credible and effective nuclear deterrent is through continuous, at sea, submarine-based deterrence.

[Mr Speaker]

Last, but not least, I call Penny Mordaunt.

Armed Forces Pay Review Body 2013 Report

Lord Hammond of Runnymede Excerpts

Thursday 14th March 2013 Written Statements

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

The 2013 report of the Armed Forces Pay Review Body (AFPRB) has now been published. I wish to express my thanks to the chairman and members of the review body for their report.

In line with the Government’s 2011 autumn statement, which announced that public sector pay awards will average 1% for the two years following the public sector pay freeze, the AFPRB has recommended an increase of 1% to base military salaries for 2013-14. In addition, the AFPRB has recommended an increase to X-factor of 0.5% and a 1% increase in specialist pay and compensatory allowances. The AFPRB has also recommended an increase to accommodation charges, but a reduction to food charges, together with a number of targeted measures, including a new commitment bonus for certain categories of personnel joining the Territorial Army.

The AFPRB’s recommendations are to be accepted in full, except for the recommendation to increase X-factor, which would result in costs for which the Department has not currently budgeted. This recommendation is therefore under consideration as part of a wider review of departmental expenditure and I will inform the House of the result in due course. All other recommendations will become effective from 1 April 2013, except where the AFPRB report indicates otherwise.

Copies of the Armed Forces Pay Review Body report are available in the Vote Office.

Army Basing Plan

Lord Hammond of Runnymede Excerpts

Tuesday 5th March 2013 Commons Chamber

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

With permission, Mr Speaker, I would like to make a statement on the future basing of the British Army. To assist right hon. and hon. Members in understanding the detail of the changes I shall announce and the effects on their constituencies, I have placed in the Libraries of both Houses, and on the Ministry of Defence website, documents setting them out. I understand that copies of the documents will, with your permission, Mr Speaker, be distributed in the Chamber during the course of this statement.

In 2010, we set out in the strategic defence and security review the configuration of forces that the UK would require to meet the future threats, and we committed to have completed the return of UK troops from Germany by 2020. Last summer, I announced to the House the structure of the Regular Army component of Future Force 2020. Today, I can announce the future pattern of basing of the Regular Army in the UK, so that our servicemen and women, and their families and the communities that host Army units, have clarity about where they will be based in the future and when moves are likely to occur.

As the House will recall, in July 2011 the then Defence Secretary set out our initial plans for the future of the MOD estate, on which we will accommodate, train and prepare our armed forces. Those plans have been significantly refined over the intervening 18 months and reflect the fully developed military advice on the optimum affordable basing lay-down to accommodate the Army in the future strategy. This announcement honours our commitment to bring all our troops home from Germany by 2020, with all but the 4,400 troops of 20 Brigade home by Christmas 2016. It supports the Army 2020 structure, the integrated reserves training model and the generation of the Army’s future military capability. It also delivers a £1.8 billion investment in the UK economy in infrastructure and accommodation, and annual savings of £240 million in reduced costs and in improved efficiency of training and maintenance operations, on top of the £100 million-plus annual saving generated by the previously announced moves from Germany.

The return of the British Army from Germany marks the end of an era and I want to put on record the huge debt of gratitude we owe to the German Government and the German people for the support, both moral and material, they have shown our armed forces over more than six decades.

In fact, that return has already begun. In 2010, 20,000 British service personnel were based in Germany, together with their dependants and civilian staff. Already that number of service personnel has been reduced to fewer than 16,000, with significant force elements having already relocated, such as Headquarters Allied Rapid Reaction Corps, which has moved to Innsworth, Gloucestershire. Planning for completion of the return is well advanced. We are on track to reduce our presence in Germany by more than 70% by 2015 against our SDSR target of 50%. The long-term retention of a small training presence in Germany, utilising NATO training facilities, is under active consideration, but we will be closing all major unit locations.

This is not just about rebasing the Army from Germany. It is about providing a basing plan for Army 2020 in the UK that will allow the Army to generate its military capability in the optimal way. As the plan has developed, two key principles have emerged to inform it. First, the armoured infantry brigades of the reaction force should coalesce around a single location. We have concluded that Salisbury plain training area is the only place in the country where we have the capability to carry out the complex and demanding training exercises that they need to conduct. Having all three brigades located in close proximity around the plain will enable them to train and fight more effectively and will present significant opportunities for efficiency in equipment support and people management. Secondly, the Army should retain a UK-wide footprint, maintaining the vital link to civil society, fostering closer links between reserve units and their partnered regular units and supporting nationwide recruitment and engagement.

Guided by those two principles, the Army has identified the lay-down that represents the best value for money in the utilisation of existing estate and the minimisation of running costs. The focus will be on increasing consolidation around seven centres: at Salisbury plain training area, where we will invest over £800 million; in the north-east of England, centred on Catterick; at Aldershot; around Edinburgh and Leuchars; at Colchester and Swanton Morley in the east of England; in the west midlands around Stafford and Donnington; and in the east midlands, focused on Cottesmore and North Luffenham, where £180 million will be invested. We will do all that while maintaining a regional presence in other parts of the country.

Consolidating around the seven centres will significantly reduce the need for moves, ending the culture of routine UK rotation and giving Army personnel and their families greater certainty about where they will live and work with real benefits in terms of increased stability, access to long-term spousal employment opportunities, continuity in schooling for Army children and the chance to set down roots and access the benefits of home ownership.

The announcement will maintain the broad pattern of Army activity in Scotland, Wales and Northern Ireland. With 45 Commando Royal Marines remaining in Arbroath for the foreseeable future, the measures announced today will see an increase of about 600-plus in total regular armed forces numbers north of the border against the July 2011 baseline, even as the armed forces reduce in size by about 17% overall. In both Wales and Northern Ireland, overall numbers will reduce by approximately 400.

The announcement sets out our firm plans for the lay-down of the British Army, subject of course to gaining the necessary planning, environmental and other regulatory approvals. They are underpinned by a capital investment from the defence budget of £1.8 billion, including £1 billion of investment in new living accommodation to provide 7,800 single living spaces and 1,900 new and refurbished units of family accommodation. The investment will provide a welcome stimulus to the UK construction industry and, taken together with the significant purchasing power currently going into the German economy that will be diverted to the UK, will help to create jobs across the regions and nations of the UK.

The Ministry of Defence plays a major role in the Government’s public land release programme and will be looking to release additional land and surplus service family accommodation where it is no longer needed. Under the plan, the armed forces will be leaving a number of locations. The disposal plans will be subject to further detailed work and will also be subject to the completion of the plans for the reserve estate in due course. However, I can confirm that we plan to dispose of Howe barracks in Canterbury, Claro barracks in Ripon and parts of Copthorne barracks in Shrewsbury. In Scotland, we will be disposing of Craigiehall barracks, as well as elements of Redford barracks and Forthside barracks in Stirling. Kirknewton will not now be developed as an Army base but Dreghorn will remain as one.

The MOD also intends to close Cawdor barracks at Brawdy in Wales, which is no longer fit for purpose, with 14 Signal Regiment relocating to St Athan, not before 2018, as part of a regional consolidation of the defence presence on that site that will also allow commercial development and job creation by the Welsh Assembly Government, with whom we are working collaboratively, in support of the enterprise zone.

The local communities in each of those areas have been hugely supportive of the military presence over many years. The loss of historic ties will be much regretted and, on behalf of the Army, I want to thank those communities for their generous hosting.

As part of our continued scrutiny of the central London estate, we will be pursuing options to vacate Hyde Park barracks and re-provide for the Household Cavalry Mounted Regiment elsewhere within central London, allowing for disposal of that prime development site, provided that the regiment’s requirements can be met and it proves value for money to do so.

Those disposals, and other planned disposals, will bring substantial receipts which have already been factored into the MOD’s future budgets and will significantly reduce the operating costs of the MOD estate.

I have focused on the future basing of the regular Army but I am conscious that many right hon. and hon. Members will also be interested in the reserves and in our plans for reserve basing, as well as the future basing plans for the other services, the training estate and logistics operations. My right hon. Friend the Minister for the Armed Forces will be making announcements shortly concerning other routine changes elsewhere in the MOD estate across the UK and I will update the House before the summer recess on the future basing plans for the reserves.

This announcement represents a costed and funded plan to bring our Army back from Germany, deliver the basing lay-down for Army 2020 and provide the accommodation our troops deserve, fulfilling our commitments to consolidate the Army estate and providing certainty to Army personnel and their families about where they will be based in the future. It is a plan that is driven by the Army’s requirement to generate military capability in the most effective and efficient way as it reconfigures for contingent operations based almost entirely in the UK. It represents a significant step forward towards the achievement of Future Force 2020 and delivers substantial year-on-year savings to defence in the future and a significant boost to the UK economy, and to the construction industry in particular, right now. I commend the statement to the House.

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

I thank the Secretary of State for providing advance sight of his statement earlier today. While the strategic defence review did not survive its first contact with world events, the assumptions within it did not survive contact with the Secretary of State. The country remembers that the Government were elected on a promise of a bigger Army. The SDSR promised five multi-role brigades and cut 7,000 troops. Army 2020 is based on a cut of 20,000 troops and promises seven infantry brigades.

In that context, we welcome a steady, costed withdrawal of UK troops from Germany. Today’s announcement will impact on Army deployability, our ability to meet planning assumptions, service families’ livelihoods and the integration of service personnel with local communities. That is why I want to ask some detailed questions of the Secretary of State about how to make these measures successful.

On Germany, the right hon. Gentleman says the total cost of returning troops from Germany is £1.8 billion. Will he spell out specifically where this money has been found and say whether any cuts to the MOD non-equipment budget are being made as a result? Undisclosed underspends cannot be the gift that keeps on giving for the Secretary of State, and all those in the military who have recently lost their jobs will want to know that today’s announcement has not been funded at their expense. Will he say how much is allocated to each of the RAF bases being converted to make them fit for the Army, and for each of them, when the conversion will be completed? The public will also want specifics on how the £240 million savings will be achieved and in which year they will begin to accrue.

It is vital there is a positive impact on the local communities to which our forces and their dependants will be returning. How many new homes for soldiers and families will be ready by 2016? It is hard to see this being achieved in the time frame set out. Given that MOD figures show there are 7,000 service children currently being educated in Germany, will the Secretary of State say what will happen to those whose new homes will not be built in time? There will be an expectation that the Secretary of State can today guarantee that no one returning will be forced to take on expensive private rented accommodation because the specified new accommodation is not ready.

It is essential that local services can provide for our military families. Will the Secretary of State say what assessment he has made about the local impact of returning military families specifically in the areas surrounding the seven permanent bases referred to today, and what discussions he has had with his counterparts in the Department of Health and the Department for Education, as well as the devolved Administrations? With the grant to local government falling by a third over the current spending review period, which Department will meet the additional costs to local authorities?

Can the Secretary of State confirm that he has had the requisite discussions with German authorities about these plans? What will the cost be of redundancy of the civilian force in Germany? Although there is much less strategic need for our forces to be based in Germany, it can still play an important role in providing training facilities. How does he envisage this function being supplemented if it is no longer available there?

With reference to lay-down, there will be real disappointment at closures across the UK today, from Canterbury, Ripon and Shrewsbury to Brawdy, where historic bonds are being broken. The Secretary of State says that his disposal plans will bring in substantial receipts, which have already been factored into future MOD budgets. After the Government’s 4G debacle, he will forgive the public if they wait for further details before taking that assertion at face value.

The armed forces remain crucial to Scotland’s future but today the Government have reneged on their promise. Although there is positive news about the return of the Royal Scots Dragoon Guards and the Royal Marines staying in Arbroath, a previous pledge of thousands more troops to Scotland has become a plan for just hundreds. This is a real blow to Scotland and will not be forgotten.

UK defence planning assumptions rely on doubling our number of reservists by 2018. Despite this, there is uncertainty over employer engagement, workplace protections and missed recruitment targets. It is disappointing that today we heard little of where reserve units will train or of the fate of existing units. The Army 2020 plan on which today’s announcement is based remains in jeopardy while these issues are unresolved.

In conclusion, UK troops have been stationed in Germany for almost 70 years and we support their return home, but this will, as I know the Secretary of State would expect, be matched by detailed scrutiny. So I hope he will be able to outline further the implications of today’s announcement for personnel and their families, as well as for local communities, which will, I am sure, give our returning troops a warm and patriotic welcome upon their return.

[Mr Hammond]

I hope the document that has been distributed will answer some of the right hon. Gentleman’s questions, particularly about providing the certainty that personnel and their families will want in terms of where they are going and when they are going to go there. I note that his references at the beginning of his remarks about multi-role brigades and the subsequent evolution of the Army force to match the resources available made no reference whatever to the legacy that we inherited from the previous Government, which has been one of the key drivers in our efforts to deal with the challenges ahead.

Let me try to deal with some of the right hon. Gentleman’s perfectly legitimate questions. He asked me about the £1.8 billion capital spend. Essentially, he sought assurance that this money had not been found at the expense of the budget for employing our forces. It is, of course, a capital budget quite separate from the resource departmental expenditure limit budgets of the Department and it is largely a budget that was in the Defence Infrastructure Organisation’s capital spend programme, supplemented by some of the capital underspend from last year, which we have been allowed to carry forward.

[Mr Kevan Jones (North Durham) (Lab)]

It will be taken away from Army housing.

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[Mr Hammond]

I have just told the House that we are investing £1 billion in Army housing. That will be alongside the existing programme of refurbishment of Army housing, which will continue.

The right hon. Member for East Renfrewshire (Mr Murphy) asked me about the pattern of investment in RAF bases. There will be very substantial investment in both Leuchars and Cottesmore. I am happy to write to him with the precise estimated figures for both bases, but he will understand that this is subject to contractual negotiations as we develop the detailed plans for those individual bases.

The right hon. Gentleman asked when the £240 million annual savings start to accrue. They reach that full level by 2019 but they start to accrue immediately, within the next year, and they build up steadily to the 2019 figure. [Interruption.] The hon. Member for North Durham (Mr Jones) says they cannot. The savings start to accrue as soon as we start to close down infrastructure in Germany—[Interruption.] The hon. Gentleman has been in government. One would think he would understand the difference between a capital expenditure programme and the accrual of resource savings, which will begin as soon as we start drawing down infrastructure in Germany.

The right hon. Member for East Renfrewshire asked me quite legitimately about the phasing of the development of accommodation, the supporting local infrastructure and the timing of relocation. This, of course, has been a major driver of the programme that is set out in the document circulated. In most cases new accommodation will be provided before units relocate. In some cases, as he will see from the document, it will be necessary for a returning unit to locate temporarily in another facility while the ultimate destination is fully completed, with the infrastructure and the accommodation that it requires. He will notice as well that the most substantial move to the Salisbury plain—20th Armoured Brigade—is the last move to take place, in 2018-19. That reflects the fact that substantial infrastructure investment will be required—£800 million of MOD investment, together with investment by the Department for Communities and Local Government, the Department of Health and the Department for Education to provide the supporting local infrastructure.

The German authorities have been fully informed throughout the process. I spoke to my German counterpart yesterday. He expressed his regret at the decision but he is understanding of it. My right hon. Friend the Minister for the Armed Forces spoke this morning to the Minister-Presidents of the German Länder affected. The right hon. Gentleman asked about training in Germany. As I think I said, we are pursuing the option of taking up a very generous invitation by the German Government to continue using training estate in Germany to train with the Bundeswehr and other NATO allies. The current plan envisages about 100 personnel remaining in Germany as the core of a residual training presence.

Of course I accept that there will be disappointment in the towns and communities where there are to be base closures, but if we are to deliver the armed forces that this country needs within the budgets that are available to support them, we have to deliver that military capability efficiently, and isolated single bases do not allow us to do that. The lay-down that I have set out in these documents is the optimum value-for-money strategy that will allow the military to deliver the capability that we require.

In Scotland, it is indeed good news that the Royal Scots Dragoon Guards will go to Leuchars and that 45 Commando Royal Marines will remain at Arbroath. The right hon. Gentleman mentioned the reference to thousands of additional troops going to Scotland. That was when we were still talking of a 94,000-strong Army. The end result in dealing with the legacy that we inherited from the Labour party was an 82,000-strong Army, which is affordable and sustainable, and can be properly equipped and supported, unlike the forces that the previous Government fielded.

Finally, on the question of reserves, we will be publishing a White Paper shortly, and following that I will make a further statement to the House about the reserve estate.

[Dr Liam Fox (North Somerset) (Con)]

I congratulate my right hon. Friend on completing a difficult jigsaw puzzle that Labour was never able to manage, and ensuring that the Ministry of Defence spending is boosting economic activity in this country, not on the continent. Does he agree that the ability to spread this force footprint across the United Kingdom and the large sums involved, fatally undermines the case of the Scottish nationalists that Scotland would ever be better off trying to fund its own armed forces?

[Mr Hammond]

I do agree with my right hon. Friend, and we will no doubt hear in a moment from the representatives of the Scottish National party. I find their posturing on this slightly incredible when their agenda is about taking Scotland out of the United Kingdom, removing our Army, our Air Force, our Navy and our marines completely from Scottish soil.

[Jenny Chapman (Darlington) (Lab)]

My constituency of Darlington is very close to Catterick garrison and we are proud to help to accommodate and educate Army children in our town, but the right hon. Gentleman will understand that at times that can put pressure on local services. What specific discussions will he have with local authorities near the seven bases that he has referred to to try to make sure that these children are welcomed back from Germany in the way that we would want?

[Mr Hammond]

We have had discussions with colleagues from the Departments for Education and Communities and Local Government and the Department of Health, and we believe that on the time scales set out here, the additional infrastructure required, which is relatively modest with the exception of the Salisbury plain area that receives more than 4,000 additional troops, will be deliverable over the time scales set out in the document that I have circulated.

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

You know, Mr Speaker, that my interest in these matters is directly related to the fate of Royal Air Force Leuchars in my constituency. You may also be interested to know that I almost need not have attended the statement since full details are contained in this morning’s edition of the Dundee Courier, a daily newspaper circulating in my constituency.

Let us make no mistake and let us be in no doubt, the decision to transfer Typhoons from Leuchars to Lossiemouth is a political decision, and I do not repent of my view that to base air defence aircraft away from centres of population and away from sensitive installations, such as nuclear power stations, is both operationally and strategically inept. I hope that we never have cause to regret doing so.

I assure my right hon. Friend that the local community of Leuchars will go out of its way to establish a warm and co-operative relationship with the Army. But does he also understand that the considerable disappointment there is that the numbers announced today are significantly less than those that were promised before? When will the Army be fully deployed at Leuchars, and will there be any gap between the departure of the Air Force and the arrival of the Army? Today, will he give us, and in particular my constituents, his guarantee that the damaging uncertainty of the last 20 months is now at an end?

[Mr Speaker]

There are many questions there for the Secretary of State. If he thinks, in attending to them, that he can throw any light upon what appears on the face of the observation of the right hon. and learned Gentleman to be a leak of Government policy, I am sure we shall all be immensely obliged to him.

[Mr Hammond]

It does indeed appear to be a leak in the Dundee Courier; I have its front page here. It is an inaccurate leak: the headline refers to a tank regiment. Of course, the Royal Scots Dragoon Guards is not a tank regiment.

I assure my right hon. and learned Friend that there will be no gap in the drawdown between RAF personnel and the build-up of Army personnel at Leuchars. This will take place in stages throughout 2015. By the end of 2015, the Army will be fully in place and the RAF will have vacated it.

My right hon. and learned Friend will also be interested to know that the plan provides for the runway at Leuchars to be maintained as an operational runway with a contingent of about 50 RAF personnel remaining on the base. This will operate as a diversionary runway for the Typhoon squadrons at Lossiemouth. That does mean that the air show will go ahead this year and that the runway will be there in future to make flying from Leuchars possible.

[Hugh Bayley (York Central) (Lab)]

How many military and civilian personnel will move to York as a result of a welcome decision to move Headquarters 1st Division to York? How many will be lost as a result of the decision to move 15 Brigade to Catterick? Will the Secretary of State clarify whether he means York Outer or York Central? For instance, he says that 2 Signal Regiment is currently based in York Outer; in fact it is based at Imphal barracks in York Central. I would like clarification on those points.

[Mr Hammond]

There are some detailed questions there. I hope that the retention of Imphal barracks in York puts to rest a concern that I know there has been in the city. There will be a marginal increase in the numbers of Army personnel at Imphal as a result of this statement. If the hon. Gentleman will allow me, I will check the figures on the other bases he mentioned in surrounding constituencies and drop him a note later this afternoon.

[Mr James Gray (North Wiltshire) (Con)]

I very much welcome the extra stability that the announcement will make in the lives of service personnel and their families. The people of Wiltshire will very much welcome the extra 4,000 soldiers to come there and the resulting investment in the infrastructure. Will the Secretary of State take this opportunity to reconfirm that the tri-service technical training base, which is due to move into RAF Lyneham by 2015, will go ahead as planned?

[Mr Hammond]

I can assure my hon. Friend that it is going ahead as planned. It is under way now. As I said in my statement, my right hon. Friend the Minister for the Armed Forces will be making an announcement in due course about other moves on the technical training estate.

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

I join the right hon. and learned Member for North East Fife (Sir Menzies Campbell) in saying that the Royal Electrical and Mechanical Engineers and the Royal Scots Dragoons will get a warm Fife welcome when they arrive, but may I press the Secretary of State to say why the decision has been taken not to proceed with MOD Caledonia?

[Mr Hammond]

As I think the hon. Gentleman is aware, Caledonia will remain as a naval facility without any Army presence. The Army plan has been looked at from the bottom up by the Army. The considerations are particularly around patterns of training activity, so that units that need to train together are located together. Because we are severely capital constrained, we have had to look at how to make the best use of the existing estate infrastructure, which in some cases has meant not going ahead with proposals that would have involved significant new capital investment. But this is an Army-designed, military-led plan that will allow us to generate our military capability at the best value to the taxpayer.

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

The closing of Claro barracks in Ripon is an extremely sad day for the city, which since around 1914 has provided to British troops a tremendous support and morale boost at all times, whether they are at conflict or at home. I pay particular tribute to the cathedral in Ripon and to the city council, which has given freedom of the city to a large number of our troops. Will my right hon. Friend meet me in the coming weeks to discuss how we can make the most of the military site in Ripon economically, and to see whether there are areas of military presence that we can retain there?

[Mr Hammond]

I am very happy to meet my hon. Friend. I should reassure him that despite the closure of Claro barracks, the adjacent defence training estate site, Deverell barracks, and the associated training areas in Laver Banks and Ripon park will not be affected by this announcement.

On the disposal of the Claro barracks site, as with all the sites that are wholly or partially for disposal, the Defence Infrastructure Organisation will engage with local stakeholders and local planning authorities and endeavour to dispose of them in a way that maximises the receipt to defence, but also protects the interests of the local community and maximises the beneficial economic impact of development on those sites.

[Angus Robertson (Moray) (SNP)]

I thank the Secretary of State for advance sight of his statement, welcome the return of troops from Germany and pay tribute to them for their decades of service there and to the German communities that hosted them, but the statement marks the breaking of a raft of defence promises in relation to Scotland. Will he clarify that the UK Government are not returning 6,500 to 7,000 troops from Germany to Scotland, as promised, that they are not building new barracks at Kirknewton, as promised, that they are not opening a new training area, as promised, and that they are not delivering the Army personnel levels promised for Leuchars, but that they are closing the Sterling headquarters of 51st Infantry Brigade and HQ Scotland? The Ministry of Defence has acknowledged that over the past decade there has been a 28% cut in the number of defence personnel in Scotland, compared with an 11% cut across the UK as a whole. The Army return to Scotland was supposed to offset the loss of the RAF and increase the defence footprint, so will the Secretary of State confirm that across the services, and taking into account the RAF changes, there will in fact be fewer personnel, not more, and certainly fewer than the 15,000 planned for an independent Scotland?

[Mr Hammond]

We have already discussed the story in The Courier today, “Tank regiment rolls into Leuchars base”, and the story in The Scotsman, “Scotland to keep Royal Marines base at Arbroath”. One would think that the hon. Gentleman might have something positive to say about that. When my right hon. Friend the Member for North Somerset (Dr Fox) made his statement in July 2011, the hon. Gentleman, as he might remember, accused the Government of planning to remove the Royal Marines from Scotland completely and close Fort George, neither of which has happened. It is true that the decision has been taken not to develop Kirknewton, but the balancing factor is the retention of Dreghorn as an Army barracks. The hon. Gentleman’s assertion about personnel numbers in Scotland is incorrect. My right hon. Friend the Member for North Somerset made his statement on 18 July 2011, and I have checked the numbers against that baseline. The total number of armed forces personnel in Scotland will be just over 600 higher than the baseline. I have also made a little calculation of the proportion of our armed forces personnel who will be based in Scotland, compared with the proportion of the population of the United Kingdom in Scotland. By my calculation, 8.39% of the UK population is in Scotland and 8.65% of our armed forces will be in Scotland by the end of this programme.

[Penny Mordaunt (Portsmouth North) (Con)]

I welcome the certainty that the statement will give regular Army personnel and their families. I hope that the Secretary of State will further enhance his reputation as the champion of good return on investment for the defence budget by confirming that any new building will be good quality and built to provide comfortable homes for decades to come. Historically that has not always been the case.

[Mr Hammond]

Of course, new build and refurbished accommodation will be to the highest grade 1 standard of military accommodation. With respect to my hon. Friend, I suspect that part of our problem with accommodation is that some of it was originally built to last rather too long, so we are struggling to refurbish and patch up old buildings, some of which are around 100 or 150 years old. Building new building to modern standards is the way forward to provide the kind of accommodation that our troops deserve and that our covenant promises them.

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

This is indeed an historic announcement. The British troops and their families will be greatly missed by the German people. My understanding is that the original treaty required two years’ written notice of the intention to withdraw and a commitment to pay for any environmental clean-up. Has the Secretary of State given that written notice, and what calculation has he made of the environmental clean-up costs?

[Mr Hammond]

I cannot give the hon. Lady a definitive answer on the written notice, but my discussions with the German authorities make it clear that they have been aware of our intentions for many years. They are completely comfortable with what we are doing, although of course they regret the fact that we are leaving Germany. We will of course be responsible for remediation of the barrack sites being handed back to the German federal authorities and work is already ongoing with the German authorities on scoping for exactly what is required, which will be different according to the intended future use of the locations.

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

Shrewsbury, the county town of Shropshire, has a long and proud tradition of hosting the Army, so this news comes as a great disappointment to me and to the people of the town. Will the Secretary of State meet me and the leader of the town council, who represents Copthorne, to discuss how the site, which is in the centre of town, can be used to bring maximum prosperity to the people of Shrewsbury? Will he assure me that everything will be done to ensure that there will be provision for Territorial Army reservists at Copthorne barracks?

[Mr Hammond]

We expect to release part of the Copthorne site for disposal. The final details will be announced once we have completed the reserves basing review. It is possible that part of the site will be required for the Territorial Army’s reserve estate. As with all sites for disposal, the Defence Infrastructure Organisation will engage with local stakeholders. I will be happy to meet my hon. Friend and the leader of his local authority. It is in our interests, as well as those of the local communities, to ensure there is an appropriate future use for the bases that are closing in order to maximise local prosperity and jobs.

[Sarah Champion (Rotherham) (Lab)]

Will the Secretary of State clarify whether the move from Germany represents a shift in strategy for the UK’s international footprint? If so, what are the implications for the UK personnel based in Cyprus and Northern Ireland?

--- Later in debate ---

[Mr Hammond]

None whatsoever is the simple answer. The withdrawal of our forces from Germany represents the logical conclusion of the ending of the cold war some 20-odd years ago. Keeping a large standing force in Germany is expensive and no longer serves its original strategic purposes. As our Army becomes smaller, the diseconomies of scale of having two separate centres for armoured vehicle training, for example, and consequently two separate centres for armoured vehicle maintenance, become unsupportable. This is a logical final move following the conclusion of the cold war era.

[Mr Julian Brazier (Canterbury) (Con)]

The closing of Howe barracks is clearly a blow to the local community, as the 5th Battalion the Royal Regiment of Scotland made a huge contribution to the community, and indeed a number of its members have given life and limb. Nevertheless, the logic of my right hon. Friend’s announcement is clear. In looking to part 2 of his statement, which will be made before the summer recess, may I urge him to consider two things? First, it is very important that the TA is based where it has historically recruited and where it can recruit and that that is not distorted by pairing arrangements with regular units, important though they may be. Secondly, it is critical that we keep our training areas going, particularly the smaller ones, because otherwise we will find that the new model will become unviable.

[Mr Hammond]

First, today’s announcement says nothing about the training estate. If announcements about the training estate need to be made, my right hon. Friend the Minister for the Armed Forces will make them. I recognise the tension my hon. Friend outlines between the need to have reserve accommodation in the areas where we recruit and the need to enable joint training for regulars and reserves, which is at the heart of our new model for the reserve forces. I can assure him that resolving that tension is at the core of the work going on and will inform the reserve basing review, which I will announce to the House before the summer recess.

[Dr William McCrea (South Antrim) (DUP)]

Northern Ireland has a long history of providing our Army with a lot of recruits. Will the Secretary of State reconsider the reduction of approximately 400 in the overall number of armed personnel in Northern Ireland proposed in the announcement, and recognise Northern Ireland as a part of the consolidation process? Army personnel and their families have found Northern Ireland a great place in which to live and educate their children. We have a lot of capacity, and at a time of financial restraint it is surely wise to use that.

[Mr Hammond]

I am grateful to the hon. Gentleman for his comments. He will recognise that part of the reductions in the 2020 numbers for armed forces personnel in all four countries of the Union results from the civilianisation of the search and rescue service. When we talk about reductions of 400 personnel in Wales and Northern Ireland, we must recognise that a significant proportion of that number is represented by the transfer of search and rescue services to a civilian contractor.

[Sir Bob Russell (Colchester) (LD)]

Clearly, I welcome the inclusion of Colchester as one of the seven centres where the Army is to be consolidated. The Secretary of State refers to investing £1 billion in new living accommodation, but the refurbishment of the existing houses has simultaneously been halted. Will he lift that moratorium?

[Mr Hammond]

Some additional money has been provided by the Chancellor in, I think, the last Budget, and a refurbishment programme is continuing with that finance. The £1 billion is in addition to the baseline programme of Defence Infrastructure Organisation maintenance and upgrading, which has a two-year pause partly ameliorated by the Chancellor’s additional contribution. Those two programmes will run in parallel.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Will the Secretary of State confirm that of the 165 Army units listed in the basing review, only one will be located in Wales? How much of the £1.8 billion MOD relocation fund will be spent in Wales?

[Mr Hammond]

I do not think that is right; I am conferring with my right hon. Friend the Minister for the Armed Forces. I am happy to write to the hon. Gentleman to confirm to him, as set out in the document, exactly what the lay-down will be in Wales after the completion of this move.

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

May I welcome the Defence Secretary’s recent statement to the Treasury that it should stop basing its tanks on the MOD lawn? May I congratulate him on an entry in the basing plan that seems to suggest that Marchwood military port in New Forest East will continue as the military port for the Army for the indefinite future?

[Mr Hammond]

I would not want to encourage my hon. Friend to draw that conclusion. Marchwood military port is scheduled for disposal, and—this is not part of this announcement, of course—it may well still be used by the Army but under the ownership of a civilian contractor.

[Stewart Hosie (Dundee East) (SNP)]

The Secretary of State said that the consolidation of the Army bases in Scotland would be around Leuchars and Edinburgh. He also made the welcome announcement that 45 Commando would remain in Arbroath, presumably at RM Condor. He then went on to say that the decisions on the training estate would be announced by the Armed Forces Minister later. May I urge him to ensure that those decisions are taken logically, and gently remind him that the excellent base and range at Barry Buddon in my constituency sits between Leuchars and Condor and ought to remain a very valuable part of the training estate in future?

[Mr Hammond]

I welcome the hon. Gentleman’s contribution to this debate. I have to say it is a delight to be in a Parliament where Members are arguing for military establishments in their constituencies. Many of my colleagues in NATO and EU countries do not enjoy that same level of parliamentary and public support for the armed forces. I am grateful to all Members of the House for that.

[Mr Ben Wallace (Wyre and Preston North) (Con)]

I welcome my right hon. Friend’s announcement that once again, Fulwood barracks will be home to a regular unit as the site of 3 Medical Regiment. These new units will need not only housing and barracks but training areas. Is my right hon. Friend looking for further training areas on top of the existing military estate?

[Mr Hammond]

We do not expect, in overall terms, to be looking for additional training areas. Clearly, the Army and the armed forces are getting smaller, and one would expect us to be consolidating training rather than expanding it. I would therefore not encourage my hon. Friend to think in terms of expansion of training areas.

[Sammy Wilson (East Antrim) (DUP)]

I am sure the Minister appreciates that the countries representing the fringe of the United Kingdom will feel they have been somewhat abandoned in this announcement. May I ask him about the cost of all this? Given that, as a result of the legacy of Operation Banner in Northern Ireland, there has been substantial investment by the military, especially in family housing and so on, why has he turned his back on some of the investment that is already available in Northern Ireland and not decided to relocate some of the units at Palace barracks or Thiepval barracks?

[Mr Hammond]

The hon. Gentleman is right that there is some vacant accommodation at Thiepval, and the Army looked very carefully at the possibility of further location at Lisburn. However, the equation is complex. It is about not only utilising existing estate but the operational cost of having troops on that estate—the cost of getting them to the training areas where they need to operate. Overall, the value for money case points to the solution I have set out, even though that means that some vacant accommodation will remain at Thiepval.

[Mike Crockart (Edinburgh West) (LD)]

In July 2011 I described the plans announced for the Edinburgh estate as “historical vandalism”, so I welcome today’s partial retreat, while still being saddened by the continued closure of Craigiehall in my constituency. Will my right hon. Friend say more about the help to be given to the communities and individuals affected by closures, such as the 100 staff at Craigiehall? Will he now commit to giving proper answers to the 82 parliamentary questions I have asked over the past 20 months to try to see whether this new plan works any better than the last one?

[Mr Hammond]

I hope the hon. Gentleman is not suggesting that he has 82 unanswered parliamentary questions; if so, I would be extremely interested to hear about it. The closure of Craigiehall results in a reduction of 27 military personnel on the site but, as he rightly says, there will also be some civilians there. As of today, we will engage with the trade unions in the usual way to talk about how we manage the impact of these closures on civilian staff, and we will of course do everything we can to minimise the effects.

[John Glen (Salisbury) (Con)]

I warmly welcome the Secretary of State’s announcement of £800 million of investment in and around Salisbury plain, which will also be welcomed by my hon. Friend the Member for Devizes (Claire Perry). Will he set out the profile of the spending of that £800 million and assure my constituents and the people of south Wiltshire that there will be a significant dividend in extra civilian jobs over the coming years?

--- Later in debate ---

[Mr Hammond]

The expansion of the military facilities on and around Salisbury plain, and the additional military numbers to be based there, certainly implies an increase in civilian employment as a consequence. I cannot give my hon. Friend an exact profile of the investment in Salisbury at the moment, but I can tell him that the move of 20 Armoured Brigade will take place towards the back end of the programme. That reflects the fact that there is a very big investment programme to be completed. Partly for technical and planning reasons and partly for financing reasons, it will be somewhat slower to get under way than some of the smaller investments we are making elsewhere. It will therefore be towards the second half of the programme that he sees that investment going into the area.

[Mr Crispin Blunt (Reigate) (Con)]

My right hon. Friend will understand that if, like me, one was born in a British military hospital in Germany, lived there as a child, and then served there as an adult in the British Army of the Rhine, the importance of this statement, certainly in personal terms, can hardly be overestimated. Charting as it does the plan for ending the contribution of the British Army of the Rhine, it is a very profound thing that he has brought to the House today.

May I ask the Secretary of State two things? First, will he ensure that the arrangements made with the German towns that have played host to the British Army for so long are kept under close ministerial oversight and that proper compliments are paid to them? Secondly, and substantively, will he and my right hon. Friend the Minister for the Armed Forces make sure that the plans for the necessary, very substantial investment around the Salisbury area are executed to a scale and a standard that we will be able to look back on with pride in decades to come, rather than future Administrations having to put right a failure of investment over the next few years?

[Mr Hammond]

Let me deal with the last point first. I am clear that the accommodation we build and the technical facilities we construct must be of a high quality and fit for purpose. I do not, however, intend this £1.8 billion to form a cornucopia for architects.

On the question of Germany, my hon. Friend is absolutely right. We need to plan carefully how we end the relationship with the many German towns that have hosted the British Army. The Army in Germany is very much on the front foot on this. We are aware of the significant impact, particularly in the Bergen-Hohne area, which, by German standards, is relatively less well off. We are looking, where appropriate, at what can be left behind as a physical memorial to the British Army presence in Germany. A series of events will be organised with local communities, and Ministers and senior military personnel will expect to attend them and provide a fitting tribute to the support the German people have given us.

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

I welcome the Secretary of State’s statement. Will he say a little more about the training implications for British forces coming from Germany, with particular regard to his reference to potentially retaining training facilities in Germany? What sort of time scale does he have in mind for the establishment of training facilities?

--- Later in debate ---

[Mr Hammond]

It is not a question of us retaining training facilities. We definitely will not retain British-run training facilities. However, the Bundeswehr operates NATO training facilities in Germany and we have been offered the use of them. One of the challenges the Army high command faces as part of this process, with the end of our combat operations in Afghanistan, is how to provide a suitably stimulating environment for young recruits coming into the Army. It is clear to us that an element of overseas training has to be part of that equation. We have overseas training facilities in Kenya, Cyprus and Canada and, as I discovered last week, superb Arctic training facilities in Norway, but over the coming months we will consider whether to take up the offer to use the NATO facilities in Germany.

[Guy Opperman (Hexham) (Con)]

People in Northumberland will be delighted that our long campaign to retain Albemarle barracks has been successful, for which I thank the Secretary of State. We will welcome the 3rd Regiment Royal Horse Artillery as much as we have supported the 39th Regiment Royal Artillery. I visited Albemarle again only three weeks ago. Will the Secretary of State meet me again to ensure that the present troops have the broadband, local transport and mobile facilities they need and that future, post-2015 troops will have the facilities they should enjoy as well?

[Mr Hammond]

I am sure that my right hon. Friend the Minister for the Armed Forces, who has responsibility for such matters, will be very happy to meet my hon. Friend to talk about those issues.

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

Having served in Germany twice, I know that this is an important announcement. In welcoming the basing plan, I suggest to the Secretary of State that its success will be contingent in part on the ability of 30,000 royal reservists to plug the gap left by the loss of 20,000 regular troops. Given that some of us have concerns about the cost and recruitment assumptions underlying the reservist plan, is it the Secretary of State’s intention to publish or keep the House regularly updated on the costs of implementing it?

[Mr Hammond]

That is slightly off the beam of the regular Army basing announcement. It is certainly my intention, once the recruiting campaign for reserves gets under way this year, to publish routinely—I think quarterly would be most appropriate—the recruiting data for the reserves. My hon. Friend is right that success in delivering our reserves programme is a crucial part of the Army 2020 plan. I will reflect on his suggestion that the cost of the reserve programme should be published, although I am not so sure it will be that easy to identify and isolate it.

[George Freeman (Mid Norfolk) (Con)]

I warmly welcome the announcement and congratulate the Secretary of State on the quiet competence he and his team have shown in putting it together, which is in stark contrast to the disgraceful financial planning we inherited from the Labour party. I particularly welcome the announcement that Swanton Morley in my constituency will be the home of the Queen’s Dragoon Guards, whom we will welcome as we did the Light Dragoons, and one of the seven consolidated centres. For some strange reason, that did not appear in the written statement, so will the Secretary of State confirm that I have understood him correctly?

[Mr Hammond]

I can indeed confirm that the 1st Battalion the Queen’s Dragoon Guards will be going to Swanton Morley and that Swanton Morley, together with Colchester, will form one of the seven hubs.

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

I thank the Secretary of State for the certainty and security he has given to the St Athan site. Bringing the Royal Signals to St Athan is welcome news, because the community has been on something of a rollercoaster ride in recent years. I also pay tribute to the Armed Forces Minister for the interest he showed when he met community leaders last year and said he would do everything possible. How many armed forces personnel will bringing the Royal Signals to St Athan attract to the site, and how much capital investment is needed?

[Mr Hammond]

The investment at St Athan will be in excess of £50 million. I cannot give my hon. Friend a more precise figure because of commercial issues relating to negotiations and contracts. The moves I have announced today will bring some 560 additional personnel to the site, taking the total liability on it to about 1,250. I say to my hon. Friend, who has been an ardent campaigner on this issue, that the consolidation of 14 Signal Regiment on the St Athan site represents a very important step in resolving the site’s future. The work we have done with the Welsh Assembly Government sets out a very good route to securing the site in the future, both for military use and for civilian development

[Jeremy Lefroy (Stafford) (Con)]

I thank my right hon. Friend for his statement. The people of Stafford will warmly welcome the two additional Signals Regiments to be based at MOD Stafford from 2015. Will he assure me that the construction of housing and creation of school places can now go ahead without delay?

[Mr Hammond]

Yes, I can assure my hon. Friend that the necessary accommodation will be constructed in time for the planned redeployment to Stafford.

[Jason McCartney (Colne Valley) (Con)]

Having been brought up on RAF bases at home and abroad, including RAF Wildenrath and RAF Rheindahlen, I welcome the certainty that today’s statement brings for forces families. The 1st Battalion of my locally recruited regiment, the Yorkshire Regiment, will remain in Warminster, while the 2nd Battalion will relocate from Münster to Cyprus. Will my right hon. Friend confirm that there will be investment in married quarter and single living accommodation overseas in Cyprus as well as at home?

[Mr Hammond]

The single living and married quarter accommodation in Cyprus is of a very high quality. My hon. Friend may have been there and may know that substantial investment has been made recently in new single living accommodation blocks, so I am not sure that any further investment is planned to accommodate this rotational battalion at the Cyprus garrison.

[Richard Drax (South Dorset) (Con)]

May I suggest that the pressure on realistic training facilities overseas will increase as the demand for training in a smaller area in the United Kingdom also increases? Will the Secretary of State reassure me and Her Majesty’s armed forces that there will be no cutbacks on training, particularly overseas, including multi-arms training and live-fire training, so that our armed forces can be given the most realistic training possible in a suitable environment?

[Mr Hammond]

When billions of pounds are spent annually on equipment and manpower, we are conscious of the importance of ensuring that we hone that equipment and manpower by exercising and training it. It was unfortunate that the previous Government had to cut in-year operational activity in order to balance the books. I hope the measures we have taken and those I have announced today mean that we will never get into that position.

Votes A Excess Votes

Lord Hammond of Runnymede Excerpts

Tuesday 26th February 2013 Written Statements

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

The Ministry of Defence Votes A excess votes will be laid before the House on 26 February 2013 as HC 992. This declares an excess of personnel for years 2009-10, 2010-11 and 2011-12, and requests an increase in the Votes A limits for these years.

Oral Answers to Questions

Lord Hammond of Runnymede Excerpts

Monday 25th February 2013 Commons Chamber

[Derek Twigg (Halton) (Lab)]

15. What assessment he has made of the likely defence budget post-2015.

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

The defence budget for the financial year 2015-16 will be set in the current spending round, which is expected to conclude in the summer. The budget for subsequent years will be set in the next spending review. The Ministry of Defence has an agreement with Her Majesty’s Treasury that we may plan on the assumption of a 1% real-terms annual increase in the equipment budget—about 40% of the current defence budget, rising to 45%—from 2015-16 to 2020-21. Our equipment plan, which we recently published, is based on that assumption.

[Rosie Cooper]

On 14 May last year the Secretary of State boasted that he had balanced the budget over 10 years. To prove his claims, he said:

“I have agreed with the National Audit Office that it will review the equipment plan and confirm that it is affordable.”—[Official Report, 14 May 2012; Vol. 545, c. 264.]

However, in January the NAO’s report damningly said that it could not

“offer a definitive view on the affordability of the Equipment Plan.”

Will the Secretary of State tell us how we can believe a word that this Government say on defence when their central claim to competence cannot be confirmed by the independent auditor?

[Mr Hammond]

I think the hon. Lady needs to go away and read the National Audit Office report carefully. To put it into context, she probably needs to read some previous NAO reports on equipment plans. For example, in its 2010 report the NAO discovered that in a single year under Labour just two programmes—Typhoon and the Queen Elizabeth-class aircraft carrier—rose by £3.3 billion in cost. In 2009, it said that

“the budget remains consistently unaffordable over the next ten years”

and that attempts to rebalance the defence budget had represented poor value for money. We are very happy with the NAO’s review of the equipment plan, which recognised the huge steps of progress that we have made and set out an affordability assessment model for the Department’s assumptions.

[Mr Speaker]

Order. Both the question and the answer are hopelessly long-winded; we need to get better.

[Derek Twigg]

The Prime Minister promised real-terms growth in the post-2015 budget. Can the Secretary of State confirm that that will still be the case for the equipment budget and the non-equipment budget?

[Mr Hammond]

The Prime Minister has made it clear that he stands by his view that the equipment plan budget needs to increase in real terms, and we have a pledge from Her Majesty’s Treasury that we may plan on the assumption of a 1% real-terms increase. Our planning assumption is flat real-terms growth for the remainder of the budget.

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

I do not think that that was precisely what the Prime Minister said. Nevertheless, does my right hon. Friend the Secretary of State agree that if we possibly can we should continue to meet the NATO objective of spending at least 2% of our gross domestic product on defence?

[Mr Hammond]

I agree with my right hon. Friend. The plans that we have set out do indeed show that we will continue to comply with that 2% threshold.

[Sir Gerald Howarth (Aldershot) (Con)]

Will the Secretary of State enlighten the House on what discussions he has had with the Treasury in the light of the Prime Minister’s most welcome announcement last week that some of the aid budget might very usefully be diverted to peacekeeping operations? The Department for International Development is to have another £2.65 billion extra this year, but how on earth is it going to spend it when the Ministry of Defence is so short of cash?

[Mr Hammond]

I shall leave it to my right hon. Friend the International Development Secretary to explain how DFID proposes to spend its budget. There is already a high level of co-operation between the Ministry of Defence, the Foreign Office and DFID. It makes absolute sense to look at how we spend the budgets available across those three Departments in order to achieve their objectives and secure the UK’s vital national interests.

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

Last May the Secretary of State announced to an outburst of self-congratulation that he had balanced the MOD’s books and, as we have heard, he even called on the National Audit Office to validate his assertion. Instead, however, the auditors have declared that his costings are “over-optimistic” and his approach “not statistically valid”. Put simply, the NAO said:

“The costings are not sufficiently robust to support the affordability assertion.”

Is it not now time for the Defence Secretary, just like the Prime Minister, finally to admit that he has failed to deliver on his boasts on the MOD budget?

[Mr Hammond]

No, and I am sorry that the hon. Member for West Lancashire (Rosie Cooper) has stolen the right hon. Gentleman’s thunder. We now have an equipment plan that includes £4.8 billion of centrally held contingency, £8.4 billion of contingency in the individual projects, and £8 billion of unallocated headroom. The right hon. Gentleman might have noted that the right hon. Member for Barking (Margaret Hodge) recently said that, since the election, the MOD has made

“welcome progress…particularly on the purchasing of equipment”

and “great strides forward”. That is in marked contrast to the National Audit Office and Public Accounts Committee’s assessment of what happened under the previous Government.

[Mr Murphy]

The Secretary of State should spare us the lecture. This is the party that sold off the Harriers, that could not decide which aeroplanes to put on the carriers, that sends our one carrier to sea without any aeroplanes and that cost the country tens of millions of pounds.

To return to the budget, we now know that when the Defence Secretary told this House that the defence budget was balanced, he meant that only 40% of it was costed. The National Audit Office looked at just £1 in every £5 of the MOD’s budget, and even then it discovered a £12.5 billion black hole in the plans. The NAO said:

“Achieving affordability is…contingent on savings being achieved elsewhere in the budget.”

Will the Defence Secretary confirm the NAO’s figure for the new black hole and that his plans to boost the equipment budget will fall on the back of further cuts to our armed forces and their welfare?

[Mr Hammond]

No. The right hon. Gentleman is simply wrong. The figure of £12.5 billion is from CAAS—the internal cost assessment and assurance service. It was quoted by the National Audit Office and has subsequently been reassessed at £4.4 billion. [Interruption.] No, it was by CAAS and has been reassessed at £4.4 billion. The right hon. Gentleman is simply wrong.

Labour has to decide whether it is going to engage seriously in this debate or not. At last year’s Labour conference, the right hon. Gentleman told his party that it

“must deal with the issues we would if we were in power…No smoke and mirrors, no delay in tough decisions”.

Just two weeks ago, however, he told The Daily Telegraph:

“I’m not going to say we will guarantee to overturn this cut or the other.”

Which is it to be: tough decisions or more ducking and weaving?

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

The 2011 independent commission acknowledged the increased cost of collectively training Territorial Army units over their regular brethren when force generation factors were taken into account. Given that the Green Paper makes clear that TA units will be more frequently used, will the Government justify their claim that replacing regular troops with reservists is cost-effective?

[Mr Hammond]

As my hon. Friend knows, we have allocated £1.8 billion over 10 years for additional training, infrastructure and equipment for the reserves to try to rebuild the broken trust that resulted from the previous Government’s slashing of funding for reserve training and equipment. On the economics of using reserves instead of regular forces, it is true that, when deployed on operations, reserves are more expensive than regulars, but, held as a contingency, reserves are significantly lower cost than regular forces. We are simply trying, within the budget envelope available, to create the greatest amount of military capacity it is possible to generate.

[Mr Crispin Blunt (Reigate) (Con)]

Is the Secretary of State able to give any detail as to the exact consequences of the Prime Minister’s welcome statement on the use of the DFID budget alongside the budgets of the Foreign Office and the Ministry of Defence for the future of defence diplomacy?

[Mr Hammond]

As I have said, we already co-operate significantly. The conflict pool is a tri-departmental pool of funding that is used for upstream stabilisation and capacity-building operations. The Prime Minister was alluding to a commitment by all three Departments to look again at how we can do more of that to support the UK’s national interests, while at the same time support the development agenda. It is a simple fact that unless there is security it is not possible to have economic development or effective poverty eradication.

[Jeremy Corbyn (Islington North) (Lab)]

2. What his most recent estimate is of costs up to 2016 of the replacement of the Trident nuclear missile system.

--- Later in debate ---

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

11. What plans he has for the non-equipment defence budget.

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

The defence budget was set for this Parliament in the spending review conducted in 2010. As I have set out, the budget for financial year 2015-16 will be set in the current spending round, which is expected to conclude in the summer. The MOD’s planning assumption is that the non-equipment element of the budget, about 55% to 60% of the total, will grow in line with inflation—that is, will remain flat in real terms—over the 10-year planning horizon that the Department uses for budgeting purposes.

[Ian Mearns]

The National Audit Office has called into question the Secretary of State’s projections, and MOD analysis shows that capability gaps could arise in some areas, particularly the Army. Will the Secretary of State publish the analysis to which the NAO referred, and will he guarantee to all future, current and past members of the Army that their livelihoods will not be cut to pay for miscalculations within the Department?

[Mr Hammond]

I can tell the hon. Gentleman that we have right-sized the Army to the budgets we have available, and having taken tough decisions we are in the process of drawing the Army down to its future size of 82,000. That size will allow us to equip and protect properly our service men and women when we ask them to go out and do a very dangerous job on our behalf, and we believe that is the right approach.

[Mrs Glindon]

Given that the National Audit Office did not confirm the affordability of the equipment plan, will the Secretary of State commit to publishing a more detailed summary of the plan with individual funding lines for individual programmes?

[Mr Hammond]

I remind the hon. Lady that the question is about the non-equipment defence budget. For the equipment budget we have published a plan that is more detailed than anything published previously, and certainly more detailed than any equipment plan published during the 13 years of the Labour Government. We have gone as far as we believe we can without compromising either national security or taxpayers’ commercial interests in negotiating with defence contractors, and I am afraid I cannot offer her any more detail than that already published without compromising those things.

[Mr James Clappison (Hertsmere) (Con)]

Although Ministers rightly never comment on funding for our special forces, does my right hon. Friend agree that the current operational capability of our special forces, in terms of both equipment and manpower, is a huge national asset?

[Mr Hammond]

Our special forces are a huge national asset, and their capability has been expanded very substantially in response to the needs of Operation Herrick in Afghanistan. It follows that as we draw down from our operations in Afghanistan we will want to review some of the supporting infrastructure put in place for that specific operation. As my hon. Friend will know, however, the MOD never comments publicly on the details of special forces numbers, funding or disposition.

[Stephen Mosley (City of Chester) (Con)]

Last week I met trade union representatives from Defence Support Group Sealand who are obviously concerned about the future of the maintenance budget. What future plans does the Secretary of State have for the maintenance budget, and in particular on whether DSG might be privatised?

[Mr Hammond]

The current intention is that DSG will be privatised, and we are in the process of achieving that objective. On the equipment support budget, one important innovation—hon. Members might have thought that this was standard practice, but it has not been until now—is to ensure that no equipment is allowed into the programme for procurement unless we also clearly have a budget to support that equipment over the 10-year horizon to which we budget. Achieving that will ensure not only that our equipment will be first class, but that we can maintain it in first-class condition.

[Mr Russell Brown (Dumfries and Galloway) (Lab)]

On an all-too-frequent basis, we hear of cyber-attacks on global businesses and Government Departments globally. Last month, the Select Committee on Defence published its report on defence and cyber-security, which appears to highlight a number of failings. Bearing in mind that cyber-security cuts right across the Government, does the Secretary of State recognise the need for even more investment in it? What percentage of any additional governmental spend will go to his budget?

[Mr Hammond]

Cyber-security is a cross-Government agenda led by the Cabinet Office, but the Ministry of Defence is heavily involved in the programme. The hon. Gentleman is right to draw attention to the increasing frequency and severity of attacks on industrial and civilian infrastructure targets not just in the UK but throughout the western world. The arrangements the Government have put in place for a quinquennial strategic defence and security review give us a framework within which to review our responses to cyber-threats and to make any adjustments in priority that we need to make for the next five-year period. The allocation of costs across Departments would be a matter for the next spending review.

[Phil Wilson (Sedgefield) (Lab)]

7. What plans he has for the future of the core equipment programme.

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

Having established the core equipment programme in planning round 12, as I announced on 14 May 2012, we are now concentrating on delivering that core programme. We will, however, continue to keep under review candidate projects for inclusion in the core programme in the future, bearing in mind that we have £8 billion of uncommitted headroom in the programme. However, before we include any further projects, we will need to be satisfied, first, of the capability need and, secondly, that we have sufficient room within the budget to see projects through to completion and sustain them in operation. Thirdly, decisions will be required to meet proposed in-service dates.

[Phil Wilson]

The National Audit Office has identified a £12.5 billion black hole in the Department’s equipment plan. Will the Secretary of State say how he will fill that black hole?

[Mr Hammond]

We have done this one before. As I explained to the right hon. Member for East Renfrewshire (Mr Murphy), the £12.5 billion quoted by the NAO is a CAAS figure, based on its assessment of early summer 2012. In October, CAAS reported that it had downgraded its assessment of the contingency requirement to £4.4 billion, which is rather less than we have allocated in the budget.

[Peter Luff (Mid Worcestershire) (Con)]

This is my opportunity not to ask a question on the defence equipment programme that I believed I would have to ask for a fourth time at Defence questions, but instead to congratulate my right hon. Friend on the programme’s publication. What has been the reaction from industry and elsewhere to the welcome detailed information in the equipment plan, and to its clean bill of health from the NAO?

[Mr Hammond]

I am grateful to my hon. Friend, who is an aficionado of NAO reports. Anybody who reads NAO reports regularly will recognise that, in context, the report was supportive and favourable. However, it does not make us complacent—we still have a great deal of work to do. I can tell him that the response from industry has been favourable. I chaired a meeting of the defence suppliers forum the week before last, which commented favourably on the report and the guidance it gives in directing its investment in future capability.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

In a written answer on 11 February to my hon. Friend the Member for Coventry South (Mr Cunningham), the Under-Secretary of State for Defence, the hon. Member for Ludlow (Mr Dunne), who has responsibility for defence equipment, said:

“This Government will not blindly pursue projects, ignoring new information about defence equipment acquisitions.”—[Official Report, 11 February 2013; Vol. 558, c. 442W.]

That is obviously vital in core programmes, but the Defence Committee report on defence acquisition suggested that that was exactly what the Government have done. It concluded that decisions were

“rushed and based upon incomplete and inaccurate policy development…and…without the MoD understanding how the change could be implemented.”

Was the Committee wrong to question the Government’s competence?

[Mr Hammond]

The reference that the hon. Lady cites is specifically to decisions made in 2010. We have received the Committee’s report, we are studying it very carefully and we will publish our response in due course.

[Richard Drax (South Dorset) (Con)]

8. What plans he has for the training of reservists.

--- Later in debate ---

[Mr Speaker]

The ministerial statement is now forthcoming.

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

Our priority is and will remain the success of the operation in Afghanistan. Beyond that, my priority is to deliver the military tasks for which the MOD is mandated. The MOD is also engaged in a major project of transformation to bring about the behavioural change that is needed to maintain a balanced budget and to deliver equipment programmes, so that our armed forces can be confident of being properly equipped and trained. To deliver that project, we need to complete the rebasing of the Army from Germany, secure our target level of trained reserves and restructure the Defence Infrastructure Organisation and Defence Equipment and Support. In parallel with the defence transformation project, I am focused on the steps we need to take to restore confidence in the future to those who serve in the armed forces after a period of turbulence and uncertainty.

[Andy Sawford]

Why do the Government think it right that the pension age for firefighters in the defence fire and rescue service is to be aligned with the civil service pension age, rather than with the age for civilian firefighters, given that the job done by those serving in our defence services is no less dangerous, and certainly no less physically challenging, than that done by other firefighters?

--- Later in debate ---

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

When Ministers were last asked about the need to double the reserve force numbers, they dodged the question, instead talking about the increase in Territorial Army inquiries. Today we have heard from Ministers that they are hopeful that the policy will be a success. However, a policy that the country needs to be a success is being totally mishandled, with missed targets and too few businesses aware of the Government’s plans. Instead of talking about inquiries, will Ministers now place on record the fact that recruitment targets are being missed? Surely, in relation to this important issue, accepting that there is a problem would be the first step towards dealing with the problem.

[Mr Hammond]

Let me say to the right hon. Gentleman that the way in which we will not increase confidence in the Territorial Army, and will not increase reserve numbers, is arbitrarily cancelling its members’ training, cutting their kit and relegating them to the second division, which is what his party did in government. [Interruption.]

[Mr Speaker]

Order. The right hon. Member for East Renfrewshire (Mr Murphy) is assuming that there is an automatic link between what he says and what the Secretary of State says, which is itself the creation of a notable parliamentary precedent. However, it is not for the right hon. Gentleman to yell from a sedentary position. He asked the question; whether he likes the answer or not, he is getting an answer, and he owes the Secretary of State the courtesy of hearing it.

[Mr Hammond]

That is certainly not a precedent that I noticed during my 13 years of opposition.

Let me say this to the right hon. Gentleman. We know that we have set ourselves a substantial challenge in increasing the size of the Army reserve to 30,000. We have a number of measures in train, including a new recruiting campaign which started only 10 days ago. We expect to start to make significant progress this year. We will be publishing details of recruitment and retention figures, and as my right hon. Friend the Minister for the Armed Forces suggested earlier, we will do that periodically and regularly—not, I think, monthly, but probably on a quarterly basis.

[Richard Drax (South Dorset) (Con)]

T4. I understand that it costs about £14 million a year for HMS Bulwark’s sister ship, HMS Albion, to sit in Portsmouth doing not very much. Given the Prime Minister’s new-found enthusiasm for spending on our armed services, may I suggest that some of the money be used to put this wonderful ship to sea—if for no other reason than to help the Department for International Development?

--- Later in debate ---

[Mr Frank Roy (Motherwell and Wishaw) (Lab)]

Will the Secretary of State tell the House how many jobs will be lost at Faslane nuclear base if Scotland separates from the United Kingdom?

[Mr Philip Hammond]

As the House will know, the Government are confident that the Scottish people will decide in the referendum that the benefits of union far outweigh anything else on offer and will make the right decision. The hon. Gentleman is right to observe that significant numbers of jobs, not just in the immediate vicinity but across the whole of the west of Scotland—thousands of jobs—depend on the operation at Faslane. When I was last at the base, I made a specific inquiry about the geographical location of workers. People come to the base daily from the east coast, so such a change would affect the whole central area of Scotland.

[Andrew Stephenson (Pendle) (Con)]

T7. Constituents of mine, including Councillor Jenny Purcell, have raised with me the worrying case of soldier Harry Killick, who suffers from post-traumatic stress and has received recent press coverage. What steps is my right hon. Friend taking to provide support for personnel with post-traumatic stress disorder, such as Harry?

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

In response to my hon. Friend the Member for Gateshead (Ian Mearns), the Secretary of State said that he had “right-sized” the Army in line with the defence budget. How would he rebut the suggestion that that sounds like the strategic defence review was not strategic but budget-driven?

[Mr Philip Hammond]

It sounds like a Government who are rejecting the previous Government’s policy of sending people out to do a dangerous job without the kit, equipment and support that they need and deserve. We have a moral obligation not to put people in harm’s way unless they are properly equipped, and setting the size of the armed forces at a level the taxpayer can afford to support and equip properly is the morally correct and appropriate thing to do.

[Tessa Munt (Wells) (LD)]

I would like to ask the Secretary of State whether it is the case that when service personnel are accused of breaking the law their pay is stopped with immediate effect, which can cause real hardship to service families who are left unable to meet the costs of rent, bills and food, as well as of independent legal advice. If that is so, what is the justification for that and will he review the situation?

Afghanistan (Lines of Communication)

Lord Hammond of Runnymede Excerpts

Wednesday 13th February 2013 Written Statements

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

I have today laid before Parliament three bilateral reverse transit agreements with the Republic of Uzbekistan; and a Ministry of Defence departmental minute describing a gifting package which the UK intends to make to the Republic of Uzbekistan.

International Security Assistance Force (ISAF) combat operations are due to be completed by the end of 2014. The Government have announced that UK troop numbers in Afghanistan, currently at around 9,000, are due to fall to about 5,200 by the end of 2013 with further significant reductions planned for 2014. The MOD has begun to plan for the recovery of some £4 billion of inventory deployed to Afghanistan. On current estimates, this could amount to the equivalent of about 6,500 twenty- foot containers of equipment, together with about 2,500 vehicles. The draw down operation is made even more challenging by Afghanistan’s remote geographical location, difficult terrain and potentially unstable regional security conditions.

Currently, the only surface option for the recovery of UK equipment from Afghanistan is by the southern transit route through Pakistan. We are in the process of opening this reverse transit route with the Pakistani Government. However, this route will be hard pressed to meet the capacity demands that ISAF draw down will generate. We have therefore been seeking to diversify our potential equipment recovery options by establishing reverse transit routes (surface and air) through the central Asian Republics and Russia—collectively known as the Northern Lines of Communication (NLOC).

Three reverse transit agreements have been concluded with the Republic of Uzbekistan, enabling the recovery of non-war like stores and, separately, motorised armoured vehicles, by rail; and equipment (including war-like stores and ammunition) and personnel by air. These are being published as Command Papers (Cm 8522, 8523 and 8524) and are today being laid before Parliament, each with an accompanying explanatory memorandum. These agreements have already completed Uzbek parliamentary ratification procedures and will enter into force once the UK formally notifies the Republic of Uzbekistan that our internal clearance procedures are complete.

My Right hon. Friend the Minister for Europe’s written statement of 23 February 2012, Official Report, column 83WS set out the broader context of the UK’s engagement with central Asia, noting that underpinning the UK’s growing prosperity and security interests in the region is our commitment to promote core values of the rule of law, human rights and democracy. As part of our promotion of regional security and stability, we will continue to engage with the Republic of Uzbekistan on these core values and on a range of security-related issues, including counter-terrorism, counter-narcotics and border security, continued support to Afghanistan stabilisation, conflict prevention and crisis management work, counter-radicalisation and some aspects of defence reform and co-operation.

The Republic of Uzbekistan has already played a constructive role in helping to secure Afghanistan’s stability but will face increased security challenges once ISAF has withdrawn from Afghanistan. We have therefore been examining options for gifting surplus UK equipment to help meet those challenges. The departmental minute which I have today laid before Parliament describes a gifting package to the Republic of Uzbekistan of surplus Leyland DAF trucks and Land Rover spares that is intended to contribute to this. Both items have been examined and cleared against the consolidated EU and national arms export licensing criteria, which include an assessment of whether the equipment might be used for human rights violations or internal repression. Subject to completion of the departmental minute process, delivery will be undertaken progressively during 2013.

Votes A Annual Estimate 2013-14

Lord Hammond of Runnymede Excerpts

Wednesday 13th February 2013 Written Statements

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

The Ministry of Defence Votes A estimate 2013-14, will be laid before the House on 13 February 2013 as HC 855. This outlines the maximum numbers of personnel to be maintained for each service in the armed forces during financial year 2013-14.

Votes A Supplementary Estimate 2012-13

Lord Hammond of Runnymede Excerpts

Wednesday 13th February 2013 Written Statements

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

The Ministry of Defence Votes A Supplementary Estimate 2012-13, will be laid before the House on 13 February 2013 as HC 856. This outlines the increased maximum numbers of personnel to be maintained for service in the reserve land forces and the reserve air forces during financial year 2012-13.

Afghanistan (Roulement)

Lord Hammond of Runnymede Excerpts

Tuesday 12th February 2013 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 2013. Around half of these units will form Taskforce Helmand under command of 1 Mechanised Brigade. The remainder will deploy within Helmand and also to other locations in Afghanistan—particularly Kandahar and Kabul—as part of the UK’s overall contribution. The forces deploying include¹: